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Using NetSuite for Working Capital Management

To help organizations improve forecasting and make more strategic cash decisions, Oracle NetSuite today announced SuiteBanking. SuiteBanking, the first integrated suite to bring fintech into cloud ERP, helps clients automate vital financial processes and gain complete visibility into cash flow. By bringing together automated accounts payable and accounts receivable processes, SuiteBanking makes it fast and easy to pay bills, send bills, and receive payments, all within NetSuite.

“Growing businesses cannot afford teams to enter data, negotiate with banks, monitor transactions from multiple systems, and manually process supplier payments. Time is saved by automating these processes. Can be used for strategic projects that drive continued growth for the organization,” said Evan Goldberg, EVP of Oracle NetSuite.

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Improving Cash Flow with NetSuite

SuiteBanking improves cash flow by accelerating the accounts payable and accounts receivable process. Improved automation enables organizations to manage their spending better, increase the effectiveness of their accounting processes, and provide detailed insights in a single system. By providing a unified system, NetSuite no longer needs to collect and normalize data from other departments and systems, saving the finance team dozens of hours each month. Additionally, integrations with banking partners such as HSBC provide NetSuite customers easy access to various financial services, including global digital wallets and virtual payment cards. HSBC, a leading international bank embracing fintech innovation, is his first SuiteBanking alliance partner. With SuiteBanking, NetSuite customers can improve their cash flow processes by:

Accounts Payable:

Help customers speed up their accounts payable process with automated invoice scanning, ledger code assignment, three-way invoice reconciliation, and automated outbound payments. Customers can view multiple payment options and select their preferred method for each provider. For example, you can choose the fastest or cheapest option.

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Account Receivable

It helps customers make on-time payments, reduce pending sales, and improve billing staff efficiency. The new payment link feature makes it easy for customers to receive payments by adding a “pay now” option to their electronic invoices. Multiple payment methods are supported, including credit/debit cards, ACH transfers, and third parties like PayPal. Additionally, customers can automate invoice creation and scheduling and increase collections by automatically sending payment reminders.

Bank Account Reconciliation:

It eliminates error-prone and time-consuming manual tasks and helps accurately match transactions to an organization’s bank accounts. Customers can improve their cash flow visibility by knowing the status of their deposits and withdrawals in real-time. In addition, customers can increase the accuracy of their accounting data by reconciling and reconciling settled transactions more frequently, gaining a better understanding of their current financial position, thus increasing the amount of cash available in their accounts. Always in the know.

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Expense management:

Empower your clients to manage their corporate spending with greater visibility and reporting capabilities. This allows customers to create approval workflows that match their organizational structure, customize expense policy rules, and flag expenses for manager review. Additionally, the Budget Validation feature helps administrators avoid overspending by automatically comparing open purchase requests to available budgets and warning of potential budget overruns before approval. Budget versus actual reports also helps managers manage spending by comparing actual spending to budget in real time.

Spend management:

We help clients manage expenses, enforce internal policies and procedures, and improve the timeliness and accuracy of employee expense reporting. Customers can pay vendors that accept credit cards directly from their NetSuite using their virtual SuiteBanking payment card, extending payment time and freeing up cash flow. Customers can also better manage their business expenses by using virtual cards to cover employee and corporate credit card fees. Expenses are recorded and submitted electronically and flow automatically into NetSuite, eliminating double entries and accounting errors. In addition, customers receive cashback benefits on every transaction when paying using a virtual card.

International payments:

Leverage HSBC’s global footprint and footprint in over 60 countries to make and receive payments from a single account rather than using country-specific payment providers that require separate AP processes. Provide customers with a global digital wallet that can allow customers to make international payments and eliminate the complexities of opening quickly and managing multiple foreign bank accounts.

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Access to working capital:

Help improve cash flow by giving your customers a convenient way to turn unpaid bills into cash. NetSuite provides quick and convenient access to additional working capital through accounts receivable financing.

Using NetSuite to Increase Cash Flow

3 Ways to Increase Cash Flow with NetSuite

COVID-19 has drastically changed the way people do business. On the consumer side, online shopping is more popular than ever before. On the business side, you need to turn things around quickly, maintain strong oversight, and ensure all bills are paid. All of this boils down to having a solid cash flow.

Learn three ways to increase cash flow with NetSuite. , reduce collections, and reduce outstanding bills. The setting method is as follows.

1. Decrease Time to Invoice Using NetSuite Automation

NetSuite’s billing automation tool automatically generates bills on demand. Developed by us,

NetSuite allows you to set up custom workflows or scripts for automatic invoice generation. Or, if you prefer to send the invoice, set up a notification so you can receive the money as soon as possible.

2. Know Your Accounts Receivable

The next important part of cash flow optimization is knowing your accounts receivable. Now that employees work remotely, tracking each transaction is essential, especially when multiple people are involved. NetSuite has a simple solution: the Communications subtab.

View your most recent communications and notes on the Communications subtab on your NetSuite invoice. You may get some answers here if you’re looking for why your bill wasn’t collected.

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3. Follow up with customers

We use NetSuite’s automated workflows to collect cash as quickly as possible. You can set up a workflow to send email reminders when invoices are overdue. The screenshot below shows an example of one of these invoice collection workflows. This workflow will only start after the account is 30 days past due. Then send the initial notification and keep sending emails if the invoice is overdue.

Customers who have automatic email collection will be notified when the collection time is up. It’s improved. And it’s all automated, so you spend less time tracking down your outstanding money

Saving Money on Inventory Management

Another key factor in improving working capital with NetSuite is saving money through proper inventory management. This includes everything from reordering optimization to reviewing NetSuite purchase recommendations. A key issue for companies successfully managing inventory is leveraging data. Optimizing inventory management gives you more working capital. Just let NetSuite automate the process. Josh’s number one advice for inventory management is to stop making non-data-driven decisions and let NetSuite do the work.

Inventory Purchasing Optimization

NetSuite offers several different options for inventory purchasing, so it’s essential to choose the one that works best for your business and be as thorough as possible.

There are two ways to purchase inventory in NetSuite.

Reorder Point – Reorder inventory when a certain quantity is reached. This is considered a reactive method of inventory management.

Time Phases – This is a more advanced method, and we won’t go into detail today. All you need to know is that using demand forecasting is a proactive way to manage your inventory. It considers historical sales forecasts, committed sales, and CRM data from sales representatives.

Whichever option you choose, at some point, NetSuite will tell you what to backorder and when. Even if you’re working from home, this inventory automation can help your team make better and more timely inventory decisions. You can even set up specific inventory reports that you can review to see exactly what’s going on with specific products, locations, and vendors.

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Streamlining Accounts Payable

In addition to inventory management, accounts payable is another key area to focus on in your cash flow optimization efforts. NetSuite Accounts Payable Automation helps you grow your business without adding employees.

1. Negotiate Terms with Vendors

NetSuite easily tracks the terms you have negotiated with various vendors. There are several values ​​that every company must enter on the Financials subtab of the supplier record.

Check NetSuite Vendor Records:

Conditions – Make sure each vendor has conditions set. In this example, condition 2 net 30 is displayed.

Credit Limit – Credit limits should be negotiated with each provider. Here you see a credit limit of $10,000. Adding established terms and credit limits to your NetSuite supplier records helps automate the payment process. For example, NetSuite can automate a 2% discount if you plan to pay within the 30 days specified in your terms.

It may seem simple, but automating this process gives the employee one less thing to worry about. In addition, you can speed up your down payment and reduce overspending.

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  • Purchasing Management

There are two strategic ways to manage purchasing within NetSuite.

Purchase Contracts: Manage Vendor-Negotiated Terms – NetSuite Purchase Agreements allow you to enter terms negotiated with vendors. This keeps acquisition costs down. With NetSuite, you don’t have to worry about the logistics of managing multi-vendor contracts. Simple, easy, and effective!

Managing Spend with Workflow Automation – NetSuite allows you to set up automated workflows regardless of how inventory is purchased through a feature called Order Workflows.

Workflow automation is another great way to control expenses. The following screenshot shows an example of this workflow.

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Items and criteria you can add to a purchase order workflow include: 

  • Order initiation
  • Pending approval 
  • Approved
  • Rejected 
  • Dollar amount thresholds 
  • Item type 
  • Approval from specific managers 

You’ll be amazed at how order workflow can help you manage your expenses and keep your cash.

3. 3-Way Matching

Many customers say that NetSuite’s 3-Way Matching workflow has helped them tremendously. This ensures that your order contains the same data as the goods receipt and invoice from the supplier you are paying for.

For example, NetSuite can flag an invoice for re-approval if costs have increased or if you are purchasing larger than normal quantities. Instead of flying under the radar, it keeps everything within budget.

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