Netsuite: Staffing Firm Accounting
Staffing firms have a lot of moving parts. You want to make sure that your employees and clients are a good fit, and that your bases are covered when it comes to your staffing firm’s accounting. But, as a small business owner, you may not have the time or expertise to efficiently complete your staffing firm’s bookkeeping and tax planning. Outsourcing these core functions to an experienced team of staffing firm CPAs can have a huge impact on your bottom line. Our team of accountants is able to utilize their bookkeeping expertise along with Netsuite’s automated enterprise system to can help address financial issues and streamline your accounting functions.
What is Netsuite?
Netsuite is a robust online financial planning and accounting service that simplifies the whole staffing firm bookkeeping process through a single system. It's an essential tool for any company that's migrating part or all of their business functions to the cloud. This modern, cloud-based financial and customer retention (CRM) platform can streamline business-critical processes and reduce costs while offering superior scalability.
Netsuite keeps you agile and profitable by helping you manage expansion and keeping in compliance with newer regulatory standards like ASC 606 that take a principles-based approach to revenue recognition, tracking, and reporting. You are able to keep on top of the latest requirements in addition to using Netsuite for overseeing front- and back-office processes that include:
Fixed asset recording
These capabilities are essential in a high-growth industry like staffing, where your best asset is people. Implementing Netsuite into your firm will simplify everything from how you handle reporting to your staffing firm tax planning that's meant to reduce your exposure and avoid audits.
Reconcile compliance with modern automation
Netsuite uses a five-step approach that's in line with evolving changes in regulatory standards and categorizing revenue streams. Here's how it reconciles compliance with modern automation and puts them to work for your business.
Step 1: Identifying Customer Contracts
Through a Netsuite function called “Revenue Arrangement,” you link transactions from client contracts to your revenues in the same manner as revenue sources like sales invoices, billables, and purchase orders. This feature provides clarity and transparency in your business.
Step 2: Identifying Performance Obligations
When your product is your people, transactions and performance obligations are harder to tie to specific revenue elements. With Netsuite, each line is assigned as a Revenue Element within the Revenue Arrangement with specific rules and identifiers.
Step 3: Setting Transaction Pricing
The sales invoice pricing on a contract is the payment terms of that contract. Netsuite automatically updates any changes in pricing or terms so that any changes in the contract are accounted for in a timely manner.
Step 4: Allocating Transaction Pricing To Specific Performance Obligations
The built-in Revenue Allocations function is part and parcel of the Revenue Arrangement function and all of its elements. It accounts for fair market value and pricing and then allocates revenue across the Arrangement in the correct proportions. This is especially helpful when offering discounted services and other financial transactions that require changes and reallocation of revenue.
Step 5: Recognizing Revenue As Performance Obligations Are Met
In addition to forecasting plans, Netsuite allows you to determine when and how revenue is recognized. It will then automatically link these streams to the corresponding GL entry when it's time to post them. All of these are geared toward providing your staffing firm with comprehensive, timely revenue tracking and reporting. Our team of staffing firm accountants is able to use the revenue metrics generated using Netsuite to help you create a custom financial plan and budget for your staffing firm. If you want to learn more, click the button below to schedule a complimentary discovery call with a CPA today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.