How Blackline Review Works
The review generally follows the organization's financial close and control framework. Finance teams establish review criteria, examine relevant records, investigate exceptions, and document conclusions. The scope can cover individual accounts, business units, periods, reconciliations, journal entries, or the complete financial close.
A practical review sequence often includes identifying accounts and activities requiring attention, checking supporting evidence, validating reconciliation status, reviewing outstanding items, confirming appropriate approvals, and recording follow-up actions. Clear ownership helps ensure that every identified exception reaches an appropriate resolution.
- Account review: Examine balances, reconciliations, aging items, and supporting documentation.
- Close review: Confirm that assigned close activities and approvals are completed according to policy.
- Exception review: Investigate unexplained differences, unusual transactions, and unresolved reconciling items.
- Control review: Verify that evidence supports the required financial and accounting controls.
Key Areas Examined
Blackline Review can cover bank reconciliations, balance sheet reconciliations, journal entries, account certifications, task completion, and close-related documentation. Reviewers may also examine whether account balances agree with underlying records and whether reconciling items have appropriate explanations and resolution dates.
The chart of accounts is particularly important because account classification affects reconciliation ownership, reporting consistency, and the level at which financial activity is reviewed. A well-structured account framework makes it easier to identify unusual movements and assign responsibility for follow-up.
Procurement-related transactions may also enter the review process. For example, a purchase order can provide evidence supporting an expense or payable transaction, while related invoices, receipts, and approvals help establish the completeness of the transaction trail.
BlackLine Review and Financial Controls
A strong review process connects financial close activities with documented control requirements. Reviewers should confirm that preparers and approvers are appropriately assigned, evidence is retained, exceptions are tracked, and review conclusions are identifiable. This creates a clearer connection between operational accounting and financial reporting.
Tax-related balances may require additional examination. Reviewing sales tax activity can involve checking jurisdictional treatment, applicable rates, exemption documentation, nexus considerations, and the consistency between transactional records and reported tax amounts. These checks can help support accurate financial reporting and tax compliance.
For organizations that require detailed evidence of finance activities, Audit Trails can provide a record of actions taken during vendor management, including activities performed by people or AI systems, supporting transparency and subsequent review.
BlackLine Review Across the Financial Close
BlackLine Review can extend beyond individual reconciliations to broader close management. A review may assess whether account certifications are complete, high-priority exceptions have been addressed, journal activity is appropriately supported, and reporting packages reflect approved financial information.
Organizations operating across multiple entities may also review intercompany activity carefully. Blackline Intercompany focuses on intercompany-related finance workflows and can be relevant when reviewing balances, transactions, settlements, and differences between related entities.
For organizations managing broader consolidation activities, Blackline Consolidation is relevant to understanding how financial information from different entities is brought together for consolidated reporting. Analytics can complement the review by helping finance teams examine patterns, trends, and exceptions; Blackline Analytics provides a useful reference point for this analytical dimension.
Best Practices for Blackline Review
Effective reviews should be based on clearly defined thresholds, ownership rules, evidence requirements, and escalation procedures. Reviewers should prioritize accounts and transactions according to materiality, risk, unusual activity, and reporting significance rather than applying identical scrutiny to every item.
- Define review criteria: Establish materiality thresholds, required evidence, approval rules, and exception categories.
- Prioritize exceptions: Focus attention on unexplained differences, aging reconciling items, unusual movements, and material balances.
- Maintain documentation: Keep sufficient evidence to demonstrate what was reviewed, by whom, and when.
- Connect reviews to reporting: Ensure account-level findings are considered before financial statements and management reports are finalized.
- Track recurring issues: Use historical review findings to identify accounts, processes, or transaction types that require stronger controls.
Business Value of Blackline Review
A disciplined Blackline Review process helps finance teams strengthen financial reporting quality, improve close visibility, and establish a consistent approach to reviewing accounting evidence. It can also support faster management decisions because unresolved exceptions and material account movements are surfaced before reporting is finalized.
The greatest value comes when review procedures are integrated with reconciliation, close management, journal governance, and financial reporting rather than treated as a separate end-of-period activity.
Summary
Blackline Review provides a structured approach for examining financial close activities, reconciliations, account balances, supporting evidence, exceptions, and controls. By combining defined review criteria with clear ownership, documentation, and follow-up, organizations can strengthen financial reporting and improve the reliability of their close process.