6 Considerations for smooth implementation and use of NetSuite ERP (2023)

Committing to new accounting software or an enterprise resource planning (ERP) system is no small undertaking. If you are taking on a new role or want to move to a higher levelthe maturity of your finance function, implementing and using new financial or accounting software can be a watershed moment for financial managers.

You want to make a little noise without causing a tidal wave and see a return on your investment that will benefit the business and allow you to succeed in the long term. When making the decision to move forward with a vendor, you should carefully consider the implementation plan and sequence of events, define what your goals are, and detail the specific use cases you are seeking from the new system.

39% of CFOs said they are in the process of implementing more digital solutions in their finance function. - EY Digital Disruption in Finance Research

When a software vendor claims to be a panacea and offers a magic pill to solve all your problems with its array of ERP modules, it's too good to be true and backed by financial leaders who take on multiple implementations at once.

Benefits of NetSuite General Ledger

To understand the benefits and costs of NetSuite and implementation, you need to ask yourself: "Why am I even making this decision?”

In this post, we'll cover the pros and cons of implementation, but if your only pain point is that your currentaccounting software does not have a report creation solutionYour business demands, a new ERP is not the solution.

Instead of committing almost a year of your time and hundreds of thousands of dollars to a new ERP - that won't solve your reporting problems, your best bet is to stay in your current ledger (ie QuickBooks Online) and enjoy an FP&A tool that's capable of automation reporting, planning and forecasting at a fraction of the cost.

If you plan to implement an ERP-like NetSuite, understand its strengths and weaknesses and where the gaps can be filled with third-party options.

6 Considerations for smooth implementation and use of NetSuite ERP (1)

(Video) NetSuite Implementation Methodology

Dealing with complex accounting

Of all the modules in the NetSuite ERP system, the most valuable component for finance and accounting is the general ledger. Influential finance functions use these tools to control transactions and enable the books to be closed in a timely and accurate manner. However, not all ledgers are created equal.
If you have a unique chart of accounts structure, high transaction volumes, and hundreds or more accounts, NetSuite is an excellent and infinitely scalable solution to handle your complex accounting needs.

It also helps with audit control and preparation so you can be sure your metrics are compliant, reliable and readily available in the event of an audit or review.

27% of CFOs say that improving existing ERP capabilities is their top technology priority. - EY Digital Disruption in Finance Research

Consolidation of entities and companies

NetSuite is a great tool if you need to consolidate multiple companies or cross-company transactions. An accounting system like QuickBooks Online is great for single-entity businesses, but if you have multiple entities that you want to consolidate for reporting and planning, it becomes increasingly difficult to manage without additional resources.

However, NetSuite's additional features come at a price. The basic package you can find will be exponentially more expensive, potentially twice as much per year for the consolidation features.

If your primary need is business consolidation for reporting purposes, you can continue to use a system like QuickBooks Online and enjoy a cost-effective and robust solution.and white-glove financial solutions to surpass the way you report and analyze business.

Manage multiple currencies

A unique use case for NetSuite is if you handle multiple currencies and foreign exchanges. Exchange rate fluctuations can be almost impossible to predict even for companies operating in several countries

If you sell to customers who pay in multiple currencies using QuickBooks Online, you will need to manually convert those currencies to US dollars, which can be automated in NetSuite.

Challenges of implementing NetSuite and ERP

1. Consider the structure of your chart of accounts

How you classify and structure your accounts will have a lasting impact on your ability to report, plan and forecast. Your chart of accounts used for accounting must also be used for FP&A purposes. This consistency is essential for the financial industry to provide the necessary actionable insights that drive strategic business decisions.

(Video) ERP Implementation Plan: 6 Key Phases for Success

Complex accounting can be difficult to maintain even with advanced systems. Make sure your chart of accounts is structured to reflect how your company classifies and allocates transactions.

This structure is needed not only for accounting purposes, but also for reporting, forecasting and planning at the departmental and business unit level.

2. Budgets and implementation plans are rarely respected

How long will it take to implement NetSuite?

After he dedicated himself to aa major revision of the ERP or accounting system, most will go through a painful process that often exceeds the budget and time to implement one or all of the planned modules. Set expectations, becausemost NetSuite implementations will take six months or more to go live.

The process requires strong internal involvement from you and your team, so be prepared to spend a significant amount of time working with implementers who may disrupt internal workflow capability.

That's the nature of many systems, where you try to plan for every scenario, but inevitably something unforeseen complicates things, sometimes completely out of your control. Make sure you plan accordingly so that all stakeholders are aligned, launch expectations are defined, and roles and responsibilities are clearly defined.

It is imperative to work with an experienced implementer who understands the technical and financial needs of your role. Regardless, the activation deadline you set is likely to be delayed or only possible with a partially completed planned migration.

3. The migration process is not comprehensive

To plan for the future, you must first analyze the past. Collecting historical operational and financial data and developing a clear analytical framework for monitoring and measuring performance are essential to making informed decisions.

You'd think that integrating your historical metrics from your old ledger would be gambling - unfortunately, it's not that simple.

(Video) What is an ERP/NetSuite Implementation Partner? | GURUS Solutions #NetSuite #ERP

Factors such as the structure of your accounts, the skill of your implementer, and the availability of data from your legacy systems add to the complexity of migrating yourhistorical data for your new ERP.

However, mapping and grouping your data is essential for accounting and FP&A purposes, so if you can't do this without disrupting your teams' workflows, it's worth deciding what data you need and evaluating alternative planning and forecasting solutions.

72% of CFOs say that choosing the right implementation partner is the biggest challenge to successfully implementing digital solutions. - EY Digital Disruption in Finance Survey

4. Don't forget to add SuiteAnalytics Connect

Using NetSuite SuiteAnalytics Connect allows data storage and access to your data, which is required for any third-party application. ERP systems offer numerous advantages, but they are not a panacea and it will be necessary to link data with other systems.

Even if you do not initially expect to connect other systems or include new tools during implementation, flexibility from day one will not marry you to any solution.

Reps don't always offer it directly, but it's available and it's best to include it in the initial implementation negotiations. You can expect to pay several hundred dollars per month for the Analytics Suite, although there are packages where it can be included in the expected subscription.

5. The reporting modules leave a little to be desired

NetSuite is capable of generating a P&L and your basic financial statements, although it still needs to be builtmanually not excel.

Custom reports are limited and NetSuite strongly advocates using Microsoft Office for their reports, revealing that they prefer you spend your time in Excel creating custom reports. This tedious, error-prone process brings the whole circle back to the beginning.

When demoing the tool, an IT team or non-finance executive may feel like the financial reporting features will get them out of Excel hell. Netsuite is not intended for advanced or consolidated reporting and leaves a lot to be desired. Creating monthly management reports or dashboard packages becomes a manual process requiring hours of Excel work.

(Video) NetSuite Implementation: Before, During & After | GURUS Solutions Webinar

6. Not all ERP modules are best in class

By design, ERP systems consolidate your business systems in one place. This was a necessary solution for finance and IT before the advent of integrations and open APIs. It is now much easier to connect multiple systems and import data from third-party sources. Having all your business systems in one place might seem like a convenient solution, but the reality is that modules outside of the general ledger don't have the necessary functionality.

Ask your CRO or Head of Sales if they want to move away from Salesforce or Zoho in favor of a NetSuite CRM module - so protect yourself and prepare for their reaction.

Be careful in evaluating your tool and consider alternatives before committing to such a large item as a new ERP. While it may seem beneficial to consolidate systems, the reality is that the capabilities of these systems lack the capabilities of their market equivalents, and the sum of the parts is actually greater than the whole - and at a more cost-effective rate.

Your operations, sales, and marketing business units will regret switching from their beloved Salesforce to NetSuite CRM, and finance won't be able to produce the detailed reporting and forecasting needs of the business without an additional dedicated FP&A system.

consider your options

Committing to a new ERP is a significant strategic decision that requires proper planning and alignment across the organization. Total cost of ownership and implementation timelines often exceed initial expectations, but being strategic about the modules you include, creating a cohesive plan to align your team, and leveraging the best systems will allow you the greatest success.

If you want to maximize the reporting, budgeting and forecasting capabilities of your accounting software, our tools and our team of proven financial executives can help. We also offer a variety of finance solutions to improve the performance of your finance function. Contact us today to learn more about our FP&A solutions.

(Video) Can Oracle NetSuite ERP Scale for Larger Organizations?


What is the key to a successful NetSuite implementation? ›

Planning and preparation, system design, configuration, data migration, testing, and training, are the typical components of any successful implementation strategy. A competent project manager and implementation partner are essential for rolling out NetSuite efficiently.

What are the main 3 factors would you set to choose an ERP system? ›

Requirements, resources, industry, and company size are all factors you should include in your ERP selection criteria to find the right software.

What are the 8 phases of ERP? ›

ERP life cycle

The process of its implementation to automate business processes is referred to as ERP implementation life cycle. It involves several steps and stages right from the start, planning for project implementation, analysis, design, implementation, transition, and operations.

What is the most important step of an ERP implementation? ›

Testing is a crucial part of the ERP implementation process because it will give you a clear insight into the performance of the system and help you make a smooth transition. You should never go live before performing proper system and user acceptance testing.

What is the most critical step in ERP implementation? ›

The Planning Phase

It is critical to the project's overall success. During this phase, the organization assesses its current systems and processes, identifying the requirements that the ERP software will need to support with either built-in ERP modules or custom software development.

What 3 5 steps should a company take to successfully implement an ERP system? ›

5 key steps for a successful ERP implementation
  1. Project Planning. Set objectives that clearly define the scope of implementation. ...
  2. Analyzing Software Capabilities. Dedicate a full week to analyze the software for the project team. ...
  3. Data Management. ...
  4. Training & Testing. ...
  5. Go-Live & Post-Implementation.

What are the 4 pillars of NetSuite? ›

Pillars of NetSuite SuiteSuccess
  • Build. Under this pillar, it consists of activities to provide a complete and accurate suite of support for the modern industries. ...
  • Engage. ...
  • Consume. ...
  • Optimize. ...
  • How We Deliver.
Nov 4, 2020

What is NetSuite ERP implementation? ›

A NetSuite implementation is the process of setting up and configuring the NetSuite software to meet the specific needs and requirements of a business. This includes tasks such as customizing modules, integrating with other systems, and training users on how to use the software effectively.

How do you ensure successful ERP implementation? ›

9 Tips for a Successful ERP Implementation in Any Industry
  1. Create a Project Team. ...
  2. Assess Your Processes. ...
  3. Know and Document Your End Goals. ...
  4. Match with the Right Technology. ...
  5. Outline Data and Workflows. ...
  6. Be Picky about Your ERP Implementation Partner. ...
  7. Drive User Adoption. ...
  8. Involve a Partner Sooner Rather than Later.
May 9, 2022

What are the 5 pillars of ERP? ›

SYSPRO Cloud ERP is built on 5 Pillars
  • Specialized Solutions.
  • Adapt & Extend.
  • Engage.
  • Transform.
  • Service.
Mar 16, 2022

What is the rule of 5 for ERP? ›

So, it's pretty simple: ERP project costs = 5% of total revenue. ERP project costs = 5x your software license costs. Internal resources = 5 FTEs.

What are the most important criteria for ERP selection? ›

The viability of an ERP software vendor is crucial to consider as far as ERP selection criteria, including: Product viability: how long has the product been on the market, what is the future software roadmap, what is the research and development investment in the product.

What are the two strategies in implementing an ERP system? ›

Big Bang or Phased Approach – ERP Implementation strategies include Big Bang, Phased, Hybrid, and Parallel Adoption. Each organization requirements are different and as such, the project management method is itself evolving using PPM, SCRUM, and DevOps.

What are the six major activities of system implementation? ›

The stages described in the guide include: 1) exploration, 2) installation, 3) initial implementation, 4) full implementation, and 5) expansion and scale-up. Each stage has specific steps and associated activities.

What are the 4 stages of implementation? ›

There are four functional Implementation Stages: Exploration, Installation, Initial Implementation, Full Implementation.

What is the ERP implementation methodology? ›

The ERP implementation process includes installing your software, transferring all your data, both financial and transactional data, mapping your processes and training your users to actually use the software. This process will determine whether your ERP implementation is a success or a failure.

What are the phases stages of implementing an ERP? ›

There are 6 phases that make up any ERP implementation project: Discovery and Planning, Design, Development, Testing, Deployment, and Ongoing Support.

Which is the most important failure factor of ERP system implementation? ›

ERP implementation failure generally results from inadequate planning and resource management, coupled with a lack of awareness regarding risks. This failure can happen at multiple levels, including critical business processes that can overwhelm a technical team's ability to manage risks and manage change effectively.

What is the most critical success factor of ERP implementation in an organization? ›

The key success factors are: Project Strategy and Start Up. Management Commitment. Project Scope.

What is the key differentiator of NetSuite? ›

The most important differentiator that elevates Oracle NetSuite above Business Central is the fact that NetSuite is an ERP system that is built solely for cloud, making it the only true-cloud player in this market.

What is NetSuite ERP solution? ›

What is NetSuite ERP? NetSuite ERP is an all-in-one cloud business management solution that helps organizations operate more effectively by automating core processes and providing real-time visibility into operational and financial performance.

What features are included in NetSuite ERP? ›

  • ERP.
  • Accounting Software.
  • Global Business Management.
  • CRM.
  • Professional Services Automation.
  • Omnichannel Commerce.
  • Analytics & Reporting.
  • SuiteSuccess.

What are the benefits of NetSuite ERP? ›

With NetSuite ERP, companies can manage their entire business on a single platform. NetSuite has solutions for accounting, inventory management, order management, production, supply chain, commerce and HR to help your entire organization leverage best practices.

What is workflow in NetSuite? ›

NetSuite workflows are a graphical tool that allows you to customize NetSuite to fit your business and industry, without knowing complex JavaScript or SuiteScript code. Workflows can apply to both standard and record types with multiple actions.

What are the main issues to manage for a successful ERP implementation? ›

What are the Challenges Involved in the Implementation of ERP in an Organization?
  • Determining the Processes that Should be Integrated. ...
  • Resistance by the Organization's Teams to Change. ...
  • Lack of Flexibility. ...
  • Costs Involved in Maintenance. ...
  • Issues Related to Data Migration. ...
  • Poor Project Management.
Nov 23, 2022

What are the four major components of enterprise system? ›

The Four Types of Enterprise Systems
  • Enterprise Resource Planning (E.R.P.) Systems. ...
  • Supply Chain Management (S.C.M.) Systems. ...
  • Customer Relationship Management (C.R.M.) Systems. ...
  • Knowledge Management Systems (K.M.S.)
May 25, 2021

What is rule of 5 criteria? ›

As Lipinski's “rule of five”, five key physiochemical parameters (molecular weight, lipophilicity, polar surface area, hydrogen bonding, and charge) require optimization to improve BBB permeability by passive diffusion (Lipinski et al., 2001).

How do ERP systems enhance efficiency in a business organization 5? ›

ERP helps to automate various business tasks and processes while increasing efficiency in numerous departments. It also helps to reduce repetitive tasks, allowing more time for other operations. An ERP system helps to streamline business processes by automating manual tasks and improving inventory management.

What is ERP in principles of management? ›

Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.

What is the most important step of ERP implementation? ›

The development phase is the third and most crucial part of implementing ERP.

What are the four stages of ERP? ›

An ERP system life cycle consists of several phases through which the system goes during its whole life within an enterprise. 2. According to Markus and Tanis, an ERP life cycle has four phases: chartering, project, shakedown and onward & upward.

What are the three popular implementation strategies for ERP? ›

Key approaches to ERP implementation. There are three key approaches that you can use to implement an ERP system: big bang, phased, and parallel. Each approach has its inherent advantages and disadvantages.


1. What is Oracle NetSuite? Introduction to NetSuite ERP for Small and Mid-Size Business
(Eric Kimberling - Digital Transformation)
(GSI, Inc.)
3. 10 Steps for NetSuite Implementation Success
(GSI, Inc.)
4. An Overview of NetSuite ERP for Software and Technology Companies
(Eide Bailly Technology)
5. Microsoft ERP vs NetSuite ERP: Which Should You Implement in 2022?
(GSI, Inc.)
6. Best Practices for NetSuite Implementation and Customization
(Grazitti Interactive)


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