QuickBooks is known for its affordability and useability. For small businesses, it’s often preferred for basic accounting purposes. But it’s not built for managing complex business processes.
If you’re looking to scale and expand your business, then consider upgrading to an Enterprise Resource Planning (ERP) platform like Oracle NetSuite ERP. Let’s take a closer look at why companies that use QuickBooks are switching to NetSuite.
Why Companies That Use QuickBooks Migrate to NetSuite
NetSuite is a best-in-class ERP platform that unifies accounting, financial, and business processes for growing businesses. Consider these great reasons why you should prepare to transition from QuickBooks to NetSuite.
1. Unified Cloud-Based System
NetSuite ERP supports growth and scalability through a cloud-based, unified platform. You will gain access to real-time data supported by role-based dashboards and custom fields for robust reporting functionality. NetSuite supports companies looking to increase operational productivity by unifying key areas of the business:
- Project Management
- Professional Services and more
NetSuite’s real-time cloud-based system provides unparalleled visibility compared to QuickBooks and requires no changes to your IT Infrastructure.
2. Fully Customizable Roles
NetSuite allows for fully customizable user permissions. Your accounts receivable clerk doesn’t need the same accessibility as your company controller, and a sales associate does not need to access the same information as your sales manager. NetSuite’s flexibility allows you to create roles for individual employees and customize permissions for those roles. This allows for better controls in your organization compared to QuickBooks, which only allows you to use pre-set roles
3. Lease Management and Fixed Asset Management
NetSuite easily allows you to track and manage each asset’s life cycle, including creation, depreciation, revaluation, and disposal. Plus, both depreciating and non-depreciating assets can be handled inside the system, and robust reporting allows you to maintain accurate records.
NetSuite also handles the new accounting and reporting requirements for leases in ASC 842. The system allows users to set up amortization schedules and split out rental expenses from interest expenses for required reporting. Comparatively, QuickBooks does not offer fixed asset and lease management features.
4. Revenue Recognition
QuickBooks falls short in the area of Revenue Recognition. The system does allow for some workarounds, but the workarounds mainly consist of complex journal entries and the use of spreadsheets generated outside the system.
By comparison, NetSuite Advanced Revenue Management (ARM) fully automates the revenue recognition process. The automation provides for increased productivity, accuracy, and real-time reporting through dashboards designed to support monitoring.
The combination of automated revenue recognition and real-time financial reporting gives companies an easy path to compliance, even with the most complex contracts. NetSuite easily keeps your business in compliance with ASC 606, IFRS 15, and other standards.
5. Optimize Supply Chain Management, Inventory, and Warehouse
Accurate inventory management is key to your business’s profitability. NetSuite provides the capabilities to see inventory levels across all your locations. This takes the guesswork out of when you need to purchase inventory.
The customized modules for inventory management, warehouse management, and supply chain management provide detailed visibility that your business needs to be successful. NetSuite’s ability to connect to third-party systems that help manage inventory is a big plus. One example of this is the ability to connect to services like Rfsmart and Nextservice. These connections allow you to use one fully integrated system, which increases visibility and productivity for your staff managing the inventory.
6. Support Billing
NetSuite provides companies with real-time visibility into billing and financial activity. Consolidated invoicing, automated renewals, multiple subscription billing, and fixed billing are all supported natively inside NetSuite. The system also allows you to utilize promotional pricing or adjust billing after a specified time.
NetSuite’s billing solution, SuiteBilling, can also combine different services into one single client invoice. These robust capabilities make NetSuite the optimal solution compared to QuickBooks, which only offers basic billing functionality.
7. Utilize Accounts Payable and Purchasing Controls
NetSuite’s native approval workflow engine allows organizations to implement proper controls that fit their needs. These policies ensure that proper accounting controls are followed. In today’s work-from-home environment, this process makes approvals easier.
The robust functionality allows you to put exception processing in place when invoices do not match purchase orders. These features enforce separation of duties, reduce the risk of errors, and reduce the time required to process accounts payable. QuickBooks does not provide this level of purchasing controls, so the move to NetSuite will provide organizations with the immediate benefits of increased productivity and fewer errors.
8. Manage Accounts Receivable
NetSuite’s flexible accounts receivable system simplifies the process of managing your customers, monitoring receivables and receipts, generating reports, and using dashboards to monitor Key Performance Indicators (KPIs). The reporting functionality of the accounts receivable module allows you to view the aging schedule and KPIs for each customer in real-time. The system also allows you to see exceptions to easily correct issues.
Another unique feature of NetSuite is the ability to provide customers with self-service access to view real-time information on their orders and the ability to verify inventory levels. The self-service portal makes it simple for customers to answer questions independently without having to call and request information from your company.
9. General Ledger
NetSuite’s general ledger is the heart of the system and automates your accounting processes. The system adapts to the unique needs of your organization. The unlimited reporting segments and the capability to tailor your account types ensure the system can meet your distinct business requirements.
The multi-subsidiaries capabilities of the system set itself apart from QuickBooks, as this allows you to incorporate each business unit or subsidiary into one financial system report at a consolidated level and at the individual subsidiary level. This eliminates the need to have a different financial system for each entity. In practice, the NetSuite intercompany feature and auto elimination of intercompany transactions removes the need to consolidate outside of your financial system.
10. Full Reporting Capabilities
NetSuite and QuickBooks include standard accounting reports, such as Profit and Loss (P/L Statements), Balance Sheet, and Cash Flow. NetSuite’s comprehensive report library includes hundreds of real-time reports. Because of the multi-country/subsidiary/currency capabilities of the system, you can run these reports in the local currency of each subsidiary. The consolidated reporting is natively converted to the functional currency of the parent company, and this translation is all done automatically in the system.
NetSuite’s flexibility to drill across and drill down any record in the system gives you unparalleled reporting capabilities, providing you with more visibility into all facets of your organization. Because the system is cloud-based, it’s easy to access information from anywhere with an internet connection.
For added reporting capabilities, you can utilize the SuiteAnalytics and BI tool in NetSuite. SuiteAnalytics gives you the capability for real-time customizable searches across multi-subsidiaries, teams, and departments – all of this from one single source of information. This strategic reporting system gives you a clear view of the health of your business.
Also, NetSuite combines these key accounting functions with strong compliance management. The system reporting functionality allows your company to easily comply with regulatory requirements both domestically and internationally.
11. Useful Integrations With Other Software Tools
NetSuite has the ability to connect to outside systems by using custom API and EDI integrations available through SuiteApps, bundles, scripts, and pre-built connectors. Some of these connections include Nextservice, Tipalti, Shopify, Expensify, Versapay, Solution7, SPS Commerce, Celigo, Salesforce, Rfsmart, and many more. For a full list of third-party connectors, visit SuiteApp.com.
For more support with NetSuite integrations, our skilled development team offers custom API integrations to your internal or outside systems.
Ready to Migrate to NetSuite ERP?
We have identified some of the primary reasons why companies using QuickBooks are switching to NetSuite. We can help you make the transition through our industry-leading NetSuite implementation services. When you migrate to NetSuite, we can help you achieve the following positive outcomes:
- Real-time visibility into the health of your business.
- Lower operational costs.
- Increased productivity.
- Access to Key Performance Indicators (KPIs) to track performance across your organization.
- Set up for future success so that you can scale your business.
Let Finlyte show you the ways that NetSuite can meet the needs of your business to support growth. Contact us today to schedule a demo.