NetSuite vs Intacct: Adopting Cloud based Accounting Systems

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.

1. 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.
2. 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?”
3. 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.
4. 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.