05 Jul The Perks of Implementing NetSuite Advanced Financials for your Business
The Perks of Implementing NetSuite Advanced Financials for your Business
Automate the Manual Processes associated with billing your customers.
Financial Management is the backbone of any enterprise. It is one of the crucial aspects to function well in any organization. Financial Management is all-inclusive – it consists of systematic planning, coordinating, controlling, managing, and monitoring financial activities within a company to increase profits. It also involves the procurement of funds and their proper utilization. Financial management addresses overall financial concerns related to account management, payments, and associated risks.
The accounting department needs essential tools to efficiently manage financial records and support business growth. Advanced Financial Management is a solution that offers complementary services to NetSuite. It provides solutions for expense allocation, amortization, statistical accounting, flexible billing management, improved budget management, and reporting. It is a one-stop software that brings together all the key business functions into one.
NetSuite Advanced Financials makes it easy to plan budgets and manage your expenses accurately. It also reduces the difficulties of your billing, helping the finance department.
Advanced Financials from NetSuite
The Advanced Financial Features That Increase Visibility of Your Financial Operations:
BUDGET MANAGEMENT AND REPORTING
Finance teams use budget management and reporting to monitor the allocated budget vs the actual spend.
- Helps in following up and keeping track of your budgets.
- A single interface enables easy entry of the budget for accounts.
- The Copy Budget Feature can make a copy of a budget based on another budget or can import an Excel sheet of the existing budget.
- You can create a budget in Excel and export it to CSV.
- Multiple Budget Features can simplify your budgeting process. It allows for the creation and management of multiple budgets at once.
- Provides a Budget Income Statement and a Budget vs. Actual Report that help create one’s own distinct budget reporting.
ADVANCED BILLING MANAGEMENT
Business owners charge their customers at decided intervals (e.g. Monthly, monthly, quarterly, annually) or at once for the products or services they offer.
Advanced Billing provides customized billing schedules and automates invoice generation.
- It lets users take complete charge of billing processes. It can manage billing both one–time and on a recurring basis.
- It also allows you to bill your customers on different payment terms g. charging customers in advance or splitting charges over a given period.
- It comes with integrated revenue recognition functionality to easily set up billing schedules. It supports generating invoices for various types of sales, e.g., billing plans based on installments or bills that require advance payment.
- Billing schedules are flexible. Billing cycles are applicable to the entire sales order or each item of the sales order. Users can conveniently create billing schedules on the sales order.
- Advanced billing management enables the integration of billing schedules with a sales forecast. With this, your upcoming bills can be spread over a period depending on the billing schedules.
- It even offers an easy self-service facility that lets the clients manage their information, individual billing plans, and payment method options.
- When combined with the Incentive Management module, you can link billing schedules to sales commissions and forecasts to get visibility of future finances.
AMORTIZATION SCHEDULES
Amortization of expenses is the process of distributing the cost of intangible assets over their useful lives. Intangible assets are not present physically, e.g., Patents, Trademarks, Copyrights, etc. They do not have any resale value. This distribution of costs results in the remaining balance of that asset decreasing over the set period. It gradually lowers the book value of intangible assets.
- The NetSuite software helps businesses automate amortization schedules over the period.
- It enables the Amortization schedules to be linked to jobs. The expenses are amortized proportionately to the percentage of job completion. Amortizing helps in matching the value of an asset to the revenue generated by that intangible asset.
EXPENSE ALLOCATIONS
To determine the total cost of a cost object and ensure accurate accounting, indirect expenses are to be considered. The company can allocate indirect expenses, such as labor, rent, utilities, and office stationery, to estimate the full cost in the financial statements.
- With NetSuite Advanced Financials, there is no need to assign the expenses to classes, departments, items, locations, etc. You can easily enter expenses and later allocate them using a weighted formula.
- You can use the Allocation Schedules once, or run them to repeat the schedule on a regular basis.
- There are Dashboard Reminders that can inform you when to process your active allocation schedules.
- Once you review, you can click and create a journal entry for schedules.
STATISTICAL ACCOUNTS
Statistical Accounts are non-monetary accounts to store the statistical information of different parameters.
- The Statistical Accounts feature of the Advanced Financial module helps finance teams to track critical non-monetary values and data such as headcount, common shares, and workspace. It then uses that information in reports and income statements.
- Automatically allocates non-monetary costs like overhead costs, rent expenses, etc., of the businesses
- Can run multiple allocation schedules in given sequences.
The Benefits of Advanced Financials to Businesses
- Enterprises can monitor budget vs actual in real-time to make sure budgets do not go out of control.
- Automating key processes such as Amortization and Expense allocation reduces manual effort and errors, improving productivity.
- Management can manage multiple budget records, including department, project, location, or item. Gives visibility and better financial controls.
- Automating the billing process helps save manual time.
- Improve productivity through automated expense allocation and amortization.
NetSuite Advanced Financial offers add-on features to its standard CRM and ERP modules. In addition to its core features, the additional services in NetSuite Advanced Financials make it the best fit for any enterprise in financial management.
RevGurus a NetSuite Alliance Partner will help you to transform your business. We have a team with a strong technical background and good integration experience. Our financial team comprises qualified chartered accountants. We have certified NetSuite ERP Consultants who are authorized in ARM and Multi-Book, too. We provide end-to-end solutions that help companies leverage NetSuite. Having successfully delivered projects for various SMBs and Fortune 500 Enterprises, we can help you to transform your business processes with NetSuite.