Automation of accounting functions is increasingly becoming popular. Software solutions are being developed every day to automate even some of the most basic accounting functions. It is important for organizations operating in the present day corporate environment to adopt effective methods of automating both their core and non-core accounting functions. This will serve to increase the overall effectiveness of the entire accounting department in an organization in addition to decreasing incidences of error that might arise due to inadequacies in manual systems.
One of the most effective accounting software solutions is NetSuite and Razor Inc. is one of those organizations that have greatly benefited from the introduction of NetSuite as part of its intuitive to upgrade its accounting system. NetSuite is an effective accounting software solution that provides a seamless interface, which facilitates a combination of both the core and non-core accounting functions of the business organization. Some of the accounting functions that are integrated in this software solution include: general ledger, accounts receivables, and accounts payables.
In addition to that, NetSuite also enables users to easily generate accounting reports that are important in facilitating various decision making functions within the organization.
Generation of accounting reports is indeed one of the most vital functions of NetSuite accounting software. Accounting reports are a summary of the financial position of an organization at any one given time. In order to generate these reports, the system makes use of information from various accounting records including the general ledger accounts receivables and accounts payables. Information from these sources is then integrated and summarized into a single report that gives an overall outlook of the financial position of the company.
Accounting reports are very important as far as managerial decision making and policy formulation are concerned. This is attributable to the fact that the summary contained in these reports enables the managers to have an overview of the financial position of the company. The managers are then in a position to compare the information contained in this report with the operational goals and objectives of the organization and, thereafter, make decisions based on these reports. In addition to that, managers can also make long term decisions and policies affecting the operations of an organization based on the information contained in these accounting reports. Policies are important as they enable the organization to align their day to day operational activities with the mission and objectives of the organization.
Apart from the software itself, another requirement in order to use this software is a computer of reasonable capacity in terms of memory and processing speed. Precisely, the minimum requirements for a machine to run NetSuite software is an internal memory of at least 2 gigabyte and a processing speed of at least 3 GHz.
The main costs that were incurred in the implementation of NetSuite as part of Razor Inc’s included a few upgrades to the hardware, the machines that were to be used in running the system, and the cost of acquiring the software. This meant that implementation of this software solution was not a very extensive affair and it was completed within a period of one month. In fact, most of this time was used for training various personnel including the management who were to interact with the software on a regular basis.
The training of the management entailed teaching them how to identify and interpret the automatic reports generated by the system. The other members of staff were trained on various aspects that were specific to their duties, for instance, the cashiers were trained to use the accounts receivables component of the system so that they can easily record transactions in a timely and more accurate manner.