Your private equity firm is thriving, your investors are happy, and life is good. But you’re not one to rest on your laurels. Like any passionate leader, you’re always looking for new tools to help you take your growing private equity firm to the next level.
With that in mind, when was the last time you evaluated your accounting and deal management software? If it’s been a while, you may find that some of your existing tools are due for an upgrade. Instead of replacing them with new disparate tools, why not consolidate them with the best private equity software on the market?
In this deep dive into private equity technology, we examine why using separate tools isn’t suitable for your firm. From there, we reveal why the Oracle NetSuite ERP platform is the top solution for firms in your position.
Why Disparate Software Isn’t the Answer for P/E Firms
When upgrading tech tools, you could deploy one piece of software for each function. For instance, you could invest in separate deal pipeline management tools, accounting software, investor support apps, and more applications.
Such a disjointed approach is less than ideal for many reasons. Consider these reasons why.
Causes Data Inconsistencies
Have you ever encountered a discrepancy between two of your data sources? If so, it probably sent you into a frenzy as you tried to pinpoint and correct the error. Any new software will certainly provide plenty of useful tools, but if your systems aren’t integrated, data inconsistencies will remain a frustrating challenge for your firm.
When you discover errors, you’ll be forced to waste valuable time discerning which system’s information is correct. If you can’t rectify the discrepancy, it could impact your investors — and, therefore, your bottom line.
Because data is the lifeblood of any growing P/E firm, why take unnecessary risks with data?
Drives Up Your Software Spend
There’s a common misconception that all-in-one solutions are too cost prohibitive for small to mid-sized firms.
A dynamic platform capable of performing various tasks will indeed have a higher price point than most standalone applications. Keep in mind, however, that the alternative is to foot the bill for several different tools. All those subscriptions can quickly add up.
Even if the cumulative costs of your disconnected tools are lower than the unified solution, the latter is guaranteed to deliver better value for your firm.
As the best private equity software solution on the market, NetSuite provides everything your firm needs to grow, all in one user-friendly platform. As a result of this expediency, you’ll save time, boost efficiency, reduce the total cost of ownership, and get more done each day.
Requires Loads of Extra Effort
Using many different software tools can make managing your tech stack needlessly tedious. For starters, you’ll have to download a half-dozen or more applications. While that part won’t take too long, mastering each program will. Even the most intuitive tools will come with at least a small learning curve.
Your team will be able to work more efficiently once they’ve become skilled at using each program. However, some of the hassles associated with using disparate tools will never fade.
For instance, when managing a deal, your team members will have to pivot between several different apps. This kind of back-and-forth can slow deal management to a crawl and diminish their ability to serve your investors.
Plus, the meter will keep running on the cost of managing each of these apps. Instead of asking your IT team to learn, manage, update, and monitor multiple different applications, they can master one platform, significantly reducing IT costs.
Creates Account Management Headaches
Perhaps the worst pitfall of using disjoined software is that doing so creates accounting nightmares.
Inefficiencies will plague your accounting processes due to the dependency on manual inputs. Your team will have to manually take all the data you get from different systems and put them into your accounting platform.
Every time they transfer data the old-fashioned way, there’s a risk of human error, and back-end accounting errors can affect trust in your private equity firm. These mistakes can also be incredibly costly and threaten cash flow.
You’ll have to bring on additional staff to resolve accounting headaches. Yet, even after the cleanup is complete, nothing has changed with the system. There remains a strong chance of repeat errors in the future.
The best option is to simplify the complexity of private equity accounting through NetSuite.
Why is NetSuite the Best Private Equity Software?
So, instead of investing in multiple applications, we recommend consolidating your software applications into one platform. Why? NetSuite fulfills several important purposes, including:
- Helping you manage deal flow
- Taking care of your accounting
- Supporting other critical functions required to run a growing P/E firm
NetSuite’s leading accounting and ERP platform can be tailored to meet your firm’s specific needs. It includes over a dozen modules, each of which addresses a specific process.
Cumulatively, these modules can streamline deal management and provide actionable insights about the state of your firm.
How NetSuite Supports Your Accounting Processes
NetSuite’s accounting solution gives you everything you need to support key management functions. Here are just a few of its many benefits.
Consolidates Your Investment Data
NetSuite can make your dream of having all data in one centralized location a reality.
With NetSuite, every piece of information your team gathers will be stored on a secure platform. This feature eliminates the need for manual data entry, thereby reducing the likelihood of costly errors.
Getting rid of redundant data-entry processes also reduces the workload on your team. In turn, they’ll have more time to serve your investors, perform due diligence, and support the growth of the firm. With NetSuite, everyone wins.
Eliminates the Need for Disparate Tools
While NetSuite is loaded with different accounting tools, all of them are accessible through the unified platform. The consistency between tools and modules softens your team’s learning curve and eliminates the need to learn multiple applications.
Consolidating your investment tools also assists with software subscription management. Instead of keeping up with multiple agreements, you can manage a single account. Doing so will keep your costs down and make it easier to track operating expenses.
Provides Real-Time Insights
NetSuite’s real-time analytics capabilities provide your firm with incredible value, allowing you to tap into your investment data to guide crucial decisions and deliver more for your investors.
With NetSuite, you can use historical data to conduct predictive analysis. These reports can reveal future trends and shed light on emerging investment opportunities.
Streamlines Deal Management
Closing deals is critical to the growth of your private equity firm. To increase your deal volume, you must either bring in more staff or improve deal flow efficiency.
NetSuite removes friction from deal management processes so you can get more done with your existing team, meaning you won’t have to take on added payroll expenses to build your P/E firm.
You can empower your team and help them unlock their full potential with NetSuite’s automation and optimization capabilities.
Supports Reporting Processes
Keeping investors in the loop will help build trust and strengthen your brand image. But generating reports can be tedious and frustrating when you rely on disparate software solutions.
NetSuite makes creating reports fast, simple, and effortless. With just a few clicks, your team can generate custom reports highlighting how you deliver value for investors.
NetSuite’s reporting capabilities are also a boon when it comes to auditing and governance processes. If the SEC opens an inquiry into your firm, you can quickly produce requested documents and demonstrate compliance.
Set the Stage for a Frictionless Migration to NetSuite
Ready to implement the best private equity software for your firm? If so, connect with the veteran NetSuite deployment experts at Finlyte.
We utilize a proprietary NetSuite implementation solution, ION (Investment Optimization for NetSuite), that makes it easy for P/E firms to implement NetSuite. Our versatile tool tailors the dynamic platform to your firm’s unique needs.
When you work with our team, you can achieve a strong ROI and condense the time to value. The accounting experts at Finlyte create even greater value by fine-tuning NetSuite for accounting purposes.
To learn more about our ION solution and NetSuite implementation support, schedule a consultation with Finlyte. Let’s talk about why NetSuite + Finlyte for your P/E firm.