If you’re thinking about adopting new accounting systems, you may be contemplating this question: do you choose NetSuite or Intacct?
To help answer this question, we should first understand what makes these platforms similar – that is, the Cloud. Both are platforms that fully embrace cloud computing and exploit the benefits of moving away from an in-house IT solution. As I’ve mentioned before in previous articles, cloud computing has many advantages, including being cost-effective for small and growing businesses, being up-to-date on security protocols, and allowing an easier path for remote access to the system.
The Difference Between NetSuite and Intacct
As a bit of background, NetSuite has been around since 1998, and can boast that approximately 10,000+ companies (update September, 2013: 16,000+) are currently using the software. In contrast, Inacct is newer and has approximately 5,000+ companies using it.
- Accounting – Intacct prides itself on being a solid accounting system, which includes the general ledger such as accounts payable, accounts receivable, etc. It functions and takes care of fundamental operations. NetSuite, in turn, also has a powerful, single transaction model of accounting. The key difference is that Intaact is more batch oriented in its accounting processing model. However, NetSuite offers a larger view of the business through its combined CRM and ERP, allowing for a 360 degree view of how accounting, operations, sales and marketing sync up. Intaact does not have anything natively comparable. Both solutions will get you off QuickBooks especially if you are in pain.
- Wholesale and Manufacturing – NetSuite is stronger in these areas, providing more robust inventory management. The NetSuite model gets strong marks serving this market due to its combined CRM and ERP. For more on NetSuite’s ERP, you can read my article on “What is ERP?”
- Ecommerce – NetSuite’s native online store and shopping cart sales platform is something that Intacct does not offer. And NetSuite has just released its next generation “Ignite” Ecommerce capability which has the community buzzed.
- CPA Use Model– Intacct has targeted traditional CPA firms as customers, primarily because these firms will oftentimes run the books and financial reporting for their small business clients that need basic bookkeeping and financial reporting. On the whole, Intacct organized themselves to cater to these needs, allowing their license to extend to CPA firms that manage these kinds of small businesses. NetSuite has a different offer, called OneWorld, which is designed for multi-company operations. NetSuite’s system is designed to work better for companies that have true multi-subsidiary, multi-parent organizations who need consolidated statements and other kinds of documents. Because of this difference, NetSuite is priced to accommodate true multi-operations companies, whereas CPA firms, which tend to work for smaller businesses, might find Intacct’s licensing model more compelling when it is running books for other companies.
On the whole, compared to Intaact, NetSuite is a more mature platform. NetSuite has been around longer, its platform is more extensible, and it has built a solid community of users and partners that can add value. Intacct, in turn, is newer, but they are continuing to make investments and broadening their user and partner base. And as Intacct continues to participate in cloud-based computing eco system fostered by Salesforce.com, they will continue to grow.
However, there is a large difference between NetSuite and Intacct. NetSuite, being a fully integrated system, offers a wider scope of business functions. Intacct, because it doesn’t have the scope of these capacities, is positioned as one piece of a multi-piece puzzle. Software companies that are narrow like this like to be referred to as a “best-in-breed” platform. Read my article, “Best-of-Breed Business Systems: Traps & Lies” to gain an uncommon perspective on this computing approach. When considering choosing a business software platform, the key to a good decision is to assess the current and anticipated business situation and bring in the best tool to satisfy your requirements. Many times, there are existing investments, such as Salesforce.com, that will heavily influence the tool of choice.
For example, we have a client that loves their Salesforce.com system. They came to us to get off QuickBooks and implement advanced revenue recognition. They had existing integrations with a cloud-based recurring billing platform and a third party professional services tool. Intaact was the first application that came to mind as a fit — and the client was already in evaluation. NetSuite was in the selection mix even though I offered that the NetSuite solution could eliminate many of the existing tools in place including Salesforce.com. At the end of the day, the client elected to go with NetSuite for the power of the general ledger coupled with the revenue recognition module while playing safe due to the platform maturity. Even though I believe, over the long-term, the client’s costs will be higher, there is no way the client is going to rip out existing systems that are serving them well just to be in a different computing architecture.
Here is a recent article by Karen D. Schwartz that speaks generally about NetSuite and Intacct. I disagree with the author on one point — she indicates that NetSuite does not have a native CRM. She is mistaken as I discuss how NetSuite works in this article. I may need to write a future article where I show that NetSuite CRM is simply an intelligent marketing mechanism designed so they can compete and make direct offers to companies that are strictly searching for a CRM system. NetSuite simply shuts off major portions of their software during provisioning through configuration switches — but this is far different than being another system. It’s all one database and that becomes quite evident as you activate other transactional capacities.
Learn More
If you would like to have a detailed review of NetSuite, let’s talk. I can set you up to meet the right NetSuite Sales Professionals, help you understand pricing, and plan your implementation.
Marty Zigman
Holding all three official certifications, Marty is regarded as the top NetSuite expert and leads a team of senior professionals at Prolecto Resources, Inc. He is a former Deloitte & Touche CPA and has held CTO roles. For over 30 years, Marty has produced leadership in ERP, CRM and eCommerce business systems. Contact Marty to set up a conversation.
More Posts - Website - Twitter - Facebook - LinkedIn - YouTube
Marty,
Couple HUGE differences is that NetSuite offers a much broader solution than Intacct. For Software/technology companies, the following modules are available from NetSuite that would require a third-party solution from Intacct which increases the overall cost and complexity of the Intaact Solution:
1. Incentive Compensation
2. Fixed Assets
3. Contract Renewals
4. Professional Services Automation
5. Payroll
6. Recurring Billing/Usage Based Billing
In addition Intaact’s customer list for Public Companies is dwarfed by NetSuite’s list.
Good article. I am in the process of installing NetSuite for my start up Social Commerce firm, and my decision process in the selection of NS reflected many of the points made in the blog and comments. The ability to leverage a central database against all the business functions was the selling point for me. NS might not have the best CRM or the best accounting package, but the ability to “hide the spaghetti” of all the custom connections between platforms is the best. Best of breed is great when you have significant excess cash, but for startups and small enterprises its hard to beat NS.
The one issue that we are learning of, and mitigating, is the need for some higher end implementation pro services. Not sure their PS team is structured to provide that. Great folks, but more Configurators than Consultants.
All in all, we cant wait to get it implemented, this will change our ability to scale the business.
Hi Kurt,
I suspect this article about Best of Breed would directly address some of your specific concerns. I am curious if you see it in a similar fashion?
https://blog.prolecto.com/2010/01/26/best-of-breed-business-systems-traps-lies/
I understand your assessments about NetSuite Professional Services. I wrote a bit about it here:
https://blog.prolecto.com/2010/01/26/best-of-breed-business-systems-traps-lies/
We have something called a Care Methodology in our practice. It boils down to listening first to the business, bending both practices and the tool to fit the situation, all in the space of what is relevant relative to our client’s timing and investment. I will be writing about it more soon.
You say Intacct is newer than NetSuite but Intacct was founded in 1999 about the same time as NetSuite. Also i’m pretty sure they are a lot smaller than the 5k vs 10k customers suggests, i believe they are at least 10x smaller in revenue than NetSuite, so given that customer count they must really serve very small customers
Hi Jim,
I think it would be good to get some grounded numbers down so the community is not confused. Per an Intaact news release at http://us.intacct.com/about-us/press/intacct-continues-explosive-growth-record-quarterly-and-full-calendar-year-results, 5,000+ customers are touted. Doing some quick math looking at NetSuite’s 2011 10k filing (http://www.sec.gov/cgi-bin/viewer?action=view&cik=1117106&accession_number=0001117106-12-000007&xbrl_type=v#), NetSuite’s claim for 10,000 customers seems completely plausible.
In my experience, it seems like all companies in this industry “inflate” numbers when they market. I invite the folks at Intacct and NetSuite to offer up thinking or references. Bottom line though, it’s really about customer fit. NetSuite, in my mind, has a broader offer. I don’t know of another fully-integrated business platform offering (and I really mean platform in the extensibility context) that is competitive in mid-market marketplace. But I think Intacct’s narrow focus can serve certain customers quite well.
Marty
Netsuite has gained popularity in very small time as many companies had implemented it due to its rapid and ordered action path
http://www.imr.com.mx/
Recently, Jordan Krizman, of 360 Cloud Solutions, just posted an article about a CFO’s perspective contrasting NetSuite to Intacct.
Thanks for the article. It’s interesting that there seem to be no hosted ERP competitors for NetSuite, given that Intacct is going after the ‘best of breed’ approach. Now that NetSuite costs a minimum of $10,000 per year,They are clearly abandoning the small business market. While I can understand why they might do this, it seems to leave a gap looking for an all-in-one solution.
Hi David,
There will surely be new offers in due course. My instinct tells me that ERP, when you get more than 20 people working together, is demanding to implement and fully utilize. The power of NetSuite being a full solution is that it drives department coordination. For many organizations, it seems they are not mature enough to work in a fashion that produces synchronous processing. Hence, best of breed is more forgiving because it allows latency and some noise into the process. It also is easier for department managers to make commitments to point solutions — that will always be the case because less actors are impacted.
As far as the small market, my observation is that ERP is simply less relevant. They don’t need the scale considerations. A few actors can work well together with limitations in information systems because of the sheer number of matters they are holding together. I think the $10,000 annual mark is about right — it helps separate out small business customers from larger ones ready to value and embrace NetSuite’s offer.