NetSuite vs. QuickBooks

Accounting processes become more complex as a business grows. One way that companies can improve accuracy and compliance with regulatory requirements is by relying on accounting software. Though many accounting software are on the market, NetSuite and QuickBooks are among the leading ones.

However, NetSuite and QuickBooks have notable differences that make them suitable for specific business needs. How do the two compare? This article will provide the answer.

An Overview of NetSuite

NetSuite isn’t your usual accounting software. It’s an Enterprise Resource Planning (ERP) cloud software that unifies all business activities. That means it integrates with a host of applications covering most business functions, including accounting, human resources, Customer Relationship Management (CRM), Inventory and Warehouse Management, supply chain, and manufacturing.

One of the most significant benefits of using this software is you don’t need to maintain different third-party software for each department. You can feed information into and pull it from a central database in real-time.

Since NetSuite is a software as a service (SaaS), you only need to pay a subscription to access the platform. The company is responsible for maintaining and upgrading the underlying infrastructure, setting up the server, and installing software on your behalf.

NetSuite targets medium-sized to large organizations from different industries, including manufacturing, retail, health, and professional services.

An Overview of QuickBooks

Unlike NetSuite, QuickBooks primarily focuses on the financial management needs of startups and small businesses. Generally, QuickBooks is available in two versions— online and desktop.

QuickBooks Online is cloud-based. It allows you to access your business financial data remotely as long as you have an internet connection. Usually, QuickBooks Online comes in different subscription plans tailored to meet varying business needs.

Conversely, QuickBooks Desktop is installed locally on a computer. As such, you can only access your financial data on the premises. It comes in different editions, including Pro, Premier, and Enterprise, each of which has a fixed annual subscription fee.

Comparison Between NetSuite and QuickBooks

As mentioned, QuickBooks matches the needs of startups and small businesses, while Netsuite focuses on those with 50 to 200+ employees. The fact that each targets a specific audience explains why their features are so divergent.

Assisted Bookkeeping

QuickBooks has a support feature called QuickBooks Live. It connects users to virtual bookkeepers who can help with the setup process and preparation of financial reports. Afterward, you can have a video call and ask the virtual bookkeeper your questions.

However, the virtual bookkeeper might not help with the day-to-day bookkeeping activities such as recording account receivables and payables, invoicing, and inventory management.

NetSuite, on the other hand, doesn’t have a dedicated assisted bookkeeping feature. Users find support from third-party companies such as Cogneesol. Besides helping with financial reports, such companies offer daily bookkeeping services.

Number of Users

QuickBooks has limitations in terms of number of users. For instance, QuickBooks Online Advanced accommodates three accountants and 25 billable users. This is beneficial because it helps a business give access to multiple users without additional costs. However, it might not suffice in organizations with large accounting teams.

Conversely, NetSuite, being an enterprise solution, doesn’t have a number of users limit. You can add as many users as you want. However, the subscription cost will increase as you add more users.

Scalability

Although QuickBooks offers several versions, its scalability is limited compared to NetSuite. If a business expands rapidly, it might be challenging to customize it for complex operations such as inventory tracking without relying on third-party tools.

NetSuite’s design has scalability in mind. No matter how big your business grows, you can customize the modules to meet the increased number of users, transaction volumes, and data complexity associated with larger enterprises.

User Interface

QuickBooks has a relatively straightforward user interface suitable for startups without much experience in accounting software. With minimal training, its simplified navigation menus and layout allow users to access essential features quickly. Also, the user-friendly interface helps accurately prepare and present financial reports.

NetSuite has advanced features, so its user interface might be challenging to navigate. Even experienced professionals will require training. But, the software has training guidelines to help users learn.

Built-In Integrations

Integration with third-party apps increases the functionality of accounting software. QuickBooks allows up to 750 third-party integrations and has some built-in third-party software. Some examples of QuickBooks integrations include payroll, e-commerce, inventory management, and budgeting.

NetSuite is integrated from end to end, eliminating the need for connecting third-party modules. In some cases, it even teams up with third-party providers to integrate their services into NetSuite.

Mobile App

The need for mobile accounting software has increased as most businesses shift to remote work. To meet the users’ needs, both NetSuite and QuickBooks have mobile apps compatible with iOS and Android. Although these apps are functional and sync with the primary software, they might have limited features.

NetSuite mobile app has a more extensive user interface compared to QuickBooks. Its features include report customization options, call logging, time tracking, and key performance indicators. Also, it supports a push notification for actions that need immediate attention.

QuickBooks mobile app allows users to record transactions, send invoices, enter expenses, and send reports. In addition, you can scan receipts, and the app will record them appropriately. In case of any changes in the records, you’ll receive a notification.

Pricing

Both NetSuite and QuickBooks are paid software. However, they have a free trial period, which you can take advantage of to test the features before committing to a subscription.

QuickBooks Online has a number of subscription tiers, each with different features and a pre-determined number of users. They include:

• Simple Start: It has basic features and supports one licensed user.
• Essentials: This subscription is more advanced than the simple start, supporting three licensed users. In addition to basic features, it allows users to add employee time to invoices and manage bills.
• Pro: It offers all the features of the essential tier plus inventory and project tracking. Also, it supports five licensed users.
• Advanced: This is the most expensive tier for up to 25 users. It has all the pro features plus batch invoicing, workflow automation, employee expense management, advanced business analytics, and more.

Since NetSuite offers ERP solutions, it’s more expensive than QuickBooks. Usually, the price you pay depends on the size of your organization, the number of users, annual revenue, and the modules you choose. Besides the base cost of the software, you also have to pay a fee per user.

Customer Support

NetSuite and QuickBooks tie in offering extensive support to their users. If you run into a problem using either software, you can contact the brands through email, phone, or live chat support. The only slight difference in this case is that QuickBooks call support is available during business hours, while NetSuite offers round-the-clock help. Also, you can interact with other users through community support.

Data Security

Financial data is always sensitive and confidential for most businesses. Therefore, accounting software, whether cloud-based or on-premise, should be able to protect the data from unauthorized persons.

NetSuite offers several data security features. Its security starts with strong data encryption, password setup, and role-based access. For an extra level of security, the software restricts access to devices with a different IP address other than the one specified.

Likewise, QuickBooks adds security to all its processes using features such as encryption and password-protected logins.

Features

Here’s how NetSuite and QuickBooks accounting features differ:

Accounts Payables

Accounts payables are the goods that a business buys from suppliers on credit. Without proper control of accounts payable, there’s always a high chance of misstatement or fraudulent activities.

Netsuite prevents this by having an approval workflow engine. It ensures the segregation of the different activities related to accounts payable, such as making an order, receiving it, and paying it, even if responsible parties are not together. This ensures each party gets access to data related to their role. If an error occurs, it will be possible to pinpoint where it comes from.

In contrast, QuickBooks has limited approval of workflow. Users can only create a few segregated duties, which weakens the controls.

Account Receivables

The account receivable feature in QuickBooks and NetSuite works similarly. It helps you manage your debtors’ list, track the amount receivable, and record payments accurately. Also, you can generate reports related to your debtors, such as invoice analysis, aging reports, and deferred revenue.

However, most of the account receivable features in NetSuite are highly automated and don’t require much manual entry like in QuickBooks. Additionally, the NetSuite account receivable module features over 300 features, meaning it has more functionalities. QuickBooks, on the other hand, excels in having a straightforward interface.

Fixed Asset and Lease Management

You can account for fixed assets and leases in QuickBooks through journal entries. However, the software doesn’t have dedicated fixed asset or lease management features built into its functionality. This makes it less functional compared to NetSuite, which has dedicated fixed asset and lease management features.

Inventory Management

QuickBooks allows users to do basic inventory management tasks like creating product lists, tracking quantities, and managing reordering. Users must integrate the software with third-party inventory management tools for advanced inventory services.

In contrast, NetSuite is more advanced because it has a highly automated built-in inventory management module. It allows users to get instant visibility of the inventory levels, turnover, and orders for better decision-making. Manufacturing companies that store their raw material in warehouses can also use NetSuite because it has a warehouse management feature.

Reporting

Whether using QuickBooks or NetSuite, you can generate financial statements, including cash flow, profit and loss, and financial position statements. QuickBooks relies on its advanced reporting capabilities, while NetSuite uses advanced analytics and reporting features.

Factors That Determine Whether to Use QuickBooks or NetSuite

Both QuickBooks and NetSuite are reliable accounting software. However, each has its strengths and weaknesses—also, there are specific situations when each is suitable. Here are some factors to help you decide whether to choose QuickBooks or NetSuite.

The Size of the Business

Typically, small businesses don’t have complex accounting needs. So, QuickBooks may be enough in this case. Large organizations with branches and subsidiaries in different countries should go for NetSuite. Besides managing accounting needs, it can help your business automate other processes.

The Cost

As mentioned above, NetSuite subscription services are more expensive. For a business that’s still in the early growth stages, adding more expenses can affect profitability negatively, so before choosing NetSuite, it’s crucial to evaluate whether your business can commit to long-term expenses without running into financial problems. If the cost is too high, go for QuickBooks.

Existing Business Needs

Businesses need to evolve with growth. If it gets to a point where QuickBooks features are falling short, you can switch to NetSuite. Its high level of customization makes it less challenging for a business to scale without replacing the existing infrastructure.

FAQs

Can I use both QuickBooks and NetSuite in my business operations?

Using both QuickBooks and NetSuite in your business is not feasible as both operate as stand-alone software and don’t integrate. Besides, this would cause inefficiencies as you’d have to maintain your data in separate locations.

Is NetSuite better than QuickBooks?

NetSuite has more refined features than QuickBooks, which might make it look better. However, these software meet different needs. So, each is best for what it was designed to do.

How long does it take to realize a return on investment after switching from QuickBooks to NetSuite?

It might take a few months for your business to realize a return on investment (ROI) after switching to NetSuite. However, factors such as modules chosen, customization, and training influence the timeline.

Choose Accounting Software That Works for Your Business

Just because NetSuite and QuickBooks are both accounting software doesn’t mean they work the same way. Each has unique features that meet varying business needs, so before choosing either, it’s crucial to do a thorough assessment to go with the one that will help your business keep efficient records.

Which accounting software do you think is suitable for your business currently? What factors have you considered to come to this conclusion? Let us know in the comment section below.