2025-02-26

White Paper: Making R2R Automation Work – Lessons from the Trenches

Abstract

After years of hands-on experience in Record to Report (R2R) automation—especially financial close automation with tools like BlackLine, AICO, Redwood, FloQast, Workiva, and Trintech—I’ve seen what separates success from failure. It comes down to a few core factors: leadership buy-in, disciplined execution, strong governance, and team alignment. In this paper, I’ll break down the common pitfalls, from companies clinging to Excel despite having automation tools, to skipping the foundational work required for true transformation. More importantly, I’ll outline the best practices that drive results.

Introduction

I’ve spent years implementing R2R automation, helping companies modernize their financial close processes with cutting-edge solutions. When done right, the impact is transformational. But more often than not, companies approach automation with the wrong mindset—expecting technology to fix process inefficiencies without first addressing the root causes.

Here’s the reality: R2R automation isn’t just about picking the right tool. It’s about designing a scalable framework, enforcing policies, and ensuring your team fully embraces the shift. If these elements aren’t in place, automation will amplify existing inefficiencies rather than solve them. Let’s talk about what makes or breaks an R2R transformation.

What Makes R2R Automation Work?

1. Leadership Buy-In and Willingness to Listen

I’ve seen projects thrive when leadership actively listens to the experts and flounder when executives insist on forcing their own (often outdated) methods onto new technology. Companies that succeed in automation trust their implementation teams, remain open to change, and avoid reinventing the wheel.

2. A Structured Implementation Plan

Rushing into automation without a structured plan is a guaranteed way to waste time and money. The most successful implementations follow a clear, phased approach—typically aligned with best practices from the software provider. When companies try to take shortcuts, they end up paying for it later.

3. Governance and Standardization

No automation can function properly without clear accounting policies, controls, and standard operating procedures. A well-governed R2R process ensures consistency, audit readiness, and long-term efficiency. Companies that skip this step often find themselves manually adjusting transactions post-automation, negating any efficiency gains.

4. Full Team Adoption and Training

Technology is only as good as its users. I’ve seen teams continue emailing Excel files around despite having powerful automation tools at their disposal. Successful transformations invest heavily in training and internal change management to shift behaviors and ensure full adoption.

Where Things Go Wrong

1. Excel Dependence – The Silent Killer

One of the most common missteps I encounter is companies purchasing automation tools like BlackLine, only to continue attaching Excel spreadsheets instead of using built-in reconciliation templates. This is like buying a self-driving car and refusing to take your hands off the wheel—it defeats the purpose and introduces unnecessary risks.

2. Lack of Governance and Controls

Some organizations jump straight into automation without clearly defining policies, procedures, or compliance controls. This leads to poor data quality, audit failures, and a weak return on investment. A system is only as good as the framework it operates within—without governance, automation won’t fix bad processes.

3. Resistance to Change

The most sophisticated technology won’t help if users refuse to adapt. Legacy mindsets, fear of change, and reluctance to abandon familiar (but inefficient) methods often slow down or completely derail automation efforts.

Case Study: Two Companies, Two Outcomes

Company A: Implemented BlackLine but neglected governance, didn’t update accounting policies, and skipped comprehensive training. Post-implementation, employees were still emailing Excel files, resulting in data inconsistencies and an audit failure. The system was there, but the transformation wasn’t.

Company B: Took a disciplined approach—updated policies, trained employees, and enforced standardization. They reduced their financial close cycle by 20% and passed audits with minimal adjustments. The difference? A well-executed strategy, not just technology.

Best Practices for Success

Trust the Experts: Implementation partners bring valuable insights—listen to them.

Follow a Clear Roadmap: Avoid shortcuts and stick to a structured rollout plan.

Establish Governance Early: Policies, controls, and documentation should be in place before automation.

Invest in Training: Ensure users understand and adopt the new system, leaving old habits behind.

Monitor and Optimize: Regularly assess performance and fine-tune processes as needed.

Final Thoughts

R2R automation can deliver game-changing efficiencies, but only if approached strategically. It’s not just about buying the right software—it’s about leadership, planning, governance, and execution. Companies that take the time to get these fundamentals right will see lasting benefits, while those looking for a quick fix will continue to struggle.

Key Takeaways:

✔ Leadership alignment and willingness to change drive successful automation. ✔ Clear policies and controls are essential for a strong automation foundation. ✔ Over-reliance on Excel undermines automation and should be actively discouraged. ✔ A structured plan and proper training ensure long-term adoption and ROI.

This is my perspective based on years of hands-on experience. If you’re considering R2R automation or struggling with an existing implementation, let’s talk. I’d be happy to share insights and help you avoid common pitfalls.

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