PwC's NetSuite Accounting System: A Comprehensive Review

This report provides a comprehensive review of the NetSuite accounting system, focusing on its implementation, benefits, and challenges, particularly in the context of PricewaterhouseCoopers (PwC). It explores the advantages of NetSuite, such as customizable dashboards, role-based security, and industry-specific solutions, while also addressing issues like revenue leakage and forecasting limitations. The report details the importance of involving the right stakeholders, including system users, managers, and customers, to ensure successful implementation. It further analyzes the challenges associated with NetSuite, such as network connectivity problems and integration issues, and provides a case study calculating a company's gross profit ratio to aid in financial decision-making. Overall, the report aims to evaluate the effectiveness of NetSuite as an accounting solution and offers insights into improving its application within an organization.

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Table of Contents
Review of the current situation with regard to the benefits of the new system...............................5
Involvement of the right people.......................................................................................................6
Users of the System.........................................................................................................................7
System Managers.............................................................................................................................7
System customers............................................................................................................................8
System Signoffs...............................................................................................................................8
Definition of challenge....................................................................................................................8
Forecasting and cash flow control.............................................................................................11
Asset management.....................................................................................................................11
Flexibility...................................................................................................................................12
Choosing of a consultant...............................................................................................................12
Evaluation Performance of the Software.......................................................................................12
Ease of Implementation.................................................................................................................13
Review of the program..................................................................................................................13
E- Business....................................................................................................................................13
Globalization..................................................................................................................................14
Reporting capability.......................................................................................................................14
Data Validation..............................................................................................................................14
Software vendor.............................................................................................................................15
System Implementation.................................................................................................................15
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References......................................................................................................................................17
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Introduction
Accounting software is an important software application that is used to record and
process accounting transactions within the organizational units such as receivable accounts,
payroll, general ledgers and trial balance. Accounting software can be developed within the
organization for use or may be purchased from another organization depending on the features
that suit the organization using it. The best accounting software is on-line based that can be
accessed and used conveniently from anywhere on any internet enabled device.
Accounting software consists of various modules including but not limited to; account
receivables where an organization records the monies received, general ledgers where the
organization maintains and keeps its financial books, inventory where the company keeps control
of its stocks, accounts payable where the company records its bills and pays out its arrears to the
parties owed, sales order accounts where the company keeps the orders for supplies to the
customers etc.
Implementation of accounting software largely depends on the cost of its installation and
configuration in the organization. Many midmarket and bigger applications are sold completely
through the help of resellers and developers who pass on license fee to the software vendor and
then charge the customer the installation, customization and other support services. Accounting
to Jones, D. and Jones, M. (2016), software has several benefits to the users such as speeding up
the process of information retrieval, faster bank reconciliation, automation in preparation of
value added tax and also provides real-time position of the company’s financial position. For
example NetSuite accounting system. This system is a multi-facet business solution designed to
make accounting lighter than before. The organization is, therefore able to capitalize on the
production efforts. PricewaterhouseCoopers uses the benefit of its hands-on experience to
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provide a strong level of local understanding and support, in accordance with the international
professional standards of the PricewaterhouseCoopers worldwide organization. However, it has
been challenging using QuickBooks accounting system to update the accounts of PWC in the
recent past hence the need to adopt NetSuite system for the company.
Review of the current situation with regard to the benefits of the new system
NetSuite was developed with a greatly customizable dashboard that is easy to use and
highly navigable. It is loaded with important accounting tools and functionalities and does bring
accounting jargon into the system thereby enabling even the beginners to use efficiently without
trouble. NetSuite has several advantages that helps in then growth of the business With NetSuite,
users can enjoy the following advantages: The suite software possesses a reputable balance of
application breath and product depth, Elastic digital dashboards. The ERP dashboards are a
striking masterpiece. Role-based application navigation and security, NetSuite accounting
system is believed to provide a distinguishable difference from other ERP systems, several
industry specific or vertical market solutions. Create customizable, specialized invoices in a
matter of moments, and enable the customers to pay instantly and the company’s Partner
Relationship Management (PRM) module is well designed, thoroughly integrated throughout the
application and provides good lead distribution, joint forecasting, commission management and
partner performance metrics. Therefore PWC is capable of overcoming the challenges of limited
forecasting as posted by Quickbook system. Also it is capable of offering ring secured solutions
to several specific industries, a thing Quickbook system is not able to handle in its current state.
Procurements and expenses allow one to enter details of the money owed to suppliers,
and money you are eligible to claim back through the company.
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Wide selection of financial reports, ranging from basic reports, such as profit and loss or
balance sheets, through to more advanced reporting such as audit logs and trial balance reports.
Enable access to ones online accounting files wherever you are with great convenience.
With the use of NetSuite system, when a client places an order for stock, the system is
localized to bill the client’s orders within the shortest time possible and allow the customer to
clear the bills instantly without delays. This is to the advantage of the organization, since it
reduces the amount of time spent dealing with one customer hence many customers can be
attended to within minimal time, saving the company on the unnecessary debts arising from
deferred payment by customers.
When making purchases and expenses, one is able to make entry of details of money owed to
those who supply stock to the company in an organized system that calculates discounts received
from the purchases hence the able to claim back the entitled money through the company without
any stress and delays.
Selection of financial report on a wide range is possible from basic reports to advanced
reporting on the financial standing of the company. Reports on profit and loss, balance sheet,
through to audit logs as well as the trial balance can be easily done and seen in real-time since
the system is fed with the raw data and instantly calculates to give refined information for
reporting purposes in the organization thereby aiding easy and faster decision making by the
directors of the company.
Because new system is online based, the users can access it any time anywhere; at the
user’s convenience. It can be accessed through any device that is internet enabled therefore
members of staff can work from office or at home without causing any inconvenience to the
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clients who are seeking to be served at any time of the day. This creates customer confidence,
trust, loyalty as well as business joy of being assured of quality service in real-time. This goes a
long way to augmenting the market for company’s products since the customer will flock for the
products due to efficiency in service delivery.
Involvement of the right people
The information generated by the system is wholesome and is to be used by the entire
organization not limited to a single department of the organization. Therefore bringing the right
people on board is indispensable in realizing positive outcomes of the new system. People
ranging from members of staff to the board of directors need to be involved in their rightful
capacities so as to ensure successful implementation of the new program at hand. When every
rightful individuals are involved, then success is realized right from the basic stages of the use of
the system that is, from data entry, data processing, interpretation through to output as well as
expertised maintenance and management of the new system at large. When the right people are
involved, then very minimal system break-downs are realized.
Users of the System
The accounting software does not operate on its own but it requires people who will use and
manage it on a daily basis. Even though the users need to be familiar with the NetSuite
accounting system, the software does not need to be complex and plug-in accounting jargon into
the system making its use difficult and stressful. NetSuite system is a simple software to use
since it has prompts that guides the user from one step to another; it does not allow the user to
skip even a single step hence making it user friendly and logical in all its stages of operations.
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System Managers
The efficiency of the whole system lies squarely on the role of the system managers. The
managers assigned to supervise the use and the operation of the system need to be savvy with the
financial accounting reporting. The technical how on financial information is important for those
who are responsible for the management of the system? The managers need to acquaint
themselves with the accounting standards of the organization as well as the recognized
international standards. Reporting knowledge is also handy in making the system run smoothly
especially when reporting on the accounting logs and trial balance of the company.
System customers
The data generated by the new system is also used by the customers. The information
produced by the system as summaries and reports are heavily relied upon by the clients who use
them from time to time for sound decision making on whether to use or invest on the products of
the company. Therefore, the summaries and reports need to be reliable, consistent and detailed to
the extent that it can be depended upon by any existing or prospective client who wish to make
decision.
System Signoffs
Before the acquisition of the new system, cost benefit analysis is required to ascertain to
what extent the software will be beneficial to the company. This done by accountants to evaluate
on the cost and assess its affordability by the company. The management is consulted then
scrutinizes the requisition so as to approve the acquisition of the new system for the company.
Stakeholder Consultation method Expected outcome
System users Public engagement Provision of various ideas
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System managers Ongoing consultation Support
Definition of challenge
NetSuite accounting system is frequently used by most companies however, there are
challenges that arises during its use, the following are the some of the challenges; loss of
connection to the data file due to network connectivity problems, slow connection when
multitasked, problems in coping file to another location, non-printing printer and sometime
locating data files becomes hectic. Revenue leakage is the greatest headache since the payroll
cannot be connected to financial management system.
The negative impact on the organization on the use of NetSuite is that it does not keep track of
the skills and employees of the company neither does it reflect to the current project they are
deployed. Forecasting by management is also negatively affecting the organization due to limited
functionality within the NetSuite system.
NetSuite system is an online based software, therefore can be easily integrated to bring
customers on board and allow them to use the system as well from their end in accessing any
information required by them by creating a login feature so that they are able access the portal,
download and print summaries.
Loss of connection to the data file due to network connectivity problems, slow connection when
multitasked, problems in coping file to another location, non-printing printer and sometime
locating data files becomes hectic. Revenue leakage is the greatest headache since the payroll
cannot be connected to financial management. Secondly, following have not been easy to
achieve with the current system in place; forecasting, financial management and integration,
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revenue recognition and integration whereby payroll is connected to the financial management
modules so that cash leakage is avoided.
For instance gross profit and loss. Sales and financial ratios can be used to against the
budget to make sound business decision in the company. The following data relates to a small
trading company. The data can be computed as below to show the performance of the company
for better decision making by the management. Profit ratio (GP ratio) of the company.
Gross sales: $1,000,000
Sales returns: $90,000
Cost of goods sold: $675,000
Solution:
With the help of above information, we can compute the gross profit ratio as follows:
= (235,000** / 910,000*)
= 0.2582 or 25.82%
*Net sales = Gross sales – Sales returns
= $1,000,000 – $10,000
= $910,000
**Gross profit = Net sales – Cost of goods sold
= $910,000 – $675,000
= $235,000
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(Figures adopted from Accounting for Management Organization)
The GP ratio is 25.82%. It means the company may reduce the selling price of its
products by 25.82% without incurring any loss. Significance and interpretation:
Gross profit is very important for any business. It should be sufficient to cover all expenses and
provide for profit. Generally, a higher ratio is considered better.
The ratio can be used to test the business condition by comparing it with past years’ ratio and
with the ratio of other companies in the industry. A consistent improvement in gross profit ratio
over the past years is the indication of continuous improvement. When the ratio is compared with
that of others in the industry, the analyst must see whether they use the same accounting systems
and practices.
Forecasting and cash flow control
Cash is the throbbing heart of any operating business in the world, therefore great care
need to be taken to ensure its control. Sales, customer orders and purchases need to be
keenly tracked at all levels since they provide vital information regarding future cash
inflows and outflows in the business. Information on purchases if tracked, can give a
predictable future cash outflows. Sales and customer orders helps to predict cash inflows
into the business. Consistency in these factors provides an accurate forecasting of cash
flow in the business. Also, monitoring customer’s credit accounts and establishing a
deposit policy for activities in progress can without doubt help in cash flow control.
Manufacturing workflow also helps to track cash flow by outlining flow of activities in the
business. The company’s Partner Relationship Management (PRM) unit is well planned,
thoroughly integrated throughout the application and provides good lead distribution, joint
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forecasting, commission management and partner performance metrics. This specifically
ensures cash flow control by PWC.
Asset management
Management of assets in the business may seem too insignificant but very important so as
to save the company on frequently replacing assets. To manage the assets, an inventory of assets
needs to be taken frequently and the account of receivables also need to be properly maintained.
Work in progress inventory, finished good inventory and merchandising inventory need to be
maintained separately. The total number of assets bought for sale but not yet sold to the
customers, total number of finished products in the warehouse and assets still being worked on.
These information need to be recorded and maintained for reference.
Flexibility
The organization flexibility is measured on its ability to adapt to changes in in the environment
regarding software solutions to the emerging accounting challenges so as to increase service
delivery to the customers as well as efficiency in the management of accounting system in the
company. Flexible digital dashboards that can be adjusted to meet on demand internet delivery
by PWC.
Choosing of a consultant
Consultants are people with specialized expertise who help in seeing hidden things as far
as business success is concerned. They are instrumental in evaluating best accounting software
for any business especially NESUITE. For PWC, NetSuite Software would be helpful in
evaluating and providing the best accounting software. It is a respectable company that works
with both large and small business firms with negotiable pricing of their services. It is efficient
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