At a glance: NetSuite vs. QuickBooks
Understanding the differences between QuickBooks and NetSuite
Authored by RSM US LLP
Many small to medium-sized businesses utilize QuickBooks or similar software packages to manage their accounting function and maintain financial records. The software is available through many retailers, is simple to install and provides a higher level of functionality for businesses beyond the company checkbook. However, as companies grow, these solutions may cease to meet business needs as the environment changes and stakeholder and regulatory demands increase.
The next step beyond QuickBooks is one of the many mid-market enterprise resource planning (ERP) solutions, like Oracle NetSuite, that are available through trained implementation firms. These ERP products represent a more comprehensive platform to run the entire business, instead of a narrower focus on just the accounting function
What is NetSuite?
NetSuite is a cloud-based solution that can support your business at every stage of growth. It’s been developed as a true business suite, encompassing accounting, customer relationship management (CRM), human resources, commerce, professional services automation and more.
When it comes to NetSuite vs. Quickbooks, the major difference is that NetSuite is designed as a comprehensive business solution that includes accounting functionality, whereas Quickbooks is an accounting-only solution.
Here are some other critical functions where QuickBooks requires an add-on or has limited functionality:
- Multientity consolidation
- Chart of accounts flexibility
- Drill-down and drill-through reporting
- Segregation of duties and audit trail
The shift from QuickBooks to a more comprehensive ERP system, like Oracle NetSuite, is a significant effort to undertake, but it is a necessary process for growing businesses. Continuing to utilize a software package that does not fit the needs of the company could have several adverse effects, such as constraining growth, the failure of systems, fraud, and inaccurate, insufficient business data.
As an example, consider Paro Services, a client that recently underwent the shift from Quickbooks to NetSuite.
Paro Services was concerned about the ongoing viability of the ERP systems at its subsidiaries. One of its subsidiaries, DeForest, utilized a legacy ERP platform that was nearly 30 years old. As the company grew, it required new software that made more sense for the company’s business model. In addition, Paro Services needed to transition another of its subsidiaries, Innoleo, from its QuickBooks system to an ERP platform with more visibility and functionality. Read the entire case study to learn how RSM helped the company switch to NetSuite.
With the number of variables involved, the right advice and support can make all the difference in a transition to a new ERP solution. The process should be planned and evaluated carefully by company executives and an experienced implementation partner to help ensure that the ERP system selected and implemented can handle current and future expectations, and encourage growth within the organization.
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This article was written by RSM US LLP and originally appeared on 2021-09-24.
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