Why Should You Choose NetSuite Over QuickBooks?

  • December 7, 2022
  • Jhansi Rani
  • 0
Published On December 7, 2022

As companies grow and accounting complexity increases, they realize the limitations of entry-level accounting software. Handling complex business challenges using fragmented spreadsheets and clusters of disparate applications doesn’t deliver the desired results, which is why companies switch from QuickBooks to NetSuite.

Accounting solutions like NetSuite and QuickBooks are designed to help companies manage their accounting processes, but there is a wide gap in their capabilities. NetSuite Accounting Software is designed with advanced features and functionality that can scale your business, reduce operating costs, automate manual processes, and drive productivity.

NetSuite Overview

NetSuite Accounting Software supports businesses at every growth stage with a unified, cloud-based platform that can provide real-time information and role-based dashboards. NetSuite offers a suite of business solutions beyond accounting, such as CRM, HRM, e-commerce, professional services automation, and more, without additional IT infrastructure.

NetSuite ERP Accounting Software enables revenue and cash flow management, quote-to-order fulfillment, and integrated planning and budgeting. It offers capabilities beyond basic bookkeeping, reducing the need for additional employees.

QuickBooks Overview

QuickBooks Online offers a standalone, cloud-based accounting solution for small businesses. Accurate reporting requires exporting data from spreadsheets and viewing it across multiple platforms.

QuickBooks Enterprise is a desktop program without a cloud offering. It provides basic inventory management but offers limited overall functionality and relies on third-party integrations. QuickBooks Enterprise delivers limited capabilities, driving enterprise users to deploy disconnected point solutions and a complex web of spreadsheets. Inter-company transactions are manual and prone to human error.

NetSuite vs. QuickBooks

QuickBooks is suitable for small businesses because it can manage invoices, pay bills, and track basic cash flows. When your accounting needs are minimal, and you need basic bookkeeping, QuickBooks is a capable solution.

On the other hand, NetSuite offers an end-to-end financial management solution that increases efficiency and automation and can keep up with the needs of fast-growing businesses. NetSuite combines finance and accounting, ensuring real-time access to financial data and improving compliance with financial regulatory requirements.

Revenue Recognition

NetSuite Accounting Software helps accounting teams improve compliance with revenue recognition requirements and build accurate financial statements and forecasts using real-time information. This is especially helpful for companies managing multiple deliverables, requiring accounting teams to recognize revenue at different points. QuickBooks offers clever workarounds for its limitations but complicates the process and impacts visibility.

Billing

NetSuite ERP Accounting Software provides real-time billing and financial activity visibility, improving transparency through consolidated invoicing and automated processes. NetSuite delivers more advanced billing capabilities than QuickBooks, with automated renewals helping to retain revenue and reducing the need for oversight. With NetSuite, you can also combine one-time purchases with recurring services in a single bill. NetSuite also offers flexible billing options with support for promotional pricing and discounted rates.

General Ledger

NetSuite ERP accounting software provides consolidated accounting data and individual transactions, enabling users to customize their GL according to business needs. You can customize transactions across different accounting books, reducing the time and effort needed for account reconciliation, financial close, and auditing. A simple chart of accounts makes it easy to categorize and report transactions. Prebuilt mapping capabilities between the primary and secondary chart of accounts allow you to record activity, and advanced multi-dimensional reporting eliminates complex charts of accounts. QuickBooks offers limited capabilities in comparison and requires users to implement workarounds.

Accounts Payable

NetSuite Accounting Software reduces risk by ensuring better compliance with purchasing and accounting controls and policies. It makes approvals easier when people are away from one another in a global or remote-work environment. Users can automate several tasks, reducing manual data entry errors and, in turn, bill processing time.

NetSuite allows you to control data and user access via role-based permissions. QuickBooks offers limited approval workflows and user roles and doesn’t deliver a robust control environment and segregation of duties.

Accounts Receivable

NetSuite accounting software allows you to manage customer lists, track receivables, and receive payment without entering debit and credit details. Configurable dashboards deliver a real-time view of accounts receivable data, and exception reports flag any anomalies, enabling you to make accurate revenue forecasts. Customers have self-service access to real-time information on purchase orders, inventory, and payments. QuickBooks can create journal entries but can’t handle downloads and schedules.

Conclusion

NetSuite can meet global accounting and compliance standards, while on the other hand, QuickBooks’ limitations mean companies have to rely on other third-party systems for specific tasks. Your finance team has to maintain several different applications, and if they aren’t integrated, they risk errors during data transfer and consolidation among disparate systems. Switching to NetSuite enables businesses to house all their data centrally in NetSuite and run global operations seamlessly. Considering future needs, scalability, and long-term business goals, QuickBooks might work as a stop-gap solution, but NetSuite is future-proof and can keep up with the requirements of high-growth businesses.

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