How can NetSuite help with the financial management challenges of an international company?
When a company expands into international markets and establishes local subsidiaries, there are usually challenges that arise at some point. Fortunately, there are solutions to these challenges, and one of them is NetSuite, a global solution.
The challenge of financial fragmentation for an internationalizing company
The accounting, financial management and ERP of an international company is often fragmented between different local practices and software. If an organization’s subsidiaries choose their own local financial management partners, it can be a mess.
Some of the most common challenges faced by internationalizing companies include:
1. Administrative complexity between several different companies
If each local company chooses its own software and systems, this creates a financial and ERP puzzle for the organization. At the top level, management between different local companies becomes cumbersome and time-consuming.
2. At the top level, there is no transparency throughout the organization and a lack of big picture
Different companies may have solutions that work well locally, but at the top level there is no visibility of the whole organization. Data needs to be collected from different software or reports need to be requested from teams in different countries to build a complete picture of the whole business.
3. Lack of real-time information
Even if an overall picture of organizations in different countries can be built up, they are always looking in the rear-view mirror. When you have different systems that do not talk to each other, you are left with reports that are made later and can be outdated.
4. Reporting changes need to be implemented locally with different actors
If reporting changes are desired, they cannot be done centrally. The snowball starts rolling, and each local organization has to implement the changes on the terms of the system in place.
This slows down the flow of information and makes it difficult to manage data - the data you want may not be immediately available.
5. Choosing the cheapest option and discovering its shortcomings too late
Quite often we come across a situation where a company has chosen financial management services based on the cheapest price. As the company grows and internationalization becomes an issue, the chosen partner is no longer able to meet the client's needs.
Of course, it is not impossible to change accounting partner later on, and we will of course help you to do so. However, it is easier if a proper mapping of needs and service coverage is done from the beginning and not just focusing on the (low) price tag.
So how do you avoid these challenges when you start expanding internationally?
NetSuite is the number one choice for companies operating internationally
NetSuite is a very popular global business management system, and it is exactly the software that we at Greenstep recommend for companies operating internationally.
Let's quickly go through what NetSuite is all about.
NetSuite in a nutshell
NetSuite is Oracle's cloud-based business management system - or rather an entire ecosystem, including accounting, HR, payroll, project management, reporting and more.
NetSuite's strength is its versatility and scalability. For a company operating internationally or in the process of internationalization, NetSuite's most significant advantage is its excellent global coverage. NetSuite operates in over 160 countries, so there is no need for a company to purchase separate software for local countries.
And because it is such a comprehensive system, all accounting, financial management and general business management activities can be handled by NetSuite.
On the other hand, not all possible functions are usually introduced, but only those that are essential for the business. NetSuite can always be tailored to your company. At Greenstep, for example, we have developed our own services that support NetSuite.
The specific requirements of local countries, such as the intricacies of regulatory reporting, are taken into account in the NetSuite implementation, but at the same time the company has one unified system and up-to-date visibility of the situation of the different companies.
What is NetSuite OneWorld?
In connection with NetSuite, you may also come across the term NetSuite OneWorld. OneWorld is a NetSuite module and functionality that enables the localization of subsidiaries operating in different countries.
OneWorld provides a centralized business control system, but also adapts to the needs of local countries and regions, such as different currencies or tax requirements.
🌍 And what is SuiteWorld? SuiteWorld is NetSuite's annual event that brings together NetSuite users and partners. SuiteWorld features keynote speeches, workshops and other networking events typical of a business conference. SuiteWorld 2023 took place in October in Las Vegas. However, you do not need to book a long-haul flight to access the event, as the SuiteWorld conference materials are available online (for a limited time).
Where to find the right partner for NetSuite implementation and accounting?
Take us at Greenstep for example! When your company chooses Greenstep as a NetSuite partner, we can recommend the solutions that best suit your business, tailor the system to your needs and offer longer-term support to ensure you get the most out of NetSuite.