Private equity-backed tech company optimizes NetSuite to elevate efficiency
Overview
When companies grow and evolve, their business processes often become more intricate, and operational challenges can emerge if technology solutions do not align with new demands. Implementing strategic optimization initiatives enables technology to adapt to address potential issues, support new requirements with efficiency and accuracy, and scale for continued growth.
Background
A private equity-backed technology company in Boston faced operational inefficiencies within their NetSuite system. As the company scaled, their complex entity structure and fragmented procure-to-pay process led to financial reporting challenges, duplicate efforts and delayed payments. Recognizing the need for optimization, leadership engaged RSM US LLP to conduct a comprehensive NetSuite assessment.
Project
RSM executed a four-week NetSuite assessment to identify inefficiencies and opportunities for improvement. The findings provided a roadmap for the company to enhance system performance while aligning NetSuite with their growth objectives. The project was structured into the following phases:
Phase 1 - Discovery and diagnosis
RSM advisors collaborated with key stakeholders across finance, procurement and operations to evaluate existing NetSuite configurations, data structures and workflows. This phase surfaced critical inefficiencies in entity management and accounts payable processing.
Phase 2 - Strategies and solutions
The assessment revealed opportunities to streamline operations, eliminate redundancies and enhance reporting accuracy through the following measures:
- Entity structure consolidation: The company’s fragmented entity structure caused reporting inconsistencies and unnecessary complexity. RSM recommended and designed a streamlined entity structure to simplify intercompany transactions and financial consolidation.
- Procurement tool integration: The company’s accounts payable process was largely manual, resulting in delays and compliance risks. RSM recommended optimizing the procure-to-pay workflow by leveraging a procurement tool integrated with NetSuite, to improve vendor management, approvals and payment cycles.
- Chart of accounts compliance with U.S. GAAP: RSM recommended implementing NetSuite localization bundles and multibook capabilities to align statutory and adjustment reporting with U.S. generally accepted accounting principles (GAAP).
- Standardized procedures for purchase accounting: RSM proposed standardized procedures for purchase accounting to create a structured process for future acquisitions.
- Commingled investment and AR/AP for return path: RSM recommended netting procedures to consolidate and streamline financial transactions.
- Australia functional currency setup: To resolve issues with the Australia entity’s accounting, RSM suggested establishing a functional currency framework and reviewing legal structures to verify alignment with financial reporting requirements.
Phase 3 - Strategic roadmap and implementation plan
RSM developed a phased roadmap to implement these measures with minimal disruption to daily operations. This plan included system reconfiguration, process automation and training initiatives to ensure smooth adoption across the organization.
Outcomes
By acting on RSM’s recommendations, the company significantly improved their financial reporting accuracy, reduced their operational complexity and enhanced their cash flow management. The consolidated entity structure simplified compliance and month-end close processes, while the integration of the procurement tool streamlined payables, reducing processing times and increasing vendor satisfaction.
With NetSuite now optimized for scalability, the company is well positioned to support future growth while maintaining operational efficiency. The successful engagement provided a transparent, actionable strategy for NetSuite to continue to serve as a robust foundation for the organization’s financial and operational success.