Six accounting clean up items to address before implementing NetSuite

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The NetSuite implementation is an intensive process for your team. Preparing for this project will ensure you have sufficient time and resources to execute it successfully. Here are six steps to prepare your accounting files for a transition to NetSuite:

• Clean up the chart of accounts (COA) - at the start of the NetSuite implementation, you will need to load the COA. It is prevalent for teams to change the COA with a new accounting system. Start early. Identify and meet with key stakeholders to shape this document. Add definitions to ensure all users know when to use each account. Finally, map how the legacy and new accounts correlate. Check out these other articles for helpful tips, including considerations when creating the COA and common biotech COA structures.

• Clean up the vendor and customer list - you will load a vendor and customer list similar to the COA list at the start of the project. Consider consolidating duplicate records. If you update entity records, track changes in the system, not in Excel. Finally, deactivate any unneeded entities.

• Clean old uncleared checks and deposits - at the NetSuite go-live date, you will import all outstanding bank transactions for the first bank reconciliation. Before completing this import, review any old uncleared checks and deposits. Voiding and reissuing these transactions in QuickBooks will be easier than doing this in NetSuite, especially if you are not importing detailed transactions.

• Clean unapplied accounts receivable (AR) and accounts payable (AP) transactions - at the NetSuite go-live date, you will import all open AR and AP transactions. Before completing this import, apply customer/vendor payments to the appropriate invoice/vendor bill. Also, don’t forget to address offsetting journal entries tagged with an AR or AP account that net to zero. Finally, add a Name to any journal entries to prevent a No Customer/Vendor line on your opening AR or AP subledger.

• Clean up the prepaid support files - at the implementation go-live date, you can allocate prepaid balances to an amortization template to utilize the amortization journal entry functionality. Start by removing any fully amortized items from the support file. In addition, add the new segments (account, department, class, and location) to the support file so you can quickly prepare the reclassification journal entry.

• Clean up the fixed asset support files - if you plan to implement the fixed asset module, you must import the fixed asset records at the go-live date. This support file includes key information, such as asset type, useful lives, and monthly depreciation amount. Consider implementing an asset tagging system. While not required by NetSuite, this practice will help your organization conform to SOX requirements and make the financial statement auditors happy.

The right team to prepare and execute this massive project is critical for success. OptimalData Consulting will design, load, and validate the data migration component of your NetSuite implementation. Contact us to get your personalized data migration plan today.