When I joined Pure Escapes as Finance Director, the company was in the process of transitioning to NetSuite. We had a custom-built in-house reservation system, that we wanted to integrate with our accounting system. After talking to several NetSuite implementation partners, we were sold on the idea that it would automate our processes, integrate to our in-house system and boost productivity in our finance team. Unfortunately, the reality didnāt align with the promise.
During the implementation, there seemed to be quite a few limitations of NetSuite that were not anticipated or discussed during the sales process. After investing so much time in the setup, we had to face the fact that the system wasnāt delivering what we needed.
Thatās when we decided to move back to Xero, and due to the work put into creating the opening balance reconciliations for the NetSuite implementation, the process was far smoother than I expected. Weād only been using NetSuite for about six months, so uploading all our bank statements and reconciling them in Xero was surprisingly easy. What took three to six months with NetSuite, we managed to do in Xero in just one month.
Hesitation at first
I wonāt lieāI was hesitant at first. My finance team had spent a lot of time learning how to use NetSuite, and the thought of starting over was daunting for all of us. But after some serious conversations with senior management, we couldnāt justify the ongoing cost of NetSuite, especially considering the results we were getting.
Yes, Xero had its limitations when we first made the switch to NetSuite, but by the time we were looking to go back, things had changed. The Xero app ecosystem had grown a lot, and after digging into reviews and researching the available apps, I realised there were affordable solutions to all the challenges weād faced before.
The deciding factors
We encountered several challenges with NetSuite that ultimately pushed us to choose Xero as a better fit for our evolving needs. Simple tasks like bank reconciliations took much longer than they did in Xero, and we also had currency restrictions across our different companies unless we were willing to pay significantly higher licence fees.
The accounts payable process was another sore spot. NetSuite just didnāt have the automation we neededāit couldnāt handle emailing invoices for easy processing. Reporting was another headache. It was overly complex and required more investment just to integrate with Excel. And on top of all that, getting access to NetSuiteās app ecosystem came at a much higher cost, which felt frustrating given that we were already paying enterprise-level prices.
Why we chose Xero + its ecosystem
Once I dove into how much the Xero app ecosystem had developed, it became clear that moving back was the right decision. Iāve been using Xero in various roles for over 15 years, and the number of apps available to solve finance challenges has grown massively.
For us, apps like Mayday have been a lifesaver for intercompany reconciliations and recharges, especially since we have six companies in our group. Weāve also found great tools for accounts payable automationāthere are so many options now. And when it comes to reporting, we use Flex Financial Reporting and G-Accon, which let us easily integrate Xero with Excel and Google Sheets. These tools have made a world of difference for us.
The team was relieved to be back on Xero for bank reconciliations. With over 40 bank accounts across multiple currencies, what used to be a complex task is now straightforward and efficient with Xero. And with six companies in our group, Mayday has saved us a ton of time by automating our intercompany loan reconciliations and recharges, which used to involve complicated Excel spreadsheets and lots of manual effort.
My advice for finance leaders
If youāre a finance leader thinking about moving back to Xero from a larger ERP like NetSuite, my advice would be to really explore the Xero app ecosystem first. The challenges you think require an ERP can often be solved with a much more affordable solution within Xeroās app store.
And if youāre a finance leader thinking about moving from Xero to a big ERP, be mindful of the true cost of implementation. Itās not just the time and money spent on the implementation itself, but also the additional apps youāll likely need, which come with their own price tags. Plus, if you donāt pick the right implementation partner, the process can drag out longer than expected, adding to the frustration. |
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