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Ultimate Guide to Understand NetSuite Accounting Module

Ultimate Guide to Understand NetSuite Accounting Module

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In today’s highly aggressive global business environment, organizations have to juggle with many moving parts. Apart from living up to expectations of the customers, organizations need to have a complete control over supply chain, sales order, customer service and other aspects of business. Furthermore, manual processes are prone to costly errors and delays while disparate data sources can lead to a siloed approach that eventually prevents seamless communication & collaboration. NetSuite is a true SaaS, Cloud-based Financial Management Solution that enables you to stay competitive and profitable.

As a complete and scalable financial management solution, NetSuite accelerates daily financial closures while ensuring compliance. NetSuite not only offers real-time visibility into the financial performance of the business but also integrates seamlessly with all NetSuite functions like order management, inventory, CRM and ecommerce to streamline critical business processes. Designed by Oracle for growth-oriented mid-size businesses and large enterprises, NetSuite improves operating efficiency, reduces cost and automates many front- and back-office processes.

Core Capabilities of NetSuite Accounting Module

Finance and Accounting – NetSuite comes with core finance and accounting functions with strong compliance management that enable organizations to quickly close financials reports while following regulations. NetSuite delivers real-time access to financial data, enabling decision makers to have a holistic view of financial performance of business. Core functionalities including General Ledger, Accounts Receivable, Accounts Payable, Tax Management, Fixed Assets Management, Cash Management, & Expense Management, NetSuite helps in ensuring strong financial management.

Budget Planning – As a leading cloud accounting software, NetSuite provides you clear visibility into budgets. NetSuite offers comprehensive expense allocation capabilities, further enabling you to monitor budget versus actual in real time. NetSuite enables you to allocate expenses without assigning them to classes, departments or locations. Rather than, you can allocate them according to a weighted formula. NetSuite supports management of multiple budgets, allowing you to set up and report on more than one budget for the same set of criteria, such as typical budget or a conservative budget scenario.

International Capabilities – NetSuite is designed to meet growing global regulatory challenges & compliance risk. With tax and compliance management capabilities, NetSuite offers a robust foundation for transparency, automation, simplicity and controls in the management of your global tax and compliance responsibilities. With support for mostly used languages, NetSuite provides comprehensive reporting and analytics for regulatory reporting, enabling you to grow business globally with confidence.

Audit & Compliance Reporting – Continuous changes in the indirect tax requirements put heavy burden on businesses. Compliance responsibility is a major hidden cost of business operations. By bringing transparency, automation & control, NetSuite can efficiently address such challenges. With always on audit trail, access logs for both external and tax auditors, NetSuite reduces audit risk. Furthermore, NetSuite enables you to standardize workflow across all international operations with tax calculation, enabling you to validate data entry based on standards and centrally defined configurable approval processes. With single system architecture, NetSuite prevents re-keying of transactional or tax data, avoiding common errors and traceability gaps found in traditional point solutions.

Intercompany Transactions – NetSuite provides you the ability to execute true intercompany business in a configurable, secure, fully automated, accurate, compliant, real-time process across intercompany transactions and reconciliations, and a lot more. By bringing down subsidiary restrictions, NetSuite provides a global view of business, enabling you to quickly understand what is going on anywhere in the world.

Accounting Hub – In case your other subsidiaries that are not using NetSuite, then information can be imported directly to NetSuite via CSV assigning information either at the transaction  level or account level to the general ledger so  that it can be consolidated as part of the  business entity’s overall financial statements.    

Multi-Currency Management – With support for 190+ currencies and exchange rates, NetSuite enables you to do business with both customers and vendors globally using wide variety of payment options. NetSuite, further, offers real-time currency conversion and financial consolidation for all your global operations, enabling you to manage international tax structures and restate currencies.

Configurable Tax Engine – As a scalable and flexible tax determination, calculation and reporting engine with a goal to support any tax rule, anywhere in the world, NetSuite enables you to calculate taxes in real-time on sales and purchase transactions and cross border sales.

Payment Processing – With support for electronic payments, NetSuite enables you to pay your vendor bills and employee expenses across the globe directly as well as take payments directly from customers. NetSuite puts the payments or direct debits into each bank’s predefined file format ready to import into banking software or submit to the bank online, thus lowering payment processing expenses by eliminating checks, postage and envelopes and saving time too.

Financial Planning – NetSuite delivers modeling capabilities, approval workflows and reporting within one collaborative scalable solution. With powerful calculation engine that supports wide range of business logic, NetSuite enables organizations to have comprehensive financial planning analysis and reporting. With NetSuite, organizations can create expense model and enable decision-makers and managers to communicate throughout the request, justification, review, and approval process. Furthermore, you can create and maintain travel and expense plans while keeping your business strategy aligned using built-in intelligence and analytic power. NetSuite offers you the ability to automate indirect expense allocations while having complete insights to it.

Invoice & Billing Management – As an agile & sophisticated solution, NetSuite offers amazing control and flexibility in billing and revenue management processes. NetSuite unifies your billing management and supports transaction, subscription, usage-based and any hybrid model, enabling you to manage revenue accurately and in accordance with the latest revenue recognition standards.

Revenue Recognition – NetSuite enables companies to comply with accounting standards including ASC 605, 606 and IFRS 15, ensuring report closure in a timely manner. Rule-based event handling framework automates revenue forecasting, allocation, recognition, reclassification, and auditing, enabling organizations to schedule, calculate and present revenue in financial statements accurately.

Financial Reporting – With comprehensive reporting and analytics based on in-built business intelligence, NetSuite enables decision makers to have real-time view of actionable insights. Furthermore, NetSuite supports a variety of reporting capabilities to retrieve, present, and analyze real-time business results. Using Report Builder tool, business managers can define custom reports to analyze financial KPIs. In addition to reports, NetSuite provides other analytic tools such as saved searches, report snapshots, etc., that may fit your requirements.

Global Accounting & Consolidation – With NetSuite, businesses can consolidate at the subsidiary and parent entity level while having consistent and compliant management across the organization, locally and globally. With multi-language user interface, NetSuite bridges communication barriers, enabling organization to understand what is happening across the global business in real-time.

Governance, Risk and Compliance (GRC) – Built-in capabilities of NetSuite enables organizations to easily handle complex regulatory, operational and compliance challenges. Powerful customization, automation and reporting capabilities of NetSuite empower your company’s Governance, Risk and Compliance (GRC) programs, enabling you to meet risk and control expectations while ensuring accuracy of your financial statements. Robust audit trails allow management and auditors to quickly and easily investigate all activity potentially impacting security, controls, or financial statements. NetSuite’s embedded and sustainable risk management and compliance process helps in proactively managing risk while saving cost and improving business performance.

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