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How Cloud ERP is Replacing Outdated Accounting Software

Any business looking to thrive in their industry needs reliable and flexible accounting software. However, many organizations are still relying on manual processes for mission-critical tasks. Rely on traditional manual processes for data gathering and auditing leads to human errors, repetitive workflow, and less productivity. 

Some of these businesses have adopted some crude accounting software and spreadsheets to handle their daily business operations. However, these accounting packages still take longer hours to complete basic routine activities. That’s why 20% of new businesses fail within the first year, 45% fail by their fifth year, and 65% fail in their tenth year, according to the U.S. Bureau of Labor Statistics (BLS).

business fail infographic

The emergence of powerful accounting solutions like the NetSuite accounting software has made it easier for businesses to stay afloat. No matter your company’s size, NetSuite cloud financials, and accounting software can help you structure, strategize, and streamline your operations. To understand why the traditional manual month-end financial closure is not only slowing down your staff but your business, let’s take a look at the NetSuite accounting solution, its features, and its benefits.

Modern Financial Accounting Software for Businesses

Unlike other available solutions, NetSuite accounting software offers the most comprehensive suite for organizations of all sizes. For one, NetSuite seamlessly combines critical finance and accounting functions with strong compliance management to reduce the hours spent on monthly financial closure and improve business performance. Not to mention, with a 360-degree view of financial data, you can easily investigate and resolve delays and generate statements. In addition, you can make disclosures that comply with regulatory financial compliance requirements such as GAAP, ASC 606, and SOX.

NetSuite online accounting platform

Benefits of NetSuite Accounting Software

Financial Planning Improvement 

With NetSuite’s cloud-based automatic accounting procedures, your business can ensure accurate financial data to plan and forecast effectively for the next financial year. In addition to professional accounting features, you can customize your suite to suit your business. 

Professional Accounting Procedures

Thanks to NetSuite’s automated revenue recognition management featureyou can view real-time financial statements for any transaction. For organizations with multi-enterprise subsidiaries, the system supports multiple currencies conversion and accounting standards together with customizable multi-books. 

financial planning benefits

Flexible Customizable Interface 

Equipped with a customizable dashboard, businesses can modify their business overview to suit their organizational style, branding, and accounting role. Shortcuts to important features that your business needs daily, such as financial reports and KPIs, can be added and made visible on the first display on the dashboard to make it easier for assigned staff and managers to view reports and key performance indicators (KPIs). 

Accurate Data Import 

Human errors are a common occurrence with manual accounting entries. However, you can avoid human errors using NetSuite accounting, which automatically imports data from the various departments of your business with a single click.

accurate data and flexible interface

Features of NetSuite Cloud Accounting Software

In order to leverage the professional functions of NetSuite accounting, you need to enable the account features, set your business preferences, and create accounting lists based on the operation of your enterprise. These features include: 

Automated Bank Statement Import 

Until now, importing bank statements to match transactions against the general ledger for proper reconciliation only supported a few file formats like CSV, BAI2, or OFX. However, with the introduction of Parsers SuiteApp, businesses can automate the import of bank statements through SuiteScripts. Also, SuiteScripts allows businesses to parse and automatically import bank statements via SFTP in any file type. 

computer screen using netsuite financials

Financial Budgeting & Reporting

NetSuite cloud accounting software provides the option to automatically import your planned budget per annum and enables the easy entry of actuals per account with real-time visible reports that can be easily accessible, reviewed, analyzed, and presented to the boards or investors for better decision making. 

Intuitive Bank Matching 

In order to leverage the bank matching feature of the newly released 2020.1 NetSuite version, users have to enable it. Once this feature is enabled, you can choose to reconcile manually into NetSuite or automatically via the bank feeds or the new financial institution connectivity API. After bank statements are uploaded, the function matches transactions to transactions in the existing general ledger for an accurate reconciliation. 

reconciliation

Consolidation, Intercompany Management, and Elimination 

With NetSuite accounting software, businesses can consolidate their accounting information based on their main subsidiary. To remove the effect of investment in enterprises and subsidiaries within a single organization, businesses can eliminate expenses or revenue. In addition, the intercompany management feature can help track and audit intercompany transactions between subsidiaries for improved accounting purposes. 

Foreign Currency Management and Chart of Accounts

NetSuite accounting enables businesses of all sizes and industries to support foreign currency management. This is especially useful for enterprises with customers and vendors that use different currencies or have multiple locations.

Reconciliation 

NetSuite accounting software promotes faster reconciliation by automating the process of importing bank transactions. It also allows for customization of parameters for auto-matching of bills, expenses, vendor credits, reports, invoices, payments, and credit memos directly into NetSuite using standard bank transaction reports or through CSV.  

reconciliation

Amortization, Allocations, and Journal Entries 

The amortization, allocation, and journal entry features of the NetSuite accounting software helps you keep an up-to-date record of the general ledger impact of expenses and purchases incurred across multiple future periods while splitting expenses among classes of individuals in advance of incurring the expense. The use of the journal entry feature of the NetSuite accounting software can help adjust the balances in your general ledger without entering a posting transaction. 

Conclusion

The NetSuite accounting software is cloud-based and a 100% complete module designed for all of your accounting software requirements, no matter if you are a small local business or a large global enterprise. Because of this, you’ll always have access to real-time financials that are automatically updated, saving you the errors and wasted time that comes with manual accounting. 

Modern businesses need an accounting solution that can scale as their business grows. Their accounting software should also be customizable across roles and departments to maximize operational flexibility. With NetSuite accounting software, you have the tools to streamline your daily operations and forecast for future development and expansion.

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