March 15, 2021
8 Benefits of NetSuite Multi-Book Accounting
Business financial requirements and reporting functionality are ever-changing as companies grow. Growth opportunities such as opening new subsidiaries, taking on vendors with different currencies, or a desire for additional financial reporting, catalyze a need for expanded financial functionality and visibility. However, many companies still spend countless hours manually compiling reporting and performing ongoing maintenance to fit their needs. With advancements in technology, that all changes with NetSuite multi-book accounting.
NetSuite Multi-Book Accounting is a solution that helps companies maintain a variety of accounting records within a single set of financial transactions. It enables you to show granular details at varying levels, amongst multiple other benefits, in real-time. NetSuite Multi-Book accounting supports a breadth of managerial and compliance needs. If you’re a company that is opening new subsidiaries, works with vendors in varying currencies, has different financial reporting for GAAP vs local or has various other complicated reporting needs, NetSuite Multi-Book Accounting could provide some of the benefits you’re looking for. A summary of what we’ll plan to cover today can be found below:
- Financial Reports to Serve Different Purposes
- Detailed Transaction Reports for Each Accounting Book
- Automatically Post To Multiple Accounting Books
- Adjust Financial Results
- Accounting period Adjustments Associated with Any Accounting Book
- Data Integrity Across Accounting Books
- Consolidate Specific Accounting Books
- Transaction Level GL Insight
Financial Reports to Serve Different Purposes
Companies can report financial statements based on different mandates or regulations. For example, a primary accounting book reporting in GAAP and a secondary accounting book reporting based on local government regulation.
Transaction Reports for Each Accounting Book
NetSuite Multi-Book Accounting can provide insight into each accounting book by building out transaction-level reports on a per-book basis. The use of custom reports and saved searches can allow for accounting teams deeper insight into book-specific transactions.
Automatically Post to Multiple Accounting Books
NetSuite has native functionality to create revenue recognition and expense amortization rules. Rules can be created to post automatically to a specific book or both books to automate accounting processes.
Adjust Financial Results
Book-specific entries can be made to adjust financials in each book. If a specific transaction value needs to be made in each currency, book-specific journal entries can be made to adjust for currency exchange rates in different subsidiary currencies.
Accounting Period Adjustments Associated with Any Accounting Book
Month-end adjustments and results can be produced for one accounting book without impacting the other. If the primary book is ready to be closed but the secondary book needs adjustments, companies can do so with NetSuite Multi-Book Accounting. This helps save time and creates consistency in your reporting.
Data Integrity Across Accounting Books
NetSuite will automatically post book generic entries to both accounting books. There is no need to reproduce transactions in each accounting book leading to clean transaction and financial data without risk of error.
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Consolidate Specific Accounting Books
Natively NetSuite Multibook will only support consolidation for the primary book. However, on the secondary accounting book record consolidation can be enabled for multi-subsidiary or multi-currency companies.
Transaction Level GL Insight
GL Impact can be seen on each transaction for a given accounting book. By navigating to the GL Impact sublist on the transaction NetSuite Multi-Book will show the financial impact to the GL in each book’s currency.
It’s easy to see the benefits of multi-book accounting in NetSuite. If you’re the type of business that operates in multiple currencies, has multiple reporting standards, or needs visibility into each of your subsidiaries, we highly recommend installing this feature via NetSuite OneWorld. If you have questions about enabling this feature, it is recommended to contact your sales or account rep or reach out to Bridgepoint Consulting directly. As you continue to explore the capabilities for your unique situation, you can anticipate finding new features that reduce your team’s headaches in multi-book accounting.
For more information, we recommend viewing the documentation as provided by NetSuite. You can do so here.
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