NetSuite ERP and QuickBooks are both well-established softwares that are designed to help businesses with their accounting operations, however, there is a tremendous gap when it comes to their functionality and features. In this comparison, we will take an in-depth look at the accounting software features to check how QuickBooks compares with NetSuite ERP.
Keep this guide handy, if you’re a current QuickBooks user as soon, you will realize the need to switch to a modern accounting solution.
One of the crucial reasons why businesses upgrade from QuickBooks is because entry-level accounting software possesses many limitations that are filled with manual processes. Handling a growing enterprise with myriad spreadsheets and external applications without integrations is inefficient and therefore businesses choose to upgrade to the next tier.
Note: NetSuite ERP is a full-fledged Enterprise Resource Planning (ERP) Solution that includes Business Accounting functionality along with a wide array of other features. Due to this, businesses using NetSuite often use this single solution to manage all the aspects of their business. However, as QuickBooks (QuickBooks Online/ QuickBooks Enterprise) is primarily an accounting solution, we will only compare NetSuite Accounting features with that of QuickBooks.
NetSuite is a complete cloud-based business financial management solution that can run your entire business and its operations at every stage while providing real-time advanced reporting into business data with customizable fields and role-based dashboards. Apart from that NetSuite also offers an entire suite of business solutions spanning beyond standard Accounting. Operations such as CRM, Human Capital Management, Inventory, Supply Chain, eCommerce and more can be managed conveniently via NetSuite. Due to these features, businesses prefer operating on NetSuite as all functions can be carried within a single solution, eliminating the need to handle multiple IT systems.
NetSuite is an end-to-end business accounting software that enables cash flow and revenue management, automatic quote to order fulfillment and a feature for integrated planning and budgeting. NetSuite can be customized as your business grows, making it a perfect system for growing businesses and enterprises alike.
Quickbooks Online Overview
QuickBooks seems like a good option for new businesses looking for bookkeeping software as its starting price is low. With QuickBooks accounting tools, users can track business income, expenses, connect banking systems, credit cards etc. Apart from that, users can also create financial reports like income statements, balance sheet reports etc. for financial reporting and more.
It is important to note that QuickBooks Online is strictly an accounting solution, however, it does come with the basic functionality to manage inventory. But it is very limited and 3rd party integrations must be performed to get the desired functionality.
Quickbooks Enterprise Overview
As the name suggests, QuickBooks Enterprise is a desktop program that lacks a true cloud presence and support. Users have to manage the on-premise solution unless they decide to opt for a 3rd-party hosting platform that will make their QuickBooks Enterprise solution accessible via the cloud. However, that adds up to the costs as you must pay the vendor to manage your QB cloud instance independently which still would not deliver all the capabilities of a cloud solution.
As a business, if you’re priority is to automate some business processes, then QuickBooks Enterprises isn’t the best solution for you. QuickBooks Enterprises lacks the ability to automate some crucial business processes such as revenue recognition, subscription billing, asset management and even multi-dimensional reporting. What this means, is that users must license additional 3rd party systems that may or may not be integrated with the main QuickBooks instance. This leads to an increase in manual workload, human error, redundant work processes and excel sheets! Even though the solution might work on the cloud, but as a user, you will still be expected to perform inter-company transactions manually which again increases the possibility of making errors.
Talking about the functionality and customization capabilities, QuickBooks contains a rigid chart of accounts that is developed to minimize business complexities. However, it also means that businesses will not be able to customize the system as they want. This limits the ability where businesses can capture transactions and organize them in a specific financial structure based on liabilities, assets, expenses, and revenues among more.
Netsuite vs Quickbooks
QuickBooks works well for small businesses that only require basic accounting capabilities. It can handle basic accounting processes such as bookkeeping, managing invoices, bill payments etc. along with minimal and basic tracking of the cash flow. For small businesses, the requirement is very minimal and revolves around generating month/year-end reports or calculating annual business taxes among more and QuickBooks can handle these conveniently. However, the issue starts as soon as your company gets on the road to growth.
When compared to the NetSuite software solution, QuickBooks starts to showcase its real limitations. NetSuite offers a complete financial management solution that can increase your work efficiently without having to license or hire additional software, or headcount as your company keeps scaling. Apart from accounting, NetSuite comes with pre-configured KPIs that can show real-time data, reminders, workflows among more. It also comes equipped with customizable dashboards that showcase real-time company updates in real-time to keep everyone updated. Another important aspect is that with NetSuite, financials departments can quickly generate statements that even comply with regulatory requirements such as ASC, 606, GAAP, SOX and more.
To summarize, NetSuite can do much more than just basic and standard accounting. With real-time access to financial data and integrations within every department, users can make informed decisions at every step of the way while keeping everyone on the same page. Take a look below to see how NetSuite compares with QuickBooks.
The 2 platforms are very different when compared to one another. As mentioned earlier, NetSuite is more than an accounting solution. It is a full-fledged business management system that can be customized to handle every business department. Below we would be comparing QuickBooks features with NetSuite to see how it fares with its competition.
Fixed Asset & Lease Management
NetSuite’s General Ledger provides crucial business finances and accounting data from a consolidated level all the way to individual transactions, making it possible for users to customize their General Ledger as per the unique business need. Companies can add custom General Ledger (GL) impact lines to multiple transaction types such as Invoices, vendor bills etc. which can span across multiple or single accounting books. Not only does this save time, but it also reduced the effort that is required for account reconciliation, audit processes and periodic close.NetSuite contains prebuilt mapping capability between your Primary and Secondary chart of accounts, including book-specific currency management. NetSuite’s multi-book management functionality can record every book-specific activity either on a single business transaction from the GL, revenue recognition, depreciation expenses, profit/loss allocations and more.This multi-dimensional reporting eliminates the need to maintain a complex chart of accounts. Due to this, users can add individual tracking details at the core transactional level. QuickBooks has similar functionality with tags, but there is only a certain number of tags that are available and often they get used as Users try to implement new workarounds.
As shocking as it may sound, but QuickBooks doesn’t provide any purchasing control whereas NetSuite’s approval workflow engine decreases purchasing risk by ensuring all the appropriate accounting controls and policies are adhered to. In NetSuite, users can set up automatic discount calculations and exceptions in an event that the invoices do not match the purchase order (PO). Not only this helps in reducing the manual data entry, but it also reduces the time it takes to process vendor bills.NetSuite also contains role-based accessibility functions which ensure only appropriate users have the required clearance for approvals. In comparison, QuickBooks significantly lacks an appropriate approval workflow, leading to disoriented segmentation of duties.For instance, many small-scale companies might have a simple AP approval process that may limit only 1 Main user to generate/approve/pay bills. This may seem quite convenient, but giving a single individual this authority can create an environment that is filled with many possibilities for embezzlement
NetSuite’s Accounts Receivables feature provides a convenient yet robust way to manage complex customer lists, track receivables, and helps to manage incoming customer payments without having to input detailed debit/credit cards information. Data relating to customer ageing, invoice analysis, recurring invoices, deferred revenues, custom reports, KPIs, among more can also be showcased promptly on the customizable dashboard that helps Accountants understand their receivables information better.
With NetSuite, you can also offer customers self-service portal access where they can get real-time information into purchase orders, inventory levels, payments etc. This modernity simplifies the payment processing as invoices can be sent via email along with multiple payment options. In comparison, QuickBooks can create journal entries, but it cannot handle downloads and schedules.
For advanced accounting needs, NetSuite provides an additional module: NetSuite Advanced Revenue Management, that makes it convenient to forecast and capture revenue from contracts. Users can also set up milestone billings and contract renewal notifications. It is also important to note that, NetSuite Advanced Revenue Management can automatically convert forecasted revenue into recognized revenue once the conditions are met.
Depending on your business operations, your sales transaction may consist of a single action or series of actions that are performed over a period. No matter what your requirement, NetSuite enables accounting teams to comply with the latest revenue recognition standards while scheduling revenue for automatic recognition. The system also generates financial forecasts and statements which get updated in real-time.
This feature is helpful especially for software and professional services companies that have to deal with multiple deliverables like upgrade schedules, type of delivered service, additional license requirements for the accounting team to recognize/defer revenue at unique points in time.
QuickBooks can provide such a similar functionality by creating custom workarounds, but it still leads to a myriad of manual journal entries, complicated revenue recognition schedule spreadsheets and more.
NetSuite accounting platform conveniently helps companies to get complete real-time visibility into their financial and billing activities. This helps to create more transparency via consolidation of invoices, setting up automatic rating processes, providing support for multiple price structures, setup fees, project accounting, license costs and consumption-based charges among more.
When it comes to subscription billing, NetSuite truly outperforms QuickBooks. Automated subscription renewals help retain revenue and decrease the time that is required for manually performing these checks. Users can also set up subscription changes, customer-based pricing, promotions, and discounts within NetSuite.
A word on NetSuite SuiteBilling
Subscription-based businesses can benefit from SuiteBilling as it contains the capability to combine one-time product/service purchases with recurring services on a single bill. For instance, the purchase of internet Wi-Fi, setup fee, first bill, service fee, activation fee etc. can all be included in a single bill. SuiteBilling also supports multiple subscription billing options including fixed-rate (monthly, annual, multiyear etc.), consumption-based or even a combination of both.
Fixed Asset & Lease Management
With NetSuite, you can completely manage an asset’s lifecycle. Users can conveniently report on fixed assets, depreciating assets, non-depreciating assets, re-evaluation to disposal. This makes it convenient for the company to keep track of all company assets including the acquisition of new assets and more. Users can also set up accounting and reporting schedules for leased assets, mainly for setting up amortization schedules that split the interest rate from the total renting expense. This helps to create detailed reporting on the balance sheets.
QuickBooks entirely lacks this functionality and does not contain any fixed asset or lease management functionality.
NetSuite provides the necessary advanced inventory management tools to control demand and supply for maintaining optimal inventory levels. This can also include multi-location inventory planning and inventory tracking across multiple warehouses, vendors, contractors and more. Supply chain management, Replenishment management, cycle counting, product traceability are some of the functions of NetSuite’s Inventory Management module which can also include a comprehensive warehouse management system if needed.
Compared to NetSuite, QuickBooks significantly lacks in-depth reporting on many levels. QuickBooks and NetSuite both contain standard accounting reports such as profit & loss, cash flow etc. However, for a growing organization, these may not suffice, therefore NetSuite’s vast library provides real-time reports from revenue forecasting, subsidiary reports, demand planning reports and much more. Users can also create consolidated reports, multi-currency reports, taxation etc. If needed, companies can also create their own reports that may span across a specific department, subsidiary, location, or a product type.
WHY SHOULD YOU CHOOSE
NETSUITE OVER QUICKBOOKS?
In the initial stages of a growing business, it is understandable to choose a solution to “get the job done”. However, as your company keeps adding new headcount, services, technology, you may soon find yourself implementing newer software with advanced features that may or may not be integrated with your QuickBooks account. And that’s why many people regard, NetSuite as the all-in-one platform.
Not just that, QuickBooks comes with many limitations. As it is meant to be just an accounting solution, companies soon start to buy new software to handle company functions like procurement, inventory management, billing, order management, fulfillment and more. This gives rise to the traditional “hairball system” where none of the systems are integrated with each other. Not only does this decrease work efficiency but it also increases the IT maintenance costs for managing the 3rd party systems.
Therefore, we always recommend learning about the scope of a system before you finalize its implementation. Look at our in-depth datasheet to learn about NetSuite vs QuickBooks. Browse key features, industries, customer reviews, testimonials and more.
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