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Understanding the Key Features of NetSuite Advanced Financials

Businesses need a strong financial foundation to thrive. If your business isn’t prioritizing its finances, it might be going in the wrong direction. To get back on track, consider using NetSuite Advanced Financials. 

It’s a solution that helps you create accurate financial reports, manage budgets, predict future financial performance, improve cash flow, and ensure compliance with financial regulations. In simpler terms, it’s a tool that helps your business manage money more smartly and smoothly.

If you want to learn more about NetSuite Advanced Financials, this blog is perfect for you! It highlights what it is, its benefits, and how your business can adopt it to drive financial growth. 

What Is NetSuite Advanced Financials?

NetSuite Advanced Financials is a specialized toolkit within Oracle’s NetSuite software, tailored for mid-sized and large businesses. It’s basically an upgraded version of the standard software, providing a more comprehensive range of financial management tools.

This tool simplifies financial processes by automating tasks, tracking fixed assets, seamlessly handling various currencies, and providing real-time financial insights. It supercharges financial management, making it more efficient and insightful.

Think of it as an add-on to NetSuite’s ERP system that takes things up a notch. It enhances capabilities by allowing better management of multiple currencies, advanced billing procedures, and even streamlines revenue recognition.

With NetSuite Advanced Financials, businesses can dive deep into their financial performance, simplify accounting tasks, and tackle the complexities of managing finances on a larger scale. It’s like a booster shot for financial management, giving businesses the power to handle their finances with ease and precision.

Why Should Businesses Use It?

Businesses benefit from NetSuite Advanced Financials because it simplifies complex financial tasks like budgeting, forecasting, invoicing, and sales orders. It’s like an all-in-one solution that streamlines essential business functions. 

It’s super handy, especially for companies with intricate financial needs or those looking to automate their financial processes. By using it, businesses save both time and money. Essentially, it’s a helpful tool that makes financial tasks easier, faster, and more efficient for companies of all sizes.

How Can I Determine If I Require NetSuite Advanced Financials?

NetSuite Advanced Financials might be necessary for your business if:

  1. You have complicated billing needs like recurring bills or various revenue recognition methods.
  2. You want to keep track of things beyond money, like customer satisfaction scores or website traffic.
  3. Your sales team needs to handle commissions and incentives.
  4. Your business deals with different currencies.

Key Features of Advanced Financials

1. Advanced Revenue Recognition

NetSuite Advanced Financials makes billing processes a breeze by automating invoice generation with flexible scheduling options. Whether a one-time or recurring bill, this feature seamlessly integrates billing with revenue recognition and sales forecasts. 

Plus, it gives customers the power to manage their billing plans and payment preferences with self-service capabilities. For example, the Incentive Management module aligns billing schedules with sales commissions.

2. Amortization Schedules

This feature automates the creation of amortization schedules for different expenses, such as prepaid costs and job-related spending. It simplifies the distribution of costs over time, especially for intangible assets like patents or copyrights. Users can set up expenses to be amortized based on project completion percentages, ensuring that costs and project progress are perfectly aligned.

3. Budgeting and Forecasting

With NetSuite Advanced Financials, you can easily create, manage, and track budgets in real time. It’s got a user-friendly interface that lets you input budgets, craft new plans, and effortlessly import data from Excel. Plus, you can iterate on budgets for different projects and get insightful reports that compare budget projections to actual spending, allowing you to make prompt adjustments.

4. Financial Reporting and Analysis

This feature gives you complete control over revenue-driven billing processes, supporting both one-time and recurring billing methods. It seamlessly integrates billing schedules with different sales models, making financial management easier. Plus, expense distribution and allocation automation improves accuracy in financial statements.

5. Multi-Currency Management

The module is pretty easy to use because it lets you track non-monetary data within your ledger accounts using statistical accounts. This is super helpful for expense allocation schedules and gives you real-time insights into important non-monetary information. It also helps you create comprehensive reports and income statements to make better decisions. 

Benefits of NetSuite Advanced Financials

NetSuite Advanced Financials is like a super-efficient cloud system for businesses. It helps by saving time, cutting IT costs, and letting you check financial info from anywhere. Here’s how it helps:

1. Time Saving

One of the great things about automation is that it handles all those repetitive tasks, freeing up your team to focus on the important stuff. By automating these manual tasks, you can save a ton of time and effort, which leads to more productivity and efficiency. 

2. Enhanced Data Management

NetSuite’s innovative cloud-based solution securely stores all your transaction information in one central location. So whenever you need it, your data is right there, ready to help you make faster and smarter decisions. With a clear and comprehensive view of your finances, you can effectively monitor your financial health and confidently plan for the future.

3. More Accurate

Using advanced algorithms and error-checking mechanisms prevents those common mistakes that always happen in spreadsheets. This careful attention to detail makes sure that your financial data is always on point, giving you complete confidence in its accuracy and reliability.

4. Supports Different Currencies and Locations

The system is designed to follow specific rules and regulations of different countries, making sure revenue recognition and depreciation are handled smoothly. This comprehensive approach ensures accurate financial reporting and simplifies complex financial processes across various currencies and locations.

5. Seamless Integration with Other Systems

NetSuite easily integrates with various components like Inventory Management and Customer Relationship Management, giving you a comprehensive overview of your business operations. By seamlessly connecting different aspects of your organization, NetSuite empowers you to gain deeper insights and make well-informed decisions about your business.

Allocating Costs in the Advanced Financials Module of NetSuite

Here’s how businesses can allocate costs in the NetSuite Advanced Financials module:

  1. Fixed: This method divides total expenses among departments or projects using a set ratio, like the number of employees or time spent, without changing it.
  2. Dynamic: It splits expenses based on actual usage in real time. Suitable for businesses sharing services and needing costs allocated as they’re used.
  3. Batch: Expenses are divided into groups according to a set schedule made by the admin. It is useful when expenses are allocated in large amounts or on a regular basis.
  4. Intercompany: Divides expenses among two or more companies within the same business group, helpful for businesses with multiple subsidiaries or partnerships.

These methods help businesses divide costs effectively, either based on fixed plans, real-time usage, scheduled batches, or between different entities in the same company group.

What Is the Price of NetSuite Advanced Financials?

The price for NetSuite Advanced Financials varies depending on what your business needs. If you need extra features, there are additional options available. The cost changes based on the edition you choose (Standard, Mid-Market, or Enterprise) and the specific modules or industry suites you add on.

NetSuite is flexible, so you can add or remove modules based on your business needs. However, you can only remove them when your contract is up for renewal.

Getting NetSuite set up can range from $10,000 to $100,000, depending on what you require for your business. It’s all about tailoring the solution to fit your specific needs!

Wrapping It Up

NetSuite Advanced Financials is an excellent choice if you want a complete solution for managing your finances. Its strong features and user-friendly interface benefit businesses of all sizes, improving their financial control.

Are you interested in exploring it? Take that crucial first step toward a more successful future with Folio3. Whether you’re starting fresh or aiming to elevate your business, we provide the necessary tools and expertise for your success.

Get in touch with us today and discover firsthand the power of cloud technology.

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