How Centralized Accounting Can Enhance Compliance Needs
Multinational companies (MNCs) have grown exponentially in both numbers and economic relevance over the last 50 years. Access to large and growing markets and the need to optimize production processes have pushed these firms to venture out of their home countries, supercharging their bottom lines.
Managing multinational operations is no easy feat—it increases compliance needs and many local and international standards need to be addressed proactively. NetSuite OneWorld was specifically developed to meet the complex needs of multinational and multi-subsidiary firms.
NetSuite’s Multi-Book module is a premium tool that offers centralized accounting for multiple accounting books. It’s powerful processing capabilities can run, maintain, and report on various accounting books simultaneously within NetSuite.
In this blog, we’ll discuss the key features and applications of NetSuite’s Multi-Book module.
The Multi-Book module allows organizations to maintain five different accounting books within one system. It’s free for NetSuite OneWorld users and integrates easily with NetSuite’s basic accounting functionalities.
Key features include:
- Charts of Accounts Mapping: This feature has an additional filter known as ‘Restrict to Accounting Book,’ which prevents accounts from one book to be shared with another. Users can choose which accounts can be shared across books and which cannot.
- Foreign Currency Management: Meet local reporting policies with ease by generating financial reports in different currencies.
- Revenue and Expense Management: All revenue and expense transactions are recorded differently depending on the book.
- Accounting Period Closing Flexibility: Managing and closing several accounting books is time-consuming; Multi-Book gives users the option to close each book independently. This allows for additional flexibility, as users can define closing priorities themselves.
Common Application Scenarios
Each accounting book can be configured to meet different accounting standards and rules so each transaction will be documented differently across all books.
Thus, the Multi-Book module is beneficial for companies working with:
- Various Currencies: An organization’s functional currency may be different from the local currency. To draw up financial statements in local currencies, books can be configured to report in a different currency.
- Different Accounting Principles: Various international and country-specific reporting standards can be difficult to manage manually. With Multi-Book, the process becomes drastically simpler as users only need to input different accounting rules in each book.
- New Revenue Recognition Principles: If your company wants to adopt new Revenue Recognition Principles, the module can track transactions under both revenue recognition practices in parallel.
Choose a reliable NetSuite Consulting Partner
Choosing the right NetSuite implementation partner is a critical decision. At Ravenstone Solutions, we excel at helping firms take advantage of NetSuite’s full capabilities by recommending the best add-ons and customizations.
Get in touch with our NetSuite experts at 1(800) 459-7128.