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Accounting Software Reviews

Is Oracle NetSuite the right multi-currency accounting tool for SMBs?

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"It's a great tool, but not for everyone," is the candid feedback often heard when discussing Oracle NetSuite. Oracle, ranking as the third most popular software company globally, offers NetSuite – a cloud-based Enterprise Resource Planning (ERP) software that integrates various business functions.

Companies across various industries turn to NetSuite for its ability to unify and automate core business processes, providing real-time insights and efficiencies. While the tool has a lot to offer, its multi currency features are particularly valuable for companies engaging in international trade, as it allows for seamless handling of transactions in multiple currencies.

A Brief Overview of Key Features:

Activating the Currency Exchange Rate Types feature in NetSuite OneWorld accounts can be a cumbersome task. It necessitates the initial enablement of both the 'Multiple Currencies' and 'Intercompany Framework' features. Following this, NetSuite automatically assigns a 'Default Currency Exchange Rate Type' to existing rates, adding complexity with a new mandatory 'Exchange Rate Type' field for currency exchanges.

From a currency management standpoint, NetSuite comes preloaded with major currencies like CAD, EUR, GBP, and USD, and supports all ISO 4217 standard currencies. For each currency, you must set a name, default locale, ISO code, and default exchange rate. The product’s feature extends to assigning multiple currencies to single entities, such as customers or vendors. In addition to flexible currency assignments, NetSuite ensures up-to-date and accurate currency conversion rates through its integration with financial data providers like Xignite or Refinitiv.

Lastly, the tool’s capability extends to handling currency revaluation, a critical feature for maintaining accurate financial records in a multi-currency environment. Currency revaluation in NetSuite accounts for fluctuations in exchange rates, measuring and posting changes in valuation as gains or losses.

Will it be suitable for SMBs?

NetSuite's multi-currency tool, with its expansive features, can be overly complex for businesses, requiring specialist knowledge for effective implementation. This complexity, combined with the necessity for technical expertise, significantly elevates costs. Moreover, the tool's demanding setup and maintenance can burden already busy accounting teams, particularly those not tech-savvy. Furthermore, NetSuite's high price point poses a substantial financial challenge, making it a less feasible option for businesses with tighter budgets or smaller operations. These factors collectively make NetSuite a less accessible solution for many, warranting careful evaluation before adoption.

Are you looking for a straightforward tool to kickstart your multi-currency transactions with ease?

Finofo simplifies setup and transactions, offering a user-friendly interface and algorithmic efficiency with flat spreads on exchanges. Its intuitive design and straightforward UI make global financial transactions a breeze, redefining ease of use in the fintech world.

Let’s get started today!

Karthikeyan Sundaram