What is NetSuite Financial Management?
NetSuite Financial Management is a comprehensive financial management solution that is cloud-based and part of an integrated business management suite provided by NetSuite. It has strong features aimed at automating and streamlining major accounting processes such as general ledger, accounts payable/receivable, revenue recognition, billing, and financial reporting.
The strength of this software lies in its ability to bring all financial data from various departments into one system allowing real-time visibility into key performance indicators. It also automates manual tasks like allocations, reconciliations and period end close processes. Also, it can be integrated with other NetSuite modules such as CRM and Ecommerce while offering different approval workflows that are customizable and supporting multiple currencies/languages/tax rates hence making it more efficient.
Benefits of NetSuite Financial Management
1. Automation of fundamental accounting tasks such as the general ledger, receivables/payables, revenue recognition, allocations and reconciliations that eliminates duplication saves time and ensures accuracy.
2. The ability to monitor financial performance indicators in real-time and see a whole consolidated view of the organization’s finances using only one combined system.
3. Eliminate human error by reducing manual processes and replacing multiple separate on-site finance systems, therefore it is both cheaper and increases efficiency.
4. Strong financial analysis & reporting capabilities to enable more insightful business decisions.
5. This platform also adheres to the accounting standards, rules, and regulations while ensuring auditability through built-in controls and workflows for compliance maintenance.
6. In NetSuite, financials are integrated seamlessly with other main business processes such as CRM, ecommerce, inventory and order management.
7. It has international functionality that supports multiple currencies, taxes and languages.
8. A scalable cloud-based solution to accommodate the changing needs of the business over time.
9. Across-the-board access of financial data and procedures is done via NetSuite’s cloud delivery system at any suitable time.
10. Instead of using conventional on-premises financial software, companies can cut down on IT overhead as well as total cost of ownership by going for this one.
Key Features of NetSuite Financial Management
1. General Ledger:
This has multiple books, automatic account management and configurable financial segmentation.
2. Accounts Receivable/Accounts Payable:
This is an end-to-end management solution for receivables, payables, cash flow and vendor payments.
3. Revenue Recognition:
Comprehensive automation tools to properly recognize revenue based on accounting standards.
4. Financial Reporting and Analytics:
It also has a powerful reporting engine with real-time access to consolidated financial data and customizable dashboards.
5. Billing and Invoicing:
There is automated billing, invoicing, integrated billings and advanced revenue management.
6. Period-End Close:
Ensured that period-end processes were streamlined by implementing automated reconciliations, allocations, currency revaluations and eliminations.
7. Multi-Currency Support:
Enables multiple currencies to be managed in the system and perform currency conversions. It also enables compliance with FAS52 rules.
8. Configurable Tax Engine:
Automated tax calculations using user-configured tax rules and schedules.
9. Approval Workflows:
Customizable approval routing and digital audit trails for transactions
Key Challenges that NetSuite Financial Management Helps Solve
• Inefficiencies from manual processes:
NetSuite automates core finance tasks like accounts receivable/payable, allocations, reconciliations, and period-end close processes.
• Lack of real-time financial visibility:
It provides a centralized, unified system with consolidated financial data and reporting across the organization.
• Disparate systems and disconnected data:
NetSuite eliminates the need for multiple on-premises financial systems by integrating financials with other operational data.
• Complex global accounting requirements:
It supports multi-currency, multi-language, multi-tax rate accounting and FAS 52 compliance.
• Revenue accounting complexities:
Robust revenue recognition functionality helps properly account for revenues based on accounting standards.
• Error-prone manual processes:
Automation reduces manual effort and errors in areas like invoicing, allocations, currency conversions etc.
• Compliance and auditability issues:
Approval workflows, audit trails and built-in controls enable better governance.
• Scalability limitations:
As a cloud solution, NetSuite can easily scale up or down based on changing business needs.
• Lack of mobility and accessibility:
Being cloud-based provides anytime, anywhere access to financial data and processes.
• High IT costs:
The SaaS model eliminates hardware/software purchases and reduces overall IT overhead.
What Is the Cost of NetSuite Financial Management?
This is a flexible cost which depends on several factors like users’ numbers, wanted product modules/capabilities, implementation services levels required and organization’s size/revenue. In comparison to smaller businesses, larger organizations with more complex needs will pay more in subscription fees.
Different product editions from NetSuite exist – usually with Light, Medium and Advanced packages with varying functionality and costs. The total subscription fee also rises when additional financial modules are integrated such as revenue management, billing and other financial aspects.
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Frequently Asked Questions (FAQs)
Yes, NetSuite Financial Management supports global operations with multi-currency, multi-language, and multi-tax rate functionality built-in.
NetSuite Financial Management automates general ledger, accounts receivable, accounts payable, revenue recognition, billing, invoicing, and financial reporting processes.
It centralizes all financial data from across the organization into one unified system, enabling real-time consolidated reporting and dashboards.
While training is recommended, NetSuite Financial Management has an intuitive interface. However, organizations may need implementation partners for complex customizations.
Yes, NetSuite has pre-built connectors and APIs to integrate with external financial applications, ERPs, payroll systems, and more if needed.