Managing Organizational Complexity in BioTech: NetSuite’s Edge Over QuickBooks

BioTech companies often have multiple subsidiaries and operations across different regions. They engage in joint ventures, acquisitions, strategic alliances, and partnerships. They also may have multiple entities for financial purposes. With operations spanning multiple countries and currencies, BioTech firms require robust systems to streamline processes and ensure accurate financial reporting.

QuickBooks and Excel keep BioTech firms stuck in silos, while NetSuite enables multiple-entity management in one location without an app—providing the visibility and flexibility companies need to raise funds, go public or scale.

How NetSuite Helps Smooth Organizational Structure

Teams are working within the limitations of Excel spreadsheets, QuickBooks, and manual data transfers. There’s a better way: NetSuite offers the BioTech industry purpose-built features that help them with managing the complexities of their multifaceted organizations.

Single Login to Manage Multiple Entities

All entities can be accessed and managed through a single login. The solution offers a centralized approach to administrative processes, lessening the likelihood of errors, and enhancing the organization’s overall efficiency and visibility.

Setting Up Multiple Levels of Hierarchy to Accommodate Organizational Structure

The platform allows users to set up organizational layers and multiple levels of hierarchy within the system. These scalable structures allow detailed financial tracking and reporting at each level. They give BioTech firms real-time insights into the performance of different segments of the organization. Businesses can also put controls into place to limit who can access what and at what level.

Setting Up Entities in Different Countries and with Different Currencies

NetSuite allows the setup of entities in different countries, including transactions in multiple currencies. This capability is crucial for any company working in international markets, as it ensures compliance with local regulations and accurate financial reporting across different regions.

NetSuite’s Consolidated Reporting

Accurate financial reporting is essential to make informed decisions, comply with regulations, and scale either through funding, acquisition, or going public.

Single-Entity Reporting in Base Currency of Each Subsidiary

NetSuite allows single-entity reporting in the base currency of each entity. This capability ensures each entity’s financial performance is accurately tracked and reported. It’s also essential for complying with regional accounting standards and regulations.

Automated Calculation of Consolidated Exchange Rates

Managing exchange rates is critical for BioTech companies operating in multiple currencies. NetSuite calculates consolidated exchange rates, including average, weighted, and historical data. Automation reduces the risk of manual errors, ensuring financial reports are accurate and up to date.

Intercompany Automation for Managing Transactions

BioTech companies frequently engage in intercompany transactions. NetSuite automates intercompany accounting for more efficient transaction settlement. Benefits include reduced administrative burdens, fewer errors, greater tracking, and enhanced operational efficiency.

Automated Intercompany Elimination Entries at Month-End

Month-end closing processes are time-consuming and error-prone, especially with intercompany elimination entries. NetSuite automates the elimination of intercompany transactions at the end of the month, ensuring accurate consolidated financial statements and avoiding the need for manual adjustments.

Native Intercompany Elimination Reports

NetSuite provides native intercompany elimination reports, offering a clear and transparent view of these transactions. These reports are essential for financial audits and help maintain the integrity of consolidated financial statements.

Improving BioTech’s Currency Exchange Rate Management

NetSuite addresses currency fluctuations by automatically realizing real-time gains and losses on settled foreign currency account balances. Automated processing ensures that your financial statements reflect the actual economic impact of currency movements.

Revalue Open Foreign Currency Balances as Needed or at Month’s End

Unrealized gains and losses on open foreign currency balances can also affect financial reporting. NetSuite allows the revaluation of open foreign currency balances as needed or at the end of the month. This flexibility creates a more accurate picture of the company’s financial position.

BioTech and Financial Agility

NetSuite allows even the most complex BioTech organizations to better manage operations and finance—without multiple instances of spreadsheets or QuickBooks.

NetSuite simplifies cross-entity processes, enabling companies to manage a flexible financial structure so that BioTech companies can maintain their competitive edge while focusing on the innovative treatments that save lives.

Sikich is a proud NetSuite partner. Contact us to see what this platform can do for your BioTech firm.