Editor's note: Up until now you may have thought that our 'App Aware' features were exclusively limited to apps (in the broad sense of the word) that only worked with QuickBooks. Think again. Our goal here at Insightful Accountant is to make you aware of any solution that might be 'just what you are looking for' even if it works with a different General Ledger, or even an ERP.
Today's App aware is a specialized solution that works with NetSuite... and we think it might be just what your growing clients are looking for.
Netgain launches NetSuite-native Shared Transactions Solution
As a business grows, issues of compliance grow with it. Netgain Accounting Solutions has introduced a new NetSuite-native solution for Shared Transactions intended to ‘audit-proof’ intercompany accounting.
Managing intercompany accounting for global or multi-entity companies is full of complexity, from regulatory compliance to financial risks. So, when you have to perform extra manual tasks to ensure arm’s length compliance for intercompany transactions, these burdens have already strained accounting teams.
Yet, arm’s length transaction compliance is crucial for businesses as they ensure audit readiness and protect against financial risks. You can’t take shortcuts regarding arm’s length compliance, but you can do it more efficiently with automation.
In many jurisdictions, regulators require multi-entity companies to treat intercompany transactions as if they occurred between two unrelated parties. This includes setting transfer pricing for intercompany transactions to have pricing identical to transactions with unrelated companies. The arm’s length principle helps ensure that the agreed-upon price of an intercompany transaction is near the fair market value and tax-compliant.
Arm’s length compliance requires a vendor bill for every intercompany invoice. Compliance involves manual tracking for intercompany transactions but may still leave room for error and can expose the company to unnecessary risks. Non-compliance can result in fines, impact investor trust, and invite regulatory scrutiny.
Attempting to manually comply with ‘arm’s length transaction principles comes with challenges for most businesses including the inefficiencies of manual processes that stress workloads and increase costs. As the business grows, these inefficiencies grow along with it. Soon, the volume of transactions required to remain compliant may not be sustainable from a processing and cross-checking standpoint. The inability to track and match the transactional history leaves the business with audit findings and possible penalties.
Netgain’s new NetSuite-native ‘Shared Transactions’ solution eliminates the risks of non-compliance and manual workload nightmares by allowing businesses to:
- Saved time and reduced manual workload and associated costs.
- Improved financial control with automatically aligned invoices and vendor bills.
- Improved audit readiness with a built-in audit trail.
While achieving accurate and real-time company invoice and vendor bill linkage for seamless compliance. With Netgain’s Shared Transactions for NetSuite, you can experience flexible allocation split-transactions to separate classes, locations, or subsidiaries within NetSuite in any proportion desired and automatically posting the proper journal entries.
Source: Netgain Shared Transactions webpage
Create allocation templates you can use at the line-detail level to save time.
Source: Netgain Shared Transactions webpage
Realize complete visibility and traceability with easy tie-back of your transactions. This new solution automatically generates matching vendor bills as soon as you create an intercompany invoice to ensure arm’s length compliance.
Source: Netgain Shared Transactions webpage
If this sounds like the solution you’ve been looking for when working with intercompany transactions between business components using NetSuite, then make sure to check out this Netgain webpage.
Disclosures:
Feature content was adapted from Netgain media source content, furnished in part by 10fold.com on behalf of Netgain, and the Netgain webpage(s) reference or linked herein. Graphic content adapted from Netgain webpage illustrations. Content created or otherwise adapted by Insightful Accountant from Intuit source content is furnished for educational purposes only.
Netgain's NetSuite-native solution for Shared Transactions is a product of Netgain Solutions, Inc. of Englewood, Colorado.
Other trade names or references used herein may refer to registered, trademarked or copyrighted materials held by their respective owners and included for informational and educational purposes only.
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