Excerpt: NetSuite applies the software as a service (SaaS) model, where businesses and customers pay a monthly price to access this technology. Still, they are not responsible for system maintenance or underlying infrastructures, such as buying and configuring servers, setting up software, or testing and delivering fixes and upgrades.
To process invoices and business payments, accounting software supplier QuickBooks offers desktop, web, and cloud-based accounting solutions.
Many QuickBooks customers are moderate-sized and small business firms. QuickBooks is preferred by these customers for its simplicity, user friendliness and reporting capabilities.
Both technologies have respective benefits; below are some of the significant comparisons you must know while picking either.
FEATURES ON WHICH NETSUITE AND QUICKBOOKS DIFFER
Revenue Recognition: With NetSuite, accounting teams may plan revenue to be recognized automatically regardless of whether a sales transaction consists of a single action, a series of activities spread out over time, or different types of outputs in a group. Forecasts and financial statements are current, accurate, and verified.
This is especially useful for software and service providers that need to recognize and defer revenue at various times due to multiple deliverables, such as upgrades. These services are provided across time as well as extra licenses. QuickBooks can develop clever workarounds for the limitations, but a maze of manual journal entries and unorganized spreadsheets invariably accompanies these fixes.
General Ledger: NetSuite’s general ledger (GL) offers accounting information at all levels, from the most comprehensive down to individual transactions, enabling you to tailor your GL to your company’s needs. Users can add distinct GL impact lines to transactions, such as vendor bills or invoices across one or more accounting books, saving time and effort during the account reconciliation, period close, and audit processes.
One can add tracking information at the transaction level because multidimensional reporting does not require a complex chart of accounts. On the other side, QuickBooks implements its solution through tags, but only a limited number of titles are quickly used up as users try to create workarounds.
Account Receivable: The fund’s receivable tools in NetSuite let you manage your client list, keep track of your unpaid invoices, and be paid, all without having to enter specific debits and credits. Accounts receivable data like client aging, invoice analytics, recurring bills, deferred revenue, and exception reports that indicate account irregularities are available in real time through configurable dashboards and reports.
Although it can handle downloads and schedules, QuickBooks cannot create journal entries.
Account Payable: While NetSuite’s approval workflow engine lowers risk by guaranteeing that purchasing and accounting rules and policies are followed, QuickBooks doesn’t offer any purchasing controls.
Because approvals are more manageable when people are not seated next to one another, this is true whether there are multiple workplaces present or people are working from home. By automating discount calculation and exception processing when invoices do not match purchase orders, users can decrease human data entry errors and processing delays for vendor bills.
NetSuite assists in enforcing the distinction of tasks; it limits user access to data and functionality via role- and user-based permissions. In contrast, because of its limited approval workflow and limited user responsibilities, QuickBooks only offers a minimal control environment and a partial division of activities. For instance, a system for accounts payable that enables a single individual to produce, authorize, and pay a bill fosters an ideal embezzlement environment.
Lead Management and Fixed Asset: NetSuite supports alternative accounting methods, meets the new reporting and accounting requirements for leased assets. This includes setting up for income statements and balance sheets, amortization schedules can be used to separate rental expense from interest expenditure.
These fixed asset or lease management tools are not available in QuickBooks.
Inventory Management: Businesses can see their inventory thanks to the NetSuite inventory management tool. NetSuite inventory management eliminates the need for manual processes by automating the real-time tracking of inventory levels, orders, and sales throughout the inventory lifecycle. It also provides the insights necessary to make data-driven decisions, maximize sales, and exert more control over their business. There are also capabilities for warehouse management, like inventory counts, pick, pack, and ship, integrated barcoding, and multi-order picking.
Reporting: NetSuite and QuickBooks offer standard accounting reports like P&L and cash flow. However, real-time information, from revenue projections to consolidated parent and subsidiary reports, is available in NetSuite’s vast library. NetSuite’s multicurrency capabilities allow you to report in the local currency of your subsidiaries.
NetSuite easily enables detailed drill-down and drill-across reporting for every record in the database. With configurable views for reports from departments, locations, product lines, and various operational viewpoints, NetSuite reports do away with static reporting.
BUSINESS IN NETSUITE AND QUICKBOOKS
1. When it comes to regular bookkeeping, QuickBooks may check off a lot of boxes. Still, NetSuite provides a comprehensive financial management solution that boosts productivity and eliminates the need to recruit staff as the business’s financial markets become more varied and sophisticated. NetSuite offers predefined KPIs, workflows, reminders, and customizable dashboards that demonstrate precisely how operations and accounting processes match and what has to be done. It is more than just a collection of accounting data.
2. Core accounting and finance operations are combined with effective compliance management in NetSuite. When you have immediate access to financial data, you may quickly produce statements and disclosures that satisfy many financial regulatory standards.
3. NetSuite and QuickBooks can be used for bookkeeping and accounting tasks. A complete package, called NetSuite, provides capabilities like an e-commerce platform, an enterprise resource planning (ERP) tool, and a customer relationship management (CRM) tool.
4. Invoicing, mileage tracking, and payroll are just a few of the most specific accounting duties that QuickBooks is utilized for. Although each application has advantages and disadvantages, NetSuite is generally regarded as the more capable and reliable of the two. When you require a complete business management solution that can handle every aspect of your company, from accounting to CRM and e-commerce, use NetSuite. Use QuickBooks if you only need a straightforward home accounting tool for payroll and invoicing.
5. The cost of NetSuite is higher. Although you must speak with their sales team to get a personalized price, you should budget for an annual license charge and an implementation fee for your initial setup. The number of users, the platform you select, and the number of modules your company needs will all affect your budget.
WHICH IS PREFERABLE?
Although QuickBooks Online Advanced may be preferable in some situations, NetSuite is the undisputed champion for companies that have advanced past the scruffy startup stage.
User permissions can be customized entirely in NetSuite:
A sales associate should have access to only some of the data available to a sales manager, and an accounting clerk should have different capabilities than your corporate controller. While NetSuite enables you to establish roles for each employee and tailor permissions for those roles, QuickBooks Online Advanced only lets you set high-level user permissions from predefined roles. This makes it simpler to protect vital information for your company.
Each user is given dashboards by NetSuite that are appropriate for their position:
You can design unique dashboards in NetSuite for each job in your company. These dashboards feature an essential reminder list to help you or your team stay on target and the critical performance indicators pertinent to that function.
Although your company’s revenue has increased, its complexity has not:
Use QuickBooks Online Advanced instead of NetSuite if you don’t require extensive inventory management requirements or a multi-person team with finely segmented roles. Compared to QuickBooks Online Plus, QuickBooks Online Advanced will give you more flexibility and room to expand. However, you’ll still be able to run your more significant business successfully thanks to an extended chart of accounts, more financial reports, and the option to incorporate paid third-party apps.
You need an internal accounting team: It will be far simpler to find accountant help for QuickBooks than NetSuite since accounting firms concentrate on the software most clients use because accounting talent is in limited supply.
Your internal bookkeeper needs to learn more about accounting: Both non-accountants and accountants can utilize QuickBooks Online Advanced. On the other hand, NetSuite will function most effectively if the bookkeeper or accountant has more accounting experience.
Despite certain fundamental similarities, NetSuite and QuickBooks were created for various customer categories. Whereas QuickBooks is appropriate for independent contractors, small businesses, sole proprietorships, and mid-level corporations that need accounting software with specific complex capabilities, such as Inventory management, Payroll, Expense tracking, Profitability reporting, etc. However, for multi-location companies, growing companies, and large enterprises that require sophisticated features at a unified level with a high level of authenticity and security, NetSuite is a must-have piece of software.