Why You Need This Accounting Software for Venture Capital

Co-workers during a meeting discussing venture capital topics

When you first launched your investment firm, the basic accounting software you adopted likely met most of your needs. However, much has changed since then. Portfolio management has become a tough, labor-intensive process, but your firm is quickly growing.

Keeping the speed going means you need a new accounting system for your venture capital (VC) firm. Specifically, you need access to the best accounting software for venture capital firms available on the market, the NetSuite Enterprise Resource Planning (ERP) system.

NetSuite’s fund accounting tools can give you the visibility you need to make decisions at top speed while still looking out for your investor’s best interests. Let’s look at some signs that your current accounting software is holding you back and explain why you need NetSuite.

What’s NetSuite ERP?

NetSuite ERP is a unified business management platform geared toward the needs of firms in the investment community. It has over a dozen modules to help with main processes, such as:

  • Accounting
  • Reporting
  • Compliance
  • Resource management

Thanks to its modular design, you can choose the software you need and not be stuck with any you don’t. Additionally, you can set up NetSuite to align with the unique scope of your firm’s operations.

Most importantly, NetSuite provides a single source of truth. All of your VC data will be in one place, meaning your team can work more efficiently. 

Now that you know what NetSuite ERP can do, let’s shift our attention to some signs it’s time to make a change.

Is Your Venture Capital Accounting Software Holding You Back?

It’s tough to rely on an accounting software application that is clearly holding your firm back. To help you make a determination that it’s time for a change, here are some signs to look for.

Your Team Is Using Many Different Applications

Using too many unalike tools slows down your firm and ruins your efficiency. Additionally, you will begin racking up tons of licensing fees – if you aren’t already. Therefore, if your team works across a half-dozen or more platforms, it is time for a tech upgrade. 

NetSuite ERP gives your team the tools to handle deals within a single platform. It also blends with a wide range of third-party apps to simplify the portfolio management process. 

Data Visibility Is Poor

Can you check on the state of each of your accounts in real time? You might have to access multiple apps to obtain an overall view of your portfolio.

With bad data visibility, one of two things will happen: Either you will have to make choices without a full picture of the financial landscape, or you will have to slow down your processes, which can lead to missed chances.

NetSuite maximizes data visibility by giving you a real-time look at your portfolios. You can look at trends, take advantage of brief opportunities, and deliver optimal value to your investors. 

Compliance Is a Constant Concern

Venture capital managers are subject to major scrutiny from regulatory authorities like the Security and Exchange Commission (SEC). Getting on the wrong side of SEC regulators can lead to penalties and fines. And constant audits can damage your standing and lower investor trust. 

Basic accounting software makes compliance a hassle. Your data is hard to access and likely spread across many files and apps. This situation means preparing for audits will take far too long and will take away from your core processes.

NetSuite ERP helps you stay audit-ready with its robust reporting tools. All your data will be in one place, and you can tap into it to develop reports in minutes. When auditors come knocking, your firm will be ready.

Generating Reports Is Inefficient

Auditors are not the only ones that need access to correct and timely reports. Your investors must also be kept in the loop with easy-to-digest info. 

Most accounting software has some reporting capacity, but if yours is not merged with your other tech, these reports will be unfinished. Your team will have to input data from other platforms by hand to bridge the gap. That approach is inefficient and only raises the risk of reporting errors.

NetSuite ERP allows your team to set custom report factors, making creating detailed reports a breeze. They can use these tools to build trust with investors and show how your firm is providing value for those it serves. 

What Makes NetSuite the Best Accounting Software for Venture Capital?

NetSuite ERP can help you overcome each of the challenges outlined above and fuel the continued growth of your VC firm. In addition, you can also do the following:

Achieve Real-time Visibility

NetSuite offers advanced reporting tools and built-in dashboards. At a glance, you can get updates about the status of your portfolio, and each team member can tailor their dashboard to align with their role in the firm.

NetSuite’s real-time reporting abilities take the guesswork out of decision-making. You can access insights you need when you need them to make the best decisions for your investors.

Simplify Reporting

Preparing reports shouldn’t take weeks, and with NetSuite, it won’t. In minutes, you can set custom reporting measures and produce full charts and graphs. You can present information in a way that is easy to understand. In turn, that allows you to reduce friction between your firm and investors while building trust at the same time.

Optimize Productivity

Every time a team member has to switch between apps or hunt down a file, productivity suffers. Relying on basic accounting software can lead to hours of lost productivity every week, but NetSuite ERP empowers your team to maximize productivity. They can automate unneeded tasks and put their talents to use in serving your investors. 

Decrease Technology Costs

NetSuite ERP is a great technology asset that will yield a strong ROI. Switching to NetSuite also allows you to bring your tech stack together, meaning you will have to manage fewer licensing fees.

Consolidating your licenses into one platform will reduce your overall technology spend. You’ll experience downstream cost savings as well, as your IT team or managed services provider will no longer have to maintain so many applications.

Deliver for Your Investors

NetSuite ERP enables you to simplify the portfolio management process. You can get more deals done, take advantage of new opportunities, and deliver real results for your investors.

You can also stay compliant, avoid funding disbursement delays, and maximize profitability. On top of that, you will also be able to get out ahead of complex VC issues and ensure a smooth journey for your investors. 

Stay Audit-Ready

The VC sector has always been tightly regulated, but regulators are clamping down even more on VC firms. That means you need a scalable, robust accounting solution like NetSuite ERP.

You can tailor the NetSuite platform to align with the requirements that your industry is facing. You can also enact custom rule sets within the platform to ensure compliance and avoid penalties.

Take Your Firm to the Next Level with Our Implementation Solution

NetSuite ERP is the best accounting software for venture capital firms. Our team can help you take the next step of migrating to NetSuite with ease.

Our proprietary Investment Optimization for NetSuite (ION) implementation solution can deliver even more value for your firm. ION is purpose-built for VC firms. By utilizing our implementation solution, your firm can do the following:

  • Prospect potential investments
  • Streamline underwriting
  • Automate capital calls and distributions
  • Generate reports with blistering efficiency

As a premier NetSuite migration partner, Finlyte has the knowledge to ensure a seamless migration to NetSuite. We can configure NetSuite for your firm, migrate your data, and help you reduce your time to value using the platform.

To learn more, schedule a consultation with our team to discuss the power of NetSuite + ION for your VC firm.