Last Modified: August 24th, 2021
4 min read
Software companies choose a cloud ERP/financial suite that will help them cope with changes caused by their exponential growth. They need a cloud ERP/financial suite that provides vital capabilities for an excellent foundation making the business future proof. With the shift from a perpetual license to a subscription-based model, this has become essential. Back then software companies only focused on one-time delivery of commitments. Now, they also have to expend bandwidth managing updates, technical support for maintenance and full software upgrades.
NetSuite is capably designed to support software companies undergoing fast-paced growth. Since the market explosion of Salesforce in 2003, the business world has recognized that SaaS companies provide the future for all industries. From start-ups, midsize and large enterprise-sized SaaS companies, NetSuite delivers increased efficiency, improved visibility and the elimination of manual, ineffective and costly business processes. The NetSuite goal is to provide an extensive global financial and accounting system by offering anywhere access, automatic software enhancement updates and carried over customizations. This system supports companies while eventually allowing them to abandon disruptive disparate systems.
NetSuite Helps SaaS Companies Facing Hyper-Growth
As the business expands its scope of services and eventually its market, more operational requirements come into place. These requirements not only pertain to managing subscriptions and customers but also to the complex business processes such as forecasting, procurement, revenue recognition, recurring revenue streams and specialized pricing models. These business processes may initially work in the early stages of company development but as it expands, their conventional method of execution becomes unsustainable which leads to hindering the growth of the organization. This is because spreadsheets and ad-hoc standalone applications only makes data consolidation between departments difficult as data becomes error prone.The following are NetSuite features that solves hyper-growth complexities
- The system’s versatility in easily adapting to changes brought when transitioning from a small privately held company to a publicly held global organization. This also provides an extremely efficient back-office systems foundation.
- Flexibility in solving revenue recognition scheduling difficulties while supporting all current standards and complying with the evolving guidelines of ASU 2014-09.
- NetSuite’s accounting functionality plus strong compliance management removes burdensome processes like spreadsheets and manual reconciliation resulting to the acceleration of the financial close process.
- It’s creativity in making the most out of customer’s existing CRM system by allowing its seamless integration into NetSuite for a fully automated lead to close won process.
NetSuite Provides Future Proof Solutions
Many decision makers take long to realize that their financial landscape is already changiang. Their accounting and financial system based on subscriptions is far different from the conventional perpetual license model. At this time they will also realize that spreadsheets, manual processes and other conventional disconnected systems are already time consuming and error-prone. Thus, if they continue to practice the same, their heavy reliance on manual processes, they will not be able to sustain or cope with their rapid growth leaving them unable to scale effectively or never at all. However, the good news is that it’s never too late to start adapting to these drastic changes as NetSuite has a lot in-store for these rapidly growing companies.
Aside from financial management benefits, SaaS companies can very well enjoy NetSuite’s Cloud-based system model as they also are kept from maintaining costly and inefficient hardware and networking infrastructure. Also, NetSuite provides real-time data insights that SaaS companies require as a good foundation that enables flexibility, agility and visibility. Its real-time data insights that allows SaaS companies to make important course corrections, and the powerful SuiteCloud platform empowers them to configure and customize NetSuite to meet further specific needs.
NetSuite comes with features that effectively help mature companies:
• Comprehensive Financial Management and Revenue Recognition Capabilities
NetSuite gives SaaS companies all the tools needed to manage revenue recognition and billing schedules while ensuring compliance. SaaS companies can eliminate double entries and manual reconciliations with a single financial system that manages accounting, complex billing, and revenue recognition.
• Recurring Revenue and Subscription Management Tools
Manage recurring revenue streams with powerful solutions for both SaaS and perpetual license providers. Automate contract renewals, streamline management of term and evergreen subscriptions, facilitate change orders/co-termination, and gain support for upsell and cross-sell activities.
• Global Business Management and Consolidation
Seamlessly manage multiple currencies and reporting as your business expands globally. NetSuite One World provides global accounting and consolidation, award-winning multicurrency management, a configurable tax engine, and comprehensive language support.
• Regulatory Compliance
NetSuite simplifies compliance with GAAP, FASB, SEC, and AICPA regulations and standards. It also facilitates SOX Section 404 compliance by supporting internal controls and enabling individual accountability through a complete audit trail of all processes and transactions.
• Professional Services Automation
Take advantage of all the tools needed to leverage resources, manage projects, and deliver profitable quality services to your clients. And because NetSuite solutions are run in the cloud, your consultants can take advantage of online and mobile access to work where and when they want.
• Industry-Leading Customization
NetSuite believes that customers should be able to configure their systems with minimal IT and developer efforts. Their SuiteCloud platform provides powerful tools to tailor and integrate NetSuite for your unique business needs and ensures that your customizations migrate when upgrading to a new release.