Four Questions to Answer When Preparing for a NetSuite Implementation
Once a biotech organization has decided to move forward with NetSuite as their enterprise resource planning (ERP) solution, there are several questions that you should consider. Here are four critical questions accounting teams should be able to answer when preparing for the implementation:
What adjustments are needed to my chart of accounts? Setting up the accounts, departments and programs is not an exact science. Over time, if left unchecked, these can evolve into a mess. A NetSuite implementation is a great opportunity to clean up the chart of accounts. In my opinion, a best practice is to set up a chart of accounts that is flexible and can grow with the organization..
How do I want my historical activity to be brought over into NetSuite? Historical activity will be brought over with a journal entry recording the change in balance over the period. Depending on how much history your company has and the need for historical data to be included in a potential public filing, I would bring over monthly data for the current year, quarterly data for the previous two years and annual data for anything older. Keep in mind that any changes to the chart of accounts will need to be incorporated into these journal entries.
What modules to I want to put in? For most biotech organizations, I would recommend using fixed assets. Fixed assets are painful to manage in Excel and NetSuite’s fixed asset module is an upgrade from Excel. Other modules to consider are project management, OneWorld (if you have multiple entities, such as a Massachusetts Securities Corp), and Advanced Procurement.
What implementation partner will I use? The implementation team is almost as important as the software. For a NetSuite biotech implementation, I would recommend using Sikich. Sikich’s SuiteSuccess for Life Sciences program offers the know-how of numerous life science implementations at a reduced rate. In my experience, this is a great offering for a small accounting team in the biotech space. In addition, they offer additional functionality, developed by their team, for tracking clinical accruals.