Introduction NetSuite vs QuickBooks
When your business expands, and your accounting needs become more complicated, you’ll discover that entry-level accounting software has substantial limitations. It’s impossible to solve complex business problems with spreadsheets and a jumble of disparate applications, which is why businesses often switch from QuickBooks to NetSuite. If you’re looking to update your accounting software, you’ll want to know how both QuickBooks and NetSuite will help you meet your company’s needs.
If you’re going to cut operating costs, simplify critical business processes, and improve productivity now and in the future, think about which features and functionality will increase efficiency while also scaling with your organisation.
Although both NetSuite and QuickBooks provide tools to assist companies with their accounting processes, there is a considerable difference in the breadth of features available. Below, we compare NetSuite and QuickBooks to help business leaders determine which accounting solution can best fit their needs now and in the future(opens in a new tab).
About NetSuite, About QuickBooks
NetSuite: With a cloud-based, centralised platform that offers real-time data with customisable fields and role-based dashboards, NetSuite’s financial management system supports companies at every level of development. Beyond accounting, NetSuite provides a full range of business tools to help businesses boost operating performance across the board, including CRM, eCommerce, HR management software (HRMS), professional services automation, and more. It also offers real-time business data and does not require additional IT infrastructure because it is cloud-based.
QuickBooks: Because of its low price, QuickBooks is the first choice for many small businesses looking for bookkeeping tools. Users can keep track of their income and expenses, connect their bank and credit card accounts, and produce financial reports such as income statements and balance sheets. QuickBooks is a stand-alone, cloud-based accounting software. QuickBooks has some inventory management functionality, but it’s minimal in general and depends on third-party integrations for more advanced features. Exporting spreadsheets and displaying data in and through multiple platforms may be needed for detailed reporting.
Feature Comparison of NetSuite Vs QuickBooks
Both platforms can accomplish similar goals and check off some of the same boxes. However, a close examination reveals that there are as many differences as similarities, especially regarding the feature sets’ robustness and completeness. The depth of functionality directly impacts the time and resources needed to complete finance tasks for growing businesses. According to a recent survey of NetSuite customers, superior features and functionality are the primary reasons why CFOs move from QuickBooks to NetSuite. Here are some comparisons of some of NetSuite’s simple-to-use main features.
Recognised Revenue: NetSuite allows accounting teams to comply with revenue recognition standards and plan revenue to be recognised automatically, whether a sales transaction consists of a single event, a sequence of actions over a while, or various forms of deliverables in a package. Financial statements and estimates are up-to-date and reliable. This is particularly useful for software and services companies with several deliverables—such as enhancements, services provided over time, or additional licenses—that enable accounting departments to consider and delay revenue at various times.
Billing: NetSuite allows businesses to see billing and financial operation in real-time. Consolidated invoicing, automated rating systems, and support for multiple pricing models to capture setup fees, licence counts, and variable usage in one step add more transparency. When it comes to subscription billing, NetSuite’s billing capabilities much outshine QuickBooks. Renewals that are automated help to maintain revenue while also reducing the need for manual supervision. Businesses may also set customer-specific pricing and discounting, eliminating the need to control and track subscription adjustments, manually control and track subscription adjustments.
General Ledger: NetSuite’s general ledger (GL) helps you configure your GL to fit your business needs by presenting accounting details from a centralised level down to individual transactions. Users may apply custom GL impact lines to transactions through single or multiple accounting books, such as invoices or vendor bills, minimising the time and effort needed for account reconciliation, period close, and audit processes. A simple chart of accounts makes it easier to categorise and report on transactions at the transaction level, reducing the need to sift through hundreds of lines to see what codes should be applied to which transactions. The NetSuite Multi-Book engine can document all book-specific operation based on a single business transaction from the general ledger, income identification, cost amortisation, depreciation, P&L allocations, and more. Thanks to pre-built mapping capabilities between your primary and secondary chart of accounts, as well as book-specific functional currencies.
Accounts Payable: While QuickBooks lacks purchasing controls, NetSuite’s approval workflow engine mitigates risk by ensuring that purchasing and accounting controls and policies are adhered to. This facilitates approvals when people aren’t sitting next to each other, whether due to different offices or a work-from-home environment. When invoices do not fit purchase orders, users can automate discount estimation and exception processing, reducing manual data entry errors, and the time it takes to process vendor bills. Role and user-based permissions in NetSuite help maintain the separation of duties by monitoring what data and features users can access.
On the other hand, QuickBooks has a small approval workflow and just a few user functions, resulting in a weak control environment and accurate task segmentation. An accounts payable mechanism that requires one person to produce, authorise, and pay a bill, for example, creates an atmosphere ripe for embezzlement.
In conclusion, NetSuite does have the edge over QuickBooks Desktop software, but then the kind of customer base and user-friendly software are all about one or two minor updates here and there. This blog’s whole idea provides you with an in-depth comparison between the NetSuite and the QuickBooks Desktop software. I hope that this blog helps you choose between these two super awesome accounting software.