BlackLine Launches Tax Hyperautomation Capabilities for Intercompany Financial Management

Accounting automation software provider BlackLine, Inc.. announced what it calls the industry’s first “tax hyperautomation” capabilities for B2B financial management, designed to help multinational corporations navigate the complexities of transactions across multiple legal entities, billing channels and jurisdictional boundaries.

The expansion of BlackLine’s intercompany solutions comes in response to organizations facing increasing intercompany tax oversight globally, including cross-border reporting agreements and increased calls from tax authorities for real-time reporting and electronic compliance . Designed to reduce financial compliance, tax and other risks associated with today’s complex and globally connected business environment, BlackLine’s new tax hyperautomation capabilities offer a range of features to help organizations multinationals to understand and automate intercompany tax workflows, including:

  • Predefined transaction flows: to automatically apply country and service specific tax treatments for increased accuracy without the need for additional resources.
  • Tax Compliant and Verifiable Invoicing: Automatically generated in all jurisdictions to ensure compliance, audit support and deductibility claims.
  • Identifying and Classifying BEAT and Exempt Expenses: To manage BEAT (Base Erosion and Anti-Abuse Tax) and BEPS (Base Erosion and Profit Shifting) exposure without manual intervention.
  • Pre-configured service types: to automatically inform the tax treatment applied depending on the nature of the service, which provides greater granularity while improving overall deductibility.
  • Open standards-based APIs: to enable interoperability between indirect tax engines that customers choose based on their needs.

In the recent reportTop Tech Trends for 2022‘* from global industry research firm Gartner®, David Groombridge, VP Analyst, Gartner Infrastructure and Communication Services, says, “The heightened focus on growth, digitalization and operational excellence has highlighted the need for better and more widespread automation. Hyperautomation is a business-driven approach to identifying, verifying, and automating as many business processes as possible. »

Taking this approach, BlackLine defines tax hyperautomation as the holistic mapping and orchestrated use of tax-critical automation capabilities to break down financial silos in cross-company processes. Tax hyperautomation optimizes an organization’s total tax impact across multiple legal entities and billing channels.

“Tax considerations are critical to any company’s business-to-business transactions, but too often they are handled independently and related party processes and automation in this area lag significantly behind scrutiny and attention. granted to transactions with third parties,” said Varun Tejpal, managing director, B2B, at BlackLine. “Intercompany financial management, on the other hand, is an approach that incorporates tax considerations into how intercompany transactions are optimized. BlackLine’s new functionality brings the tax function to the table by providing core technology and business process optimization that will help dramatically improve control, transparency and overall business results for our clients.

BlackLine’s enhanced tax functions to provide global tax control are part of the company’s broader strategy for intercompany financial management, an emerging category of intercompany solutions that aim to maximize staff efficiency and accounting accuracy, while simultaneously optimizing tax exposure, minimizing tax leakage and ensuring consistent tax and regulatory compliance.

“As the volume of regulations and transactions increase, multinational organizations may face challenges supporting their business-to-business activity and making tax reporting decisions,” said Tom Toppen, Deloitte BlackLine Alliance Leader and a Managing Director of Deloitte Risk & Financial Advisory, Deloitte & Touche LLP. “By automating intercompany flows across the global transaction value chain, organizations can reduce manual effort and increase overall tax compliance while finding new ways to deliver value-added information that supports a more effective business strategy. wide. »

For more information on BlackLine’s business-to-business financial management solutions, please visit https://www.blackline.com/intercompany.

Geraldine L. Melton