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NetSuite versus QuickBooks. Which is better, NetSuite or QuickBooks?

NetSuite versus QuickBooks

As your business expands and your accounting needs become more complex, you’ll find that entry-level accounting software has evident limitations. Using spreadsheets and clusters of various apps to handle mature business concerns is a waste of time, which is why many firms migrate from QuickBooks to NetSuite.

If you’re considering a change in your accounting software, it’s important to know how NetSuite and QuickBooks compare. To reduce operational expenses, automate important business operations, and increase productivity, both now and in the future, you should examine which features and functionality will both increase efficiency and scale with your company.

There is a huge feature gap between NetSuite and QuickBooks, although both are meant to help businesses manage their accounting procedures. Our comparison of NetSuite vs. QuickBooks will help executives make an informed decision about which accounting software will best serve their needs both today and in the future.

It’s important to note that NetSuite is a company management application that contains full-featured accounting capability, so businesses don’t have to handle several systems or applications like they do with QuickBooks. However, for the sake of this comparison, we’ll concentrate on the accounting features.

QuickBooks Online :

QuickBooks is often the first choice for small businesses looking for bookkeeping software due to its inexpensive cost. It tracks income and expenses, links bank and credit card accounts, and generates income and balance statements.

QuickBooks Online is a standalone cloud-based accounting product. QuickBooks Enterprise provides certain inventory management functions, however, they are restricted and need third-party integrations. Detailed reporting may necessitate spreadsheet exports and data viewing across platforms.

NetSuite :

NetSuite’s financial management system provides real-time data with customizable fields and role-based dashboards for enterprises of all sizes. Beyond accounting, NetSuite offers a whole range of business solutions including CRM, e-commerce, HRMS, professional services automation, and more. Because it is cloud-based, it gives real-time business data with no additional IT infrastructure.

In addition to cash flow and revenue management, NetSuite offers integrated planning and budgeting. It goes beyond basic bookkeeping and offers features that can cut headcount. It can also operate your entire business.

The advantages of each:

Both NetSuite ERP and QuickBooks Online have certain similarities on the surface, but they are built for distinct types of customers.

QuickBooks Enterprise Overview

For users who want to take their QuickBooks Enterprise off-premises, they can pay a third-party hosting business, but this adds another vendor to manage and does not supply all of the cloud benefits. Inter-company transactions are manual at best, with lots of room for error.

Subscription billing, revenue recognition, asset management, and multidimensional reporting are not automated or solved by QuickBooks Enterprise. Enterprise users must rely on several point solutions, resulting in inconsistent reporting, human rework, redundant processes, and ever-growing Excel spreadsheets.

To reduce complexity, QuickBooks Enterprise uses a hard-wired chart of accounts, which limits the ability to collect transactions and organize them into your financial structure of assets, liabilities, revenue, and costs.

QuickBooks Versus NetSuite

Paying bills, handling invoices, and tracking cash flow are all features of QuickBooks that some small businesses need. Generating monthly and annual reports and aiding with annual business taxes is sufficient when only bookkeeping is required.

While QuickBooks can do basic bookkeeping, NetSuite provides a comprehensive financial management solution that lowers the need for additional staff as the company’s financial needs grow. NetSuite has pre-configured KPIs, workflows, reminders, and customizable dashboards that indicate how operations and accounting processes match and what needs to be done to ensure success.

NetSuite simply does more.

NetSuite integrates core finance and accounting with strong compliance management. If you have access to real-time financial data, you can drill down into specifics to swiftly develop reports that meet ASC 606, GAAP, SOX, and other criteria.

Feature Comparison Between NetSuite and QuickBooks.

Both platforms may fulfill comparable functions and check similar boxes. But a closer look reveals more differences than similarities, especially when it comes to the feature sets’ robustness and completeness.

A recent NetSuite customer survey demonstrates that greater features and functionality are the major reasons why CFOs switch from QuickBooks to NetSuite.

Here are some instances of how NetSuite’s core features compare.

Amounts Recognize:

NetSuite enables accounting teams to comply with revenue recognition rules and schedule revenue to be recognized automatically. Financial statements and forecasts are real-time.

Accounting teams must recognize and defer revenue for numerous deliverables such as upgrades, services given over time, or new licenses. Workarounds for QuickBooks’ constraints can be smart but often result in a mess of manual journal entries, confusing recognition schedule spreadsheets, and ambiguous or nonexistent future vision.

Billing:

NetSuite provides real-time billing and financial visibility. Consolidated billing, automatic rating, and numerous pricing models allow multiple pricing models to collect setup fees, license counts, and variable consumption in one step.

Subscription billing is when NetSuite outperforms QuickBooks. Automated renewals save time and money. Businesses can also schedule subscription changes and set customer-specific pricing and discounts.

NetSuite SuiteBilling can mix one-time purchases with recurring services, such as a phone, activation fee, and first month of service. SuiteBilling also offers fixed-rate (annual, multi-year, and monthly) and consumption-based subscription billing. You can also alter contracts, cancel subscriptions, or put them on hold and reactivate them.

Ledger:

NetSuite’s general ledger (GL) allows you to tailor accounting data from consolidated to individual transactions. Custom GL impact lines can be added to transactions across single or many accounting books, speeding up account reconciliation, period close, and audit processes.

To code transactions, a simple chart of accounts eliminates the need to look through hundreds of lines of coded transactions. The NetSuite Multi-Book engine can record all book-specific activities based on a single business transaction from the general ledger, revenue recognition, expense amortization, depreciation, P&L allocations, and more.

Multidimensional reporting reduces the requirement for a complex chart of accounts and allows for transactional tracking. QuickBooks’ approach uses tags, however, there are only a limited amount of tags, and users quickly exhaust them.

Payables:

Because NetSuite’s approval workflow engine ensures that purchasing and accounting controls and policies are followed, it reduces risk. This helps when workers aren’t seated next to each other due to numerous offices or working from home. When invoices do not match purchase orders, users can automate discount computation and exception processing, reducing manual data entry errors and processing time.

Role and user-based permissions in NetSuite help ensure division of duties. QuickBooks, on the other hand, has a limited approval workflow and user roles, resulting in weak control and job segregation. For example, an accounts payable process that allows one person to create, authorize, and pay a bill invites fraud.

Receivables:

You can manage your customer list, track your receivables, and collect payments with NetSuite’s accounts receivable services. Accounts receivable data such as client aging, invoice analysis, recurring bills, deferred revenue, and exception reports that identify account irregularities are available in real-time.

You can also give customers self-service access to purchase orders, inventory, and payment data. This streamlines payment by emailing invoices with multiple payment choices. QuickBooks can enter transactions but not downloads or schedules. With NetSuite Advanced Revenue Management, you can easily forecast and report revenue from contracts. As performance commitments are met, forecasted revenue becomes recognized revenue.

Manage fixed assets and leases:

You may track depreciating or nondepreciating firm assets from creation to depreciation, revaluation, and disposal. It is now easy to keep track of all capital assets, including acquisition expenses and asset status.

NetSuite also supports numerous accounting treatments for leased assets, including amortization schedules and segregating interest expense from the rental expense on balance sheets and income statements.

QuickBooks lacks fixed asset and leasing management features.

Inventory Control:

NetSuite inventory management provides inventory visibility. Automating real-time tracking of inventory levels, orders, and sales throughout the inventory lifecycle allows NetSuite users to make data-driven decisions, maximize sales, and gain greater control of their business. Inventory counts, pick, pack, and ship, integrated barcoding, and multi-order picking are provided.

Reporting:

They both have standard accounting reports like P&L and cash flow. Aside from revenue forecasting, NetSuite’s extensive library includes real-time reports. With NetSuite’s multi-currency capability, you may report in the currencies of your subsidiaries’ countries.

Simplicity drill-down and drill-across reporting in NetSuite for any record in the system. There are no more static reports in NetSuite, providing you the option to see reports from a department, location, product line, or any number of

Why Should You Use NetSuite as Your ERP System?

As you grow, you recruit more personnel, process more data, and require more automation. You need accounting software that boosts efficiency and supports your growing firm.

Consider Brex, a financial firm that migrated to NetSuite to prepare for international expansion. Using QuickBooks and Excel, executives had to manually pull monthly depreciation and amortization reports.

Controller Kevin Moore said the month-end process is now a one-button push.

To supply corporate credit cards to startups, Brex also leverages NetSuite to secure worldwide accounting and compliance requirements.

However, QuickBooks’ limitations necessitate other systems or applications for revenue management, fixed assets, procurement, order management, billing, inventory management, services delivery, and other functions. These add up. Because each system has its setups and end-to-end processes, your financial team must manage half a dozen distinct apps, causing errors in data transfer and consolidation.

Inflection points exist where current processes simply won’t work, says Sy Gray, co-founder of popular consumer packaged products company Honey Pot Company.

Gray and his co-founder tried to link QuickBooks order details with their company to meet EDI requirements from big-name retailers like Target. After numerous failed attempts and mounting costs, the company migrated to NetSuite.

By automating the conversion of purchase orders into invoices, Honey Pot will be able to better support its 20,000 retail locations worldwide. Suite Success Financials First makes QuickBooks to NetSuite migration straightforward. Consider existing demands and scalability while deciding whether to update. Even if Quickbooks works as a temporary fix, will it fulfill your needs as your business grows?

Pricing

While NetSuite and QuickBooks share many capabilities, NetSuite ERP delivers enterprise-level solutions that QuickBooks Online does not.

In terms of pricing, NetSuite and QuickBooks are vastly different.

NetSuite ERP pricing:

The NetSuite pricing model is similar to many enterprise-level business solutions. Instead of listing pricing on their website, you must contact NetSuite directly to work out a plan (and price) that works for your company.

The price of NetSuite ERP software varies depending on your company’s size, features, product bundles, number of users, etc.

The cost of NetSuite cannot be determined without working with them, although online reviews place the monthly cost at roughly $1,000.

QuickBooks Online pricing:

QuickBooks Online price is significantly simpler. QuickBooks software is priced on a monthly subscription basis based on your plan:

  • Simple Start: $25/mo
  • Monthly: $50.
  • Plus: $80/mo.
  • Advanced: $180/mo.

QuickBooks also has premium add-ons like QuickBooks Payroll and Tsheets that you may add on for a monthly fee.

While the QuickBooks Online Advanced plan is frequently regarded as pricey for small-business accounting software, any of the four QuickBooks Online plans will be far less expensive than NetSuite ERP.

Alternatives to consider

For those who are contemplating whether or not NetSuite ERP is the right fit for their company, there is an in-between option: QuickBooks Online. As a result, your company has a few other choices that may be more suitable.

How QuickBooks Online compares

Read more about how QuickBooks Online stacks up against the competition.