IT and software companies have a unique set of challenges. Whether they are venture-backed startups or established entities, companies that offer software, apps, SaaS and internet technology need business systems they can rely on. They need a dependable back office solution that can power their business, fuel growth and drive international expansion.
On top of that, they have some very specific needs, such as: contract renewal; revenue recognition; keeping track of customer licensing information; notifying clients about contract expiry; recurring billing; overall contract cost versus invoice; and so on.
Through a number of deployments of NetSuite for IT companies, we’ve seen how this all-in-one business management suite has transformed software companies. Encompassing ERP, finance and accounting, CRM and ecommerce, NetSuite has a number of benefits for software and IT businesses.
Governance, Risk and Compliance
Software and tech companies are often the ones seeking venture capital or private equity investment, as they move towards IPO. So, for them, corporate compliance, internal governance and risk mitigation are crucial.
NetSuite incorporates features that safeguard correct governance, risk and compliance. It ensures the company and employees are abiding by the laws, regulations, standards, and ethical practices applicable to the business. NetSuite demonstrates that transparency and compliance is in place across the business, which can make an IPO more compelling.
And it seems that this capability is key. NetSuite has dominated the technology IPO market: in the five years 2015 -2019, in more than two-thirds of technology IPOs, the company was running NetSuite.
Revenue recognition management and compliance is often key in software companies, especially those that operate a subscription business model. For example, where a contract might be signed in May, NetSuite can automatically split the invoice into equal monthly amounts.
NetSuite simplifies revenue reporting, automating revenue recognition to save time. With its powerful allocation calculator, it automatically allocates arrangement consideration, allowing the business to meet the ASC 606 standards specified by the Financial Accounting Standards Board and the International Accounting Standards Board. With this functionality, software companies can make data-led decisions and accelerate their time to close.
Speed to Market
The tech and software market is a rapidly evolving landscape. Keeping pace in such a fast-moving environment is key for financial robustness. To thrive, companies need the agility to evolve and to innovate at pace.
NetSuite brings the agility for companies to adapt and navigate what is a highly disruptive market. If business models evolve, new products are launched, or payment methods change, NetSuite can be quickly configured to meet those needs. This allows software businesses to increase their speed to market – and retain competitiveness.
Real-time data insights also facilitate better, more accurate forecasting. NetSuite gives full visibility across the business, allowing for business decisions that are based on better business intelligence.
App and software companies will typically operate across borders. This requires them to take payment in multiple currencies and to account for different taxes, varied payment gateways and local shipping or carrier methods.
NetSuite supports global expansion with the ability to handle multiple languages and currencies, as well as local tax legislation. Where a software company operates globally, through several divisions or subsidiaries, financial statements are simple to prepare with NetSuite’s consolidated reporting functionality.
All of this streamlines the billing process. NetSuite is flexible too, effortlessly responding to changing needs that may result from globalisation and business expansion.
Internet and software companies often spring to life quickly. From a home office, to a funded startup or fledgling company, software businesses can rapidly scale up into thriving operations with a global presence.
Unlike any other system, NetSuite helps to support the rapid growth that technology companies experience. It can be deployed across divisions or subsidiaries with unparalleled speed. It is simple to scale as a company grows, employing multi-entity reporting, for example. And because the solution operates in the cloud, changes can be made quickly, with little interruption to the business, and without additional overheads. Whatever stage of its development a company is at, NetSuite offers a solid foundation for future growth.
To add to NetSuite’s already excellent functionality, NoBlue has created a solution built entirely within NetSuite, which brings further capabilities and incorporates additional software. This brings together a best-of-breed package, particularly suitable for software and IT companies, and acts as a unified platform solution for ERP, billing, and revenue recognition.
The NoBlue solution includes:
- Salesforce CPQ for complex contract management and accurate pricing with complex contract or product configurations.
- ZAB for complex billing scenarios. NoBlue is the only European implementation partner for this software, which is fully compliant with ASC 606 and is designed to handle everything from simple recurring billing to highly complex usage-based and variable billing scenarios.
- OpenAir for complex project management. Especially valued by companies selling professional services, this automates resource management, project management, project accounting and timesheet and expenses management.
Is NetSuite Right for Your Tech Company?
NetSuite powers more than 1,700 software and high-tech companies. Companies like HubSpot, DocuSign, DuoLingo, InfusionSoft, Hootsuite, Dropbox, EsNet, Zendesk and many more rely all rely on NetSuite’s advanced subscription, billing and revenue management features – not to mention its other functionality that make it the perfect system for the entire company.
At NoBlue, we’ve already managed a number of NetSuite deployments for software, technology and IT companies. Follow us on LinkedIn, Facebook and YouTube for new demos and webinars for this industry. Or subscribe to our newsletter to be notified when we add content for software and IT companies.