Software companies operate in an industry that is constantly evolving. The aim is rapid growth, which brings new challenges and putting in place a business system that will facilitate growth can be a challenge.
As a software company themselves, NetSuite has had to face and overcome the same challenges as other companies in the software industry and NetSuite ERP evolved into a solution that was ideally tailored for the software industry. As a result, NetSuite ERP is of particular interest to other software companies who understand that one of the key components to achieving rapid growth, is through having a system in place that will not only meet the challenges you face today but also in years to come.
NetSuite ERP is the world’s #1 cloud-based business system for software companies – a unified, scalable solution aimed at fast-growing businesses that allow you to run your entire business in real-time from anywhere with an internet connection. NetSuite integrates Customer Relationship Management (CRM), customer service, financials, subscription management, contract management, billing and more, all in a single package.
There is a broad array of features and functionality in NetSuite that is tailored towards the specific needs of software companies, so we’ve picked out our top 5 NetSuite features that are most suited to software companies:
1. Scalability of the Platform
One of the most attractive features of NetSuite that will appeal to any ambitious software company is its scalability. When starting out you can just opt for the functionality you need – which may also be more cost-effective to implement. Because NetSuite is a modular system, it is very flexible; so you can simply add more product features when you need them, and if you take on more staff you can add more users to your subscription too – all without any degradation in performance.
2. Pricing Management
Too many software companies have chaotic and complex pricing structures that are difficult to understand and difficult to implement. As a result, money is left on the table, affecting the long-term profitability of the company. NetSuite makes it easy to manage a wide range of pricing structures which can help software companies to provide innovative solutions to a broad range of customers, which ultimately strengthens the bottom line.
3. Revenue Recognition
A big headache for many software companies is managing revenue recognition. It’s rare to find financial software that offers the tools to manage this effectively without having to resort to using additional third-party software or spreadsheets.
NetSuite manages accounting, complex billing and revenue recognition all in one system, and it is IFRS 15 and ASC605 and ASC606 compatible.
NetSuite automates revenue forecasting, allocation, recognition, reclassification, and auditing through a rule-based event handling framework. Whether your business conducts sales transactions that consist of products or services or both, and, whether these transactions occur at a single point in time or across different milestones, NetSuite’s revenue recognition solution will help you schedule, calculate and present revenue on your financial statements accurately.
4. NetSuite SuiteBilling
SuiteBilling is NetSuite’s subscription billing and contract management module for companies that have recurring billing requirements. It automates recurring billing, contract renewals, up-sells, down-sells and various other billing models including volume and rate based billing scenarios.
NetSuite SuiteBilling also provides the ability to create customer-specific pricing and discounting for more accurate business management and planning, as well as allowing you to schedule and automate changes to subscriptions – all features that software companies might wish to leverage with their customers.
5. Global Financial Management
It is increasingly common for software companies to sell their software internationally from a very early stage, and this often involves opening offices in other countries to be able to service international customers, whether they be in the USA, Europe or Asia.
NetSuite has earned a reputation as the leading ERP systems for global companies that need to manage multi-country, multi-currency and multi-tax requirements, due to its single database with real-time consolidation and advanced inter-company capabilities – available with NetSuite’s OneWorld module.
If you would like to know more about NetSuite, please get in touch and speak to one of our experts:
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