NetSuite Accounting Review – Is It Actually Good for Accounting?

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Our comprehensive NetSuite accounting review dives deep into this popular enterprise-level cloud accounting software, which has over 37,000 customers worldwide.

With over two decades of experience, NetSuite has simplified accounting with automated invoices, tax management features, and financial close assistance.

However, there’s never a one-size-fits-all solution when it comes to accounting. Plus, given the varying accounting needs of different businesses, it can be difficult to find an accounting platform that blends with your operations and, without breaking the bank.

Is NetSuite a match made in heaven for you, or does its specialization for large-scale enterprises make it unsuitable for more general accounting needs?

We’ve dug deeper into NetSuite’s features, compared it with some of the best accounting platforms, and analyzed several customer reviews to help you decide if this is the solution you’ve been looking for.

NetSuite Accounting Pros and Cons

Before thoroughly analyzing the platform, let’s take a quick look at some NetSuite pros and cons.

What is Oracle NetSuite for Accounting?

It all started in 1998 when Evan Goldberg and Larry Ellison came up with the idea of selling software online.

NetSuite began as a web-hosted accounting company with $125 million in capital from Larry, the founder and CEO of Oracle.

It became the first company to sell business applications on the internet. However, NetSuite was not under Oracle’s brand name at the time. It was only in 2016 that Oracle made a formal offer to purchase NetSuite for $9.3 billion.

Having won over 80 awards in its 25+ years journey, it continues to simplify accounting for businesses.

You can automate various parts of your business, such as invoicing, payments, and journal entries.

Plus, NetSuite is well-known for its extensive reporting functions, which allow you to quickly generate personalized reports.

Is NetSuite’s Software Good for Accounting?

The NetSuite accounting package is one of the best enterprise-level accounting software in the market, particularly for large-scale businesses that need customization.

Unlike other accounting tools, you aren’t limited to a pre-set package of features. Instead, you can pick and choose the features (modules) you need and only pay for those. You can also customize the NetSuite dashboard according to the specific user role.

It allows you to create and automate invoices, manage vendor payments, and generate reports. Plus, NetSuite is one of the few platforms with a dedicated feature to help accountants during financial close and tax management.

That said, NetSuite is not as cheap as some of its competitors. In addition to a monthly subscription, you have to pay a one-time setup fee, which can cost anywhere between $10,000 and $300,000. This is why we found NetSuite incompatible with small businesses.

You can look at alternatives like Xero or Zoho Books if you’re on a tight budget. However, only a few accounting software products can match (or come close to) NetSuite’s accounting capabilities.

NetSuite Key Features

NetSuite offers a host of accounting features to streamline recording and reporting transactions. Let’s look at some of the core ones.

Cash Management

NetSuite simplifies cash and bank account management by automating many reconciliation tasks.

For starters, you can connect your bank accounts and credit cards to your NetSuite account, and all the transactions will flow seamlessly into your accounting dashboard.

Then, NetSuite’s intelligent rules engine matches all your bank data with entries in your books of account and reconciles them automatically. This saves you the time of going through each entry and matching them manually.

If you do not post your bank transaction journal entries, NetSuite will do it for you by using predefined user criteria.

Furthermore, you also get a NetSuite Cash 360 Dashboard for a snapshot of your cash and bank balances. You can also quickly generate accurate future cash forecasts and run various what-if scenarios to plan future expenses and cash flows.

Fixed Asset Management

You can maintain an extensive fixed asset list and include relevant information like purchase date, cost, location, and estimated useful life. NetSuite automatically calculates the depreciation and applies it to your books of accounts.

You can even develop a custom method for depreciation. Suppose you have a seasonal business. In that case, you can depreciate your assets based on the number of units produced. This way, when production is slow, depreciation will also be less, and your profits will be more accurate.

Another advantage is easy fixed asset reporting. You can generate several reports using different filters, such as asset location and value.

Financial Close Management

Closing your books of accounts at the end of a financial year can be a hassle, and key details can be easily missed. With NetSuite, though, you get a standardized close checklist so that you can close your books in the right order.

This way, your accounting team clearly understands what they need to do, and managers can ensure that no account is left open.

Consolidating accounts can be even more challenging if yours is a large company with several subsidiaries (or even a single subsidiary, for that matter). However, NetSuite automatically posts and consolidates subsidiary-level accounts.

You can review the consolidations and make changes if needed. NetSuite gives you a great starting point for your consolidations, which otherwise you would have had to build from scratch.

Accounts Receivables

In our testing, we loved NetSuite’s automated invoicing feature, which converts sales orders into invoices when the orders are met.

Plus, if a customer places multiple orders in a single billing period, the platform is smart enough to convert them into one invoice. And when the payments are received, it automatically allocates them to each order.

If you don’t want to use the pre-set invoice templates, you can create your own and send them via fax, e-mail, or online. You can even add a ‘Pay Now’ button to your e-invoices and receive payments via card, ETF, bank transfer, and check.

Tax Management

NetSuite’s tax module helps you comply with all tax requirements no matter the country in which you operate. The platform’s built-in tax logic calculates taxes on every sale according to the tax jurisdiction.

NetSuite also validates the VAT numbers of all your vendors so that there are no errors when reporting.

The invoices include line-by-line details of the taxes charged, including rate change histories so that auditors can quickly find the rationale behind tax charges.

You can even set your own tax rules, such as exempt items and sales tax holidays. Pulling up and customizing reports is also easy. You can generate real-time reports on sales taxes and VAT positions.

NetSuite Accounting Pricing

NetSuite’s pricing is not publicly available. You’ll have to contact their sales team and list your requirements to get a custom quote suited to your needs.

You’ll also have to pay an annual license fee to use NetSuite. This fee is made up of three components: core platform access, optional modules, and the number of users.

While core platform access is a standard offering, the price varies depending on the additional modules you need and the number of users you want to bring on board.

Once you purchase a plan, you can add additional modules or users whenever the need arises. The average licensing fee is around $999/month.

In addition to this, you’ll also have to shell out a one-time setup fee, which can range from $10,000 to $300,000, depending on your business’s size.

Although it’s difficult to put a finger on NetSuite’s exact cost, it’s certainly among the most expensive cloud accounting software out there. This is why it is well-suited for large enterprises with complex accounting needs.

NetSuite Interface and Ease of Use – Is It Easy to Use?

The main NetSuite board contains two major parts: the Centers and the Portlets. Centers are options in a blue toolbar at the top of the dashboard. From here, you can access options like Customers, Vendors, Payroll, Documents, and Payments.

Next are the Portlets, which are movable panels containing various shortcuts specific to a user role.

For example, an accounts payable manager’s dashboard contains Portlets with quick access to vendor lists, aging reports, and open bills. The left side of the dashboard has a list of reminders or a to-do list.

If you switch to the administrator role, the dashboard changes dramatically. You now see a System Notes Audit Log portlet in the center while the shortcuts are pushed to the left. You’ll also see a new ‘Customization’ option in the Center tab.

In a nutshell, NetSuite is highly customizable and lets you personalize these dashboards further according to your role. This ensures you have all the tools you need to do your job in one place.

NetSuite also offers a handy on-the-go app for both Android and iOS devices. The app allows you to manage expenses and billable time, your NetSuite Calendar, edit and attach files, and make and receive business calls.

However, the app can’t really replace the desktop version.

Like on a desktop, you get various customizable Portlets for a quick view of your key performance indicators.

We found the app to be just an extension of the software, which you can use to view crucial information. NetSuite is primarily desktop software and performs best on a PC or laptop.

NetSuite vs Top Accounting Software

Here’s a look at some NetSuite accounting package alternatives so that you can better understand its competition and what they have to offer – ultimately choosing a platform that best suits your specific needs.

As you can see, NetSuite is certainly a notch ahead when it comes to accurately performing core accounting functions. Plus, it offers large teams an industry-leading level of customization that we’ve not seen from any other accounting platform.

You can manage your cash and bank balances in real time, generate and share invoices, get paid instantly, manage GST and VAT compliances, and generate customizable reports with NetSuite.

However, NetSuite’s pricing means that it is not for everyone. So, if you’re looking for a more affordable solution, we’d recommend alternatives like Xero or Zoho Books.

Xero starts at just $29/month/user, and even its most expensive plan, $62/month, is a lot cheaper than NetSuite. However, Xero won’t give you functions like fixed assets or financial close management.

If you want an in-depth comparison of NetSuite with the others, read our guide to the best accounting software. There, we also list the most important factors you should consider to select the most appropriate tool for your needs.

NetSuite Reviews – What are Customers Saying?

Now that you know how powerful NetSuite can be for your business, let’s dive deep into some Netsuite accounting software reviews from some real users.

The platform has a 4-star rating on G2 from 3,000+ reviews, more than 47% of which are 5-star reviews. Here’s some feedback from a manager handling 1,000+ employees.

As you can see, people love NetSuite’s customizability. You can start with only the essential modules and keep adding functions as and when the need arises.

Similarly, on GetApp (another popular review site), NetSuite has garnered 4.1 stars from 1,400+ reviews. 1,100+ reviewers (78%) have given it 4 stars or more.

People appreciate how easy NetSuite makes it to manage various parts of your business – vendor payments, client invoices, and accounting entries. Its automated bank reconciliation has also drawn praise from regular users.

However, a few users pointed out the steep learning curve associated with the platform. During our testing, we found this to be true to an extent. With so many features, it can take some time for novices to get the hang of the product.

However, once you do, NetSuite’s capabilities make sure you can handle all your accounting needs from one place. Simply put, time spent learning NetSuite’s functionalities has an insane return on investment in the long run.

Why You Can Trust Our NetSuite Accounting Review

Our experts have over a decade of experience reviewing and testing different SaaS products, including the best accounting software.

It is from this experience that we can identify and bring you only the best and value-adding accounting software.

During our NetSuite testing, we signed up for a plan and used every feature the platform offers. This helped us gauge its ease of use and determine if the features work as advertised.

Next, we compared the platform’s core aspects with other accounting solutions to accurately determine its advantages and disadvantages.

Lastly, we went through tons of customer reviews to see what real-world, long-term users think about NetSuite. Are they happy with its customer support, performance, and usability? This information helped us craft a more balanced review.

How to Use NetSuite – Setup Guide

Although NetSuite isn’t the simplest accounting tool we’ve tried, most of its features work in the same way. So, once you get the hang of it, NetSuite reduces your accounting time by more than half.

Now, to make it super easy, we’ll give you step-by-step guidance on how to use NetSuite. Buckle up.

1. Creating a New Customer Record

How to create a new customer record in NetSuite?

Step 1: Click ‘Lists’ > ‘Customers’ > ‘New’ from the ‘Center’ bar at the top.

Step 2: A new customer input form will open. In the ‘Form’ box, select ‘Basic Customer Form’ from the drop-down list.

Step 3: Choose a customer type, such as ‘company’ or ‘individual.’ Enter other details such as name, e-mail, phone number, and fax.

Step 4: Choose a subsidiary to which the customer belongs. Add other information like relationships, communication, and addresses, and choose an account where transactions with the customer will be recorded.

Step 5: Once you’ve completed all the required tabs, click ‘Save’ at the bottom left of the screen.

2. Posting a Journal Entry

Here’s how to post a journal entry in your NetSuite books of accounts.

Step 1: From the ‘Center’ bar, click ‘Transactions’ > ‘Financials’ > ‘Make Journal Entry.’

Step 2: Select ‘Standard Journal Entry’ in the ‘Form’ drop-down menu at the bottom right of the dashboard.

Step 3: Select the subsidiary account and enter the transaction date. You can also add a memo to the entry.

Step 4: Click the ‘Lines’ tab and choose the accounts to which you want to post the entry. For example, the purchase of new pens will be debited to the ‘Stationery’ account.

Step 5: Once done, click ‘Save’ at the top left corner.

3. How to Create a Customer Invoice

Creating a new customer invoice on NetSuite is straightforward. Here’s how.

Step 1: Go to ‘Billing’ on the ‘Center’ bar and click ‘Sales’ > ‘Create Invoice.’

Step 2: Choose ‘Standard Product Invoice’ from the ‘Form’ drop-down menu. You can even create and select a custom invoice template.

Step 3: Enter details, such as the invoice number, customer name, PO number, and other sales information such as lead source, partner name, and effective sales date.

Step 4: Scroll down to the ‘Items’ bar to enter the product details, such as the item name, quantity, price, and discounts, if any.

Step 5: If you need to ship your inventory to the customer, you can enter the details under the ‘Shipping’ tab. Here, you can set details such as shipping date, carrier name, cost of shipping, and shipping address.

Step 6: You can also set the billing terms from a drop-down menu in the ‘Terms’ tab under the ‘Billing’ tab.

Step 7: Visit other tabs like ‘Accounting,’ ‘Relationship,’ and ‘Communication’ to enter more details about that specific customer.

Step 8: Finally, click ‘Save’ on the bottom left of the screen.

NetSuite for Accounting – Is It Right for You?

Furthermore, you can manage invoices, send payment links, add and record VAT and sales taxes on your invoices, and manage financial close accounting more efficiently.

The platform has garnered thousands of positive customer reviews, which is a testament to its real-world effectiveness.

However, businesses on a budget may find NetSuite on the expensive side. You can expect to pay more than $999/month, in addition to a one-time setup fee starting at $10,000. Some users have also complained of a steep learning curve.

However, this shouldn’t be a problem for large businesses looking for a value-driven accounting platform – and that’s exactly what NetSuite caters to. You can get started with only the essential features for your business and add others later when the need arises.

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