For every business organization, what they require is a basic accounting solution, but for some businesses, if it operates on a comprehensive and highly sophisticated platform they solely require an entirely different treatment.
Multi- book accounting can easily tackle the accounting issues that arise as it operates on the cross-country level. This application can function in multiple jurisdictions with distinctive accounting principles or different Industries. Corporate charts of accounts are used in parallel to solve the issue but it is unable to capture international compliance and reporting.
In this regard, NetSuite Multi-Book accounting is one of the powerful and responsive accounting solutions, evolved to meet the industry-specific accounting needs.
Multi-Book accounting possesses the ability to comply with multiple sets of financial books, issues, and other financial statements concerning different accounting standards.
When Do You Need A Multi-book Accounting Solution?
Multi-book accounting advocates the companies to constitute charts of accounts, Book specific items and processes such as expense amortization, revenue recognition, monthly closing, and so on. The question is, How do you know that your organization needs a MultiBook Accounting Solution?
Your organization require a Multi-book accounting solution if there are;
• Different tax reporting requirements.
• If your business is operated in different time zones and locations.
• Maintaining subsidiary organizations.
• Multiple accounting standards.
• Handling multiple teams in different branches etc.
Types of Multi-Book Accounting Records
Multi book accounting owns two different types of accounting records.
1. Book Generic
Book generic accounting record deals with all transaction-related records except book specific.
• Records are created across all books.
• Entity records.
• CRM records.
• All transaction types except book-specific.
2. Book Specific
Book specific accounting records help to deal with book-specific attributes available in the book generic records.
• The record is created only in one book.
• Book-specific attributes are available in the book generic records:-
• Book generic transaction records.
• Item Records.
• Book specific journals.
• Portlet settings (accounting book drop-down page).
Characteristics of NetSuite Multi-Book Accounting
Netsuite multibook can generate and report financial statements based on multiple accounting demands. NetSuite multi-book accounting has the following unique characteristics.
• Multi-Book consists of five books for different accounting treatments.
• As per the multi-book accounting, the basic structure of the company may be created accordingly to the primary book.
• It possesses a historical transaction processing feature.
• Historical GL impact can be deleted in secondary books.
• Easy to share with multiple subsidiaries.
• Able to use different currencies per subsidiary in each accounting book.
• Each of these books can be reported and aligned separately.
• Automated financial posting to different books.
• Revenue recognition, amortization, allocations, and currency revaluation transactions can be easily doable.
• It is possible to proceed with manual adjustments and entries per book
• Making depreciation schedule per book
• Created Book specific items, charts of accounts as well as procedures including revenue recognition, expense amortization, monthly, and closing.
NetSuite Multi-book Accounting Features
NetSuite multi-book accounting has the following features:
1. Extensive Reporting and Analysis
NetSuite has extensive capabilities for creating Standard financial reports and customizable saved searches. NetSuite offers intuitive user interface dashboard and toolset, helping the easy development of the same. Users can easily down to real-time the answers. key performance indicators can be managed and analyzed effectively. These reports are available for internal and external reporting.
2. Automated Accounting
NetSuite Multi-Book has the inbuilt feature with highly responsive themes. It restricts data entry duplication and manual adjustments for accounting and reporting processes.
Multi-book accounting has a rule-driven engine. Automated enrolling in business transactions, pre-built mapping, and posting the activity to multi books. Automation is another key feature that owns pre-built mapping capabilities. It is highly flexible to record all book-specific activity concerning a single business transaction for the P&L allocations, general ledger, expense amortization, revenue recognition, depreciation, and many more. It allows the users to make a connection among primary and secondary charts of accounts.
3. Comprehensive Customisations
With NetSuite Multi-Book accounting, the users can automate and customize financial processes whether it is new or existing financial processes or accounting rules. It allows easier creation of custom forms, workflow, records. It also creates an environment to map different business processes.
It is integrated with powerful scripting capabilities that aligned seamlessly across the system. Multi book accounting provides Suitecloud customization competence.
4. Foreign Currency Management
Multi book accounting is rich with the following benefits: automation in calculating exchange rates, with realized and unrealized foreign currency gains/ losses in compliance with ASC 830, SFAS 52, and other foreign currency management regulations.
It can also prevent the errors for revenue recognition, lease accounting, insurance, and other rules related to differences in ASC and IFRS standards.
• Functional vs Local Currencies: Multi-Book accounting can be customized using the multiple subsidiaries to report across multiple currencies. It is useful for the situations to generate financial reports in local currency as the subsidiary uses a different functional currency.
• Different Accounting Principles: Businesses can proceed with country-specific accounting standards.
• New Revenue Recognition Principles: Multi-Book allows users to track transactions on different Revenue Recognition practices. It produces comparative reporting for Quick and efficient setting up of charts of accounts, Book specific items, and processes such as expense amortization, revenue recognition, monthly, and closing and financial reports for comparative reporting.
• Historical transaction processing: It distributes the accounting impact of existing transactions to the selected books. It needs to be done before activating secondary books.
• Process open transactions: To process open transactions before an effective period. It will not appear on the HTP page if the effective period is the first period in the system.
Top 10 Key Benefits of NetSuite Multi-book Accounting
Multi-Book accounting has the following benefits added to the NetSuite.
1. Optimization of financial processes by adding concurrent posting to all books without the replication of data entry and post adjustments.
2. Facilities to create ongoing compliance
3. Engaging communication with stakeholders
4. It exhibits new accounting rules, tax laws, and other changes in the generated reports.
5. Real-time visibility
6. Flash report financials for any accounting book
7. Efficient financial management capabilities
8. Necessary customizations in accounting processes
9. Easy assigning of fixed assets using different currencies, multiple accounting books, and/or depreciation methods.
10. Capabilities on subsidiary-book relationship mapping capabilities.
For every business, it always requires a customized solution to match up with their emerging needs and functional well being. NetSuite meets these requirements and recommends active solutions from time to time to accomplish business success with NetSuite features. NetSuite multibook accounting enables an environment to achieve optimized financial close process, Ongoing compliance, Real-time visibility, and effective financial management across the enterprise.
Jobin and Jismi IT Services LLP have deep expertise in providing end to end NetSuite development services to enterprises seeking for growth and development. Our broad experience and expert team ensures a perfect mix of success and compliments your business growth. Drop your queries to email@example.com and receive a free consultation right away.