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  • Writer's pictureZabe Siddique

Benefits of NetSuite for Your SaaS Company's Accounting Team

Updated: 1 day ago

Key Points

  1. NetSuite's Cashflow Management tools help SaaS companies to accurately forecast incoming and outgoing cash across all entities and bank accounts.

  2. NetSuite's Budget Management functionality makes it easy to create budgets, manage adjustments and review spending at the GL level.

  3. NetSuite's flexible GL allows SaaS companies to structure their chart of accounts in a way that suits the needs of their industry.

  4. The Bank Reconciliation tool in NetSuite helps SaaS companies to create rules and matching criteria to simplify transaction reconciliation.

  5. OneWorld makes it possible to manage complex entity structures, including inter-company transactions.

If you're running a software as a service (SaaS) company, then you know how important it is to have a good accounting team in place. Not only do they need to be able to manage your finances and keep track of your income and expenses, but they also need to be experts in billing and invoicing. And if you're using NetSuite as your accounting application, then you're in luck. Here are some of the benefits of using NetSuite for your SaaS company's accounting needs:

NetSuite is designed for businesses that sell subscriptions. This means that all of the features and functionality are geared towards making it easy to track your recurring revenue and manage your billing and invoicing.

NetSuite's subscription management features make it easy to set up and manage your recurring billing, so you can automate the process and free up your accounting team's time for other tasks.

NetSuite's Financials module gives you powerful tools for managing your finances, including cash flow management and forecasting. This can give your accounting team the insights they need to make better decisions about how to allocate your resources.

NetSuite's reporting and analytics features give you visibility into all aspects of your business, including your subscription revenue, customer churn rate, and more. This can help your accounting team identify trends and areas of opportunity.

Key Features of NetSuite for the SaaS Industry

Cashflow Management

SaaS companies know that cash is king. Without a steady stream of cash coming in, it can be difficult to keep your business afloat. This is why cash flow management is so important for SaaS companies.

Cash flow management software can help you to keep track of all the money coming in and going out of your business. This type of software can give you visibility into your accounts receivable and payable, as well as helping you to automate the payment process.

In addition, cash flow management software can also help you to avoid late payment penalties from suppliers. This is because the software can help you to keep track of all outstanding invoices and payments. By paying your invoices on time, you can avoid costly late payment penalties that can eat into your profits.

Budget Management Software

As a SaaS company, it is important to keep a close eye on your budget. This is because even small changes in your expenses can have a big impact on your bottom line. Budget management software can help you to keep track of your income and expenses, as well as helping you to plan for future expenses.

This type of software can be especially helpful if you are expanding your business or launching a new product. By having a clear understanding of your budget, you can make sure that you have the financial resources available to make your expansion a success.

Another benefit is that budget management software can also help you to track your progress toward financial goals. This can be helpful in keeping you motivated and on track as you work to grow your business.

General Ledger

SaaS companies know that accurate financial reporting is essential to your success. General ledger software can help you to keep track of your financial transactions and produce accurate financial reports. This type of software can be used to track income, expenses, assets, liabilities, and equity.

General ledger software can be an invaluable tool for SaaS companies of all sizes. By having accurate financial reports, you can make sound business decisions that will help you to grow your company. In addition, this type of software can also help you to detect and prevent fraud.

Bank Reconciliation

Bank reconciliation is the process of matching your bank statements with your records. This is important for SaaS companies because it can help you to catch errors and again prevent fraud. Bank reconciliation software can help you to automate the process of reconciling your bank statements.

This type of software can be an invaluable tool for SaaS companies. By automating the reconciliation process, you can save time and ensure that your financial reports are accurate.

Intercompany Transaction Automation

Many SaaS companies operate globally, which means you likely have transactions with other companies. Intercompany transaction automation software can help you to automate these transactions. This type of software can be used to track sales, purchases, and invoices. In addition, the software can also help you to manage currency conversions and exchange rates.

Revenue Recognition Management

One of the biggest challenges when managing the accounting process for SaaS companies is accurately recognizing revenue in line with Generally Accepted Accounting Principles. This is because revenue recognition involves more than just invoicing customers. In order to properly recognize revenue, you must also take into account things like the length of the contract, customer churn, and transactional timing of recognizing subscription revenue, especially when contracts are annual, rather than monthly in advance.

Interested in How NetSuite Can Help Your Growing SaaS Company?

If you're looking for an accounting software that is designed specifically for SaaS companies, then NetSuite is a great option. It offers all the features and functionality you need to manage your finances, billing, and invoicing, and its reporting and analytics tools can give your accounting team the insights they need to make better decisions. Contact us today to learn more about NetSuite and how it can benefit your SaaS company.

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