4 ways a deep ERP integration helps your month-end close.
Many growing companies reach a tipping point when it makes sense to move to an ERP solution like Oracle NetSuite or Sage Intacct. The decision to move to an ERP typically involves assessing business processes, accounting and reporting needs, company structure, and whether or not current systems will scale as those elements become more complex. The ERP migration process can be costly and time-consuming, but, overall, most businesses experience an overwhelmingly positive ROI when they implement an ERP.
To get maximum value from an ERP, it’s important to consider the depth of the integration. The software programs that integrate with ERPs each take a different approach, with some integrations offering much more than others, so the experience will vary. Let’s take a detailed look at what a well-designed integration between a spend management platform and NetSuite offers, and how it helps with a faster month-end close.
1. Automated complex amortization schedules.
NetSuite offers a library of templated amortization schedules and structures, so finance teams simply select a NetSuite template, and the schedule and bookings for complex amortizations are done automatically.
2. Multi-subsidiary and multi-currency support.
You can handle transactions around the globe when subsidiary rules are applied to all spending, and a transaction from a subsidiary’s bank account books automatically to its general ledger. When spend from all subsidiaries, no matter where they are, flows directly into NetSuite, real-time, cross-subsidiary visibility is then possible without complex reconciliations at the end of the month.
3. Automated GL sync.
Time-consuming data imports aren’t necessary when all transactions are auto-populated to the appropriate NetSuite accounts for review, and then synced to NetSuite — especially if this can happen for every type of spend, including bill payments, corporate cards, virtual cards, purchase orders, or personal employee expense reimbursements, and even account for cash back earned through card spend. When transactions sync seamlessly, finance teams can perform soft closes on demand at any time, and they can even move towards a continuous, or rolling close. This process also negates the risk of errors and the need to continually confirm data accuracy before closing the books.
4. The ability to capture unique custom fields.
A NetSuite GL can be set up with customized fields to reflect unique business needs. The ability to apply those custom fields to transaction tags in a spend management system enables consistent reporting across all payment types. Because NetSuite’s custom fields are populated into a spend management system for bills, card purchases, and employee reimbursements, the finance team doesn’t have to make manual adjustments, or ask employees for more information, for any type of spend.
The Benchmark Survey of Finance Professionals found that almost 20% of respondents spent at least two weeks on their month-end close. Moving to a continuous close was identified as a top priority, particularly among high-headcount companies. An integration between a comprehensive spend management system, and an ERP like NetSuite, ensures that journal entries don’t become backlogged, and finance teams don’t have to process, verify, and aggregate an entire month of financial data at the end of the month.
But the effectiveness of an ERP varies widely between platforms. An integration that considers the details, like amortization schedules and custom fields, can make the difference and increase the ROI of an ERP migration. Many AP systems don’t take those details into account. Find out how Airbase’s deep integration with NetSuite can cut your time-to-close, reduce the risk of errors, and improve finance operations for an entire company. Schedule a demo with us today.
Airbase offers a one platform solution to manage all non-payroll spend. It provides oversight and control over spending with real-time reporting and automatic syncing directly to your general ledger. Control all payments – physical cards, virtual cards, ACH, and checks – from one place. Close faster. Empower employees. Control spend.
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