Why Switch from NetSuite to QuickBooks Desktop or Online
Businesses may consider various factors when transitioning from NetSuite to QuickBooks Online, with cost considerations often being the most significant. Let’s explore these factors in detail:
1. Cost Considerations
NetSuite is typically more expensive than QuickBooks, which can be a significant factor for small and medium-sized businesses.
A small business with 10 users might pay around $10,000 per month for NetSuite, whereas QuickBooks Online Advanced for the same number of users would cost approximately $1,600 per month. This substantial difference in cost can free up resources for other areas of the business.
2. Ease of Use
QuickBooks is renowned for its user-friendly interface, making it an attractive option for businesses without dedicated accounting staff. And it has its large ProAdvisor network, enabling small businesses to find and hire experts easily.
Let’s say you’re a growing startup. Your team members often need to input expenses or generate invoices, but they’re not accounting experts. QuickBooks’ intuitive design allows them to perform these tasks with minimal training, potentially saving time and reducing errors.
3. Scalability and Flexibility
While NetSuite is highly scalable, QuickBooks offers flexibility that can be more suitable for smaller businesses or those with fluctuating needs.
For example, if your business experiences seasonal fluctuations, QuickBooks Online allows you to easily add or remove users as needed. You can upgrade or downgrade your subscription based on your current requirements, providing more control over your software costs.
4. Integration Capabilities
QuickBooks has a vast ecosystem of third-party integrations, which can be particularly beneficial for small to medium-sized businesses.
Suppose your e-commerce business uses Shopify. QuickBooks offers a direct integration with Shopify, automatically syncing your sales data, inventory, and customer information. This seamless connection can save hours of manual data entry each week.
5. Local vs. Cloud Considerations
While both NetSuite and QuickBooks offer cloud-based solutions, QuickBooks also provides a desktop version, which can be preferable for businesses with specific security requirements or limited internet connectivity.
If your business operates in an area with unreliable internet or you have strict data locality requirements, QuickBooks Desktop could be a more suitable option, allowing you to keep your financial data on-premise.
6. Industry-Specific Features
While NetSuite offers comprehensive features for various industries, QuickBooks provides industry-specific versions that can be more tailored to certain business types.
For instance, if you run a construction company, QuickBooks Desktop Contractor edition offers features like job costing, change orders, and progress invoicing that are specifically designed for your industry.
Important Points to Remember Before Migrating the Netsuite Data to QuickBooks
- Before starting the transfer, you must first sign up for QuickBooks Online. You must log into your QuickBooks Online account after signing up.
- You must carefully fill out any welcome sections and create a company profile here.
- Correct any errors and issues with your NetSuite inventory before importing to prevent data loss.
- Because the conversion is automatic, there is nothing you can do in QuickBooks Online until it is complete.
- Following conversion, NetSuite data replaces existing data in QuickBooks Online.
- The greatest part is that before the process overwrites any data, a warning notice will appear on your computer.
- You will receive a confirmation email stating that the conversion from NetSuite to QBDT or QBO was accomplished.
- After the conversion is finished, you must review your data to make sure everything was correctly converted.
How to Migrate From Netsuite to QuickBooks: A Detailed Guide
Migrating from NetSuite to QuickBooks requires careful planning and execution. Here’s a step-by-step guide with specific details and examples:
1. Identify the Data to be Converted
Before beginning the migration process, it’s crucial to identify exactly what data needs to be transferred. This typically includes:
- Chart of Accounts
- Customer list and history
- Vendor list and history
- Employee information
- Inventory items
- Open transactions (invoices, bills, purchase orders, etc.)
- Historical transaction data
Let’s say your company has been using NetSuite for 5 years. You might decide to migrate the last 3 years of transaction history to QuickBooks, along with all current open transactions and master records (customers, vendors, items).
2. Export the Data from NetSuite
NetSuite allows for data export in various formats. Here’s how to export key data:
To Export the Chart of Accounts:
- Navigate to Setup > Accounting > Chart of Accounts
- Click “Export” and choose CSV format
To Export Customer and Vendor Lists:
- Go to Lists > Relationships > Customers (or Vendors)
- Use the “Export” function and select CSV format
For Transaction Data:
- Use the “Saved Searches” feature to create custom exports
- Set search criteria for invoices:
- Type: Transaction
- Transaction Type: Invoice
- Date: set your desired date range
- Save the search and export as CSV
3. Map the Data to QuickBooks
This step involves matching NetSuite fields to their QuickBooks equivalents. Create a mapping document to guide the import process.
Here’s what a typical mapping might look like:
| NetSuite Field | QuickBooks Field |
|---|
| Account Number | Account Number |
| Account Name | Account Name |
| Customer ID | Customer Name |
| Item Name | Product/Service Name |
| Transaction Date | Date |
| Transaction Amount | Amount |
4. Import the Data into QuickBooks
QuickBooks offers several methods for importing data:
Using the Built-in Import Data function:
- Go to File > Utilities > Import > Excel Files
- Follow the wizard to map your exported CSV files to QuickBooks fields
But because the data in NetSuite generally has a more complex schema than that of QuickBooks, you may want to consider using a third-party tool such as Dancing Numbers.
5. Verify the Data
After import, thoroughly check the data for accuracy:
- Compare account balances
- Verify customer and vendor information
- Check a sample of transactions for accuracy
To ensure accuracy, you might:
- Run a Balance Sheet report in both NetSuite and QuickBooks, comparing totals
- Check the Accounts Receivable and Accounts Payable aging reports in both systems
- Verify that the total number of customers, vendors, and items match
6. Reconcile Accounts
Perform a final reconciliation to ensure all data has been accurately transferred:
- Reconcile bank and credit card accounts
- Verify beginning balances for all balance sheet accounts
- Run comparative financial reports (P&L, Balance Sheet) in both systems
For instance, if your bank account balance in NetSuite as of the conversion date was $100,000, you’d want to ensure that the beginning balance in QuickBooks matches this amount.
Additional Considerations
- Customizations: NetSuite often includes custom fields and forms. Plan how to handle this custom data in QuickBooks.
- Integrations: Identify any third-party integrations you’re using with NetSuite and research QuickBooks alternatives.
- Training: Provide training for your team on the new QuickBooks system, highlighting key differences from NetSuite.
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