What is Netsuite?
Netsuite is an ERP (Enterprise Resource Planning) tool. It manages your accounting, reporting, supply chain, procurement, and much more. It’s many times more powerful than QBO (Quickbooks Online).
Who uses Netsuite? Should my startup switch to Netsuite?
Netsuite is used by many Fortune 500 companies as well as private SMBs. Later stage startups like Atlassian, Twilio, and Zendesk are users. You should consider moving your startup to NetSuite if you meet any one of the following criteria:
- You expect to have 100+ employees within the next 6 months
- You expect to have $10M+ in Annual Recurring Revenue within the next 6 months
- You have 6+ domestic subsidiaries
- You have 2+ international parent/subsidiary companies
- You operate in high volume, high complexity industries such as FinTech, B2C SaaS, or eCommerce AND you meet 50% of one or more of the criteria above. (For example, you should consider moving your startup to Netsuite if you operate in the Fintech industry and will have 50+ employees within the next 6 months)
How much does Netsuite cost for on-boarding and monthly recurring cost?
On-boarding costs can be between $25,000 - $100,000. Monthly recurring costs will vary depending on whether you go directly or with a BPO partner like Kruze. If you go directly through a Netsuite sales rep, you’ll be quoted ~$50,000 per year. If you go through the Kruze BPO preferred pricing, we will charge ~$10,000+/year.
When should my startup switch from QBO to Netsuite? If your startup matches the criteria above, aim for making the switch at a quarter-end completion date (3/31, 6/30, 9/30, 12/31) and give yourself plenty of cushions.
How long does a Netsuite implementation take? An aggressive timeline is at least 3 months, but a more moderate timeline is 6 months. Under an expedited program that Netsuite offers called “Suite Success,” many industry-specific setups come pre-configured. Even with this expedited configuration, a three months implementation is standard. “’Zero to Cloud’ in 100 days” is the company’s promise.
Where is Netsuite hosted? In the cloud, on your browser.
What Netsuite competitors should startups consider?
Other ERP solutions that we’ve seen successfully used by startups include Intacct, and smaller startups can often get by with QuickBooks Online and Salesforce. Netsuite competitors for startups include:
- Intacct
- QuickBooks Online
- Xero
- Wave
- Salesforce
We typically recommend QuickBooks as the accounting software that most startupsshould start with, and then recommend startups switch to Netsuite when they match the criteria we’ve outlined above. If you are our client, we’ll recommend an ERP solution when the time comes - but until then, we suggest staying with the more affordable, and simpler to maintain, QuickBooks.
Kruze Consulting is a CPA firm focused on the startup market - we only work with funded startups. Our team handles all things Accounting, Tax, Finance, & HR: interim CFO Consulting, financial modeling, annual taxes, R&D tax credit studies, venture debt consulting, 409A reporting, bookkeeping, AR/AP, Gusto, and Seed/Series A/B Fundraising Preparation for funded companies.
Vanessa Kruze, a seasoned CPA, has an impressive track record prior to establishing Kruze Consulting. Her experience includes pivotal roles at Deloitte Tax and as a controller for a substantial startup with over 120 employees and $20 million in revenue. Under her leadership, Kruze Consulting has emerged as a distinguished CPA firm, recognized on the Inc 5000 list for five consecutive years, illustrating rapid growth and success in the competitive accounting landscape. Vanessa's unique approach, combining deep industry knowledge with advanced automation and software solutions, has positioned her firm as a leader in providing comprehensive accounting services to startups across the United States.
