One of the most common questions businesses on the market for new accounting software ask is a big one: NetSuite or QuickBooks? Like most things in the world of ERP, the answer to this question is not which is better, but where do they fit.
At a very high level, QuickBooks tends to serve smaller (and some mid-sized) businesses in need of bookkeeping, general accounting, and financial management. QuickBooks has an extensive network of partners and solutions that can connect customers to greater functionality, but it is not a platform.
Alternatively, NetSuite is a platform for mid-sized to larger organizations in need of more. NetSuite offers a full, comprehensive platform where customers can implement solutions like CRM or e-commerce or meet global requirements with multi-currency functionality.
This simply scratches the surface of what businesses will find when evaluating NetSuite vs. QuickBooks.
Functionality is the deciding factor in an ERP selection. Regardless of the solutions you are evaluating, you need to be sure your requirements are met! This is where we see the biggest difference between NetSuite and QuickBooks.
QuickBooks is a beloved product in the accounting community. It offers everything a small business would need to organize its bookkeeping. A company can track vendors, purchases, expenses, as well as create sales orders, create and send invoices, track AR and AP, all while posting everything to the General Ledger. From there, customers can use their data to pull standard aging reports financial statements, and create basic budgets for upcoming periods. You can even run payroll out of QuickBooks and generate payroll tax reports and vendor 1099s.
Alternatively, NetSuite offers all of this and more. NetSuite’s platform and development support from Oracle have allowed the vendor to build out robust enterprise capabilities. The original accounting-based “Suite” has been continually enhanced over the years with additions of native e-commerce tools, supply chain management, and even planning and budgeting. Growing businesses often look to solutions like NetSuite as they expand into adjacent services or new markets, making NetSuite better suited for more complex businesses.
Another major difference between NetSuite and QuickBooks concerns internal controls. QuickBooks has internal controls, but not in the same way as NetSuite. With QuickBooks Control, businesses can close prior pay periods to prevent fraud. Leaders can also lock down the product to limit user views by either screen or bank account. Other features include check fraud prevention and limitations, allowing only select employees to make payroll edits.
NetSuite offers a more traditional ERP approach to internal controls. Basic functionality includes auditing and data management capabilities, the ability to track changes within NetSuite, and a full activity log overview, on top of other important capabilities like user-based roles, which are pre-configured to ensure separation of duties. This is all in addition to the “standard” internal controls every business needs. Within the financial close, customers will find an array of ready-to-use capabilities. For a complete list, visit: https://docs.oracle.com/en/cloud/saas/netsuite/ns-online-help/section_4750146419.html.
Despite the differences in functionality, more does not always mean better. Smaller organizations, typically those under $25 million in revenue, are usually better suited for QuickBooks. Implementing a major solution like NetSuite before you are ready means wasted time, money, and modules. We highly recommend staying on QuickBooks until it can no longer meet your needs.
Businesses looking to scale will likely explore options across the entire market. They need a solution that will grow as they do, the right way.
QuickBooks has a robust network of third-party applications made to integrate with the solution. With over 750 popular business app integrations, most customers can find what they need, from FP&A to revenue reconciliation to business intelligence. However, this can create data siloes or difficulty managing diverse technology stacks. This model can make it hard to scale, especially as your business becomes more complicated.
NetSuite, on the other hand, is a true platform play. By relying on a platform instead of an isolated solution. Customers can choose to purchase modules as needed, including NetSuite Planning & Budgeting, NetSuite Advanced Financials, NetSuite Fixed Assets Management, NetSuite Project Management, NetSuite Warehouse Management, and many more. NetSuite’s comprehensive suite of solutions can be a real game changer for many businesses. NetSuite’s modules are embedded in the core platform, therefore, there are no integrations needed when a company adds a new module as they need more functionality. This is contrasted with buying a third-party tool that must be mapped through an integration connection and, therefore, can break or create duplicate records that need to be cleaned up.
While it is beneficial to have access to native solutions, it can become unnecessarily costly if you are paying for more functionality than your business really needs.
QuickBooks has much more variety when it comes to deployment options, with NetSuite being offered only as a cloud-based SaaS application in a multi-tenant model.
QuickBooks deploys QuickBooks Online and QuickBooks Desktop, with various solutions within those categories. QuickBooks Online is offered in tiers:
Large enterprises with bigger workforces and more complex requirements will rely on QuickBooks Desktop Enterprise, offering the full suite of solutions, from built-in payroll to advanced reporting to integrated inventory management.
QuickBooks also extends to the tiniest of operations, giving “solopreneurs” and contractors a way to maintain the books. Ultimately, there is a lot to discover in QuickBooks’ lineup of solutions.
NetSuite is in the next generation category of ERP, as companies look for cloud solutions to bolster future growth. But QuickBooks hits a broader need for variety among some SMBs.
It is important to note announcements surrounding QuickBooks Desktop have caused a stir. In November 2023, QuickBooks announced “plans to stop selling several versions to new U.S. subscribers” after September 30th, 2024 (firmofthefuture.com). The products no longer being sold as new subscriptions include Desktop Pro Plus, Desktop Premier Plus, Desktop Mac Plus, and Desktop Enhanced Payroll. This change did not impact existing users, it only prevented new users from purchasing the specified versions. QuickBooks Enterprise users can also rest easy knowing this announcement will not change their support, and new customers will still be able to purchase the product.
Then, in 2025, QuickBooks announced the service discontinuation of QuickBooks Desktop 2022. Stating, “If you don’t upgrade your QuickBooks Desktop 2022 by May 31st, 2025, you won’t have access to live technical support if you run into problems or any of the other Intuit services that can be integrated with QuickBooks Desktop” (quickbooks.intuit.com). Affected products include QuickBooks Desktop Pro Plus 2022, QuickBooks Desktop Premier Plus 2022, QuickBooks Enterprise Solutions 22.0, and QuickBooks Enterprise Accountant. If customers would like to stay on the QuickBooks Desktop platform, they can upgrade to QuickBooks Desktop Plus 2024 or Enterprise 24.0. QuickBooks Desktop Enterprise will not be affected by this change.
Ultimately, the most important thing to take away from this section is that QuickBooks is not forcing upgrades to the cloud at this time, but is highly encouraging customers to make the jump to supported products. This is very similar to the path of legacy products across the market.
Cost is a major concern for any business considering its accounting needs. To be frank, the biggest cost hike is going to come when upgrading from basic accounting software to a full-scale ERP.
QuickBooks is much more cost effective and straight-forward when it comes to pricing. Below is a breakdown of pricing at each level of QuickBooks Online and Desktop Enterprise.
NetSuite is much more costly, with customers spending upwards of five figures for NetSuite SuiteFinancials alone. List price is $120/user/month plus the cost for each module, paid annually. There is also the cost of implementation services by a third-party provider, whether it is NetSuite, an Alliance Partner, or a Solution Provider. The most aggressive Financials-only implementation for a small customer may cost as much as $25,000. But many line items go into the total price for the software on the estimate form. Line-item charges may include CRM, Inventory Management, Manufacturing, Services, Payroll, Multi-Company, Financial Planning and Analysis, to name a few. And a major difference to be aware of for pricing of QuickBooks vs. NetSuite is that QuickBooks subscriptions may be month-to-month or annual. NetSuite can also be annual, but the longer your contract is, the more control you have over renewals and price increases. So make sure you understand all the renewal language before signing on the dotted line!
NetSuite is a complex application with a significant learning curve. To combat these concerns, NetSuite developed NetSuite MyLearn, a guided experience to help customers through training. Despite MyLearn, NetSuite is still not the easiest tool for end-users to learn. Many customers have described dissatisfaction with NetSuite in the earlier phases of implementation because they don’t truly know how to use all the bells and whistles.
Comparatively, QuickBooks is an extremely user-friendly solution. It isn’t implemented to the customer’s needs like NetSuite is, and, therefore, accountants and bookkeepers alike enjoy QuickBooks’s user interface and find it easy to learn and use when they move from company to company. This is largely due to the limitations of QuickBooks, through pre-set user permissions and core functionality with few customization options. This is ideal for small businesses that do not have complex needs.
The final differentiator often highlighted by businesses comparing NetSuite and QuickBooks is the international, multi-currency capabilities. Currency conversions and international accounting can be quite difficult, so it takes an advanced solution to manage these requirements. QuickBooks claims to offer multicurrency, but it is very basic in its capabilities.
NetSuite, however, is known for its ability to support businesses internationally. Those international capabilities also expand beyond just accounting. Through its comprehensive platform, companies can conduct business internationally, across all modules, without hiccups. NetSuite also has multi-company consolidation. Each business can exist in the customer’s instance of NetSuite and can “roll up” all the subsidiaries’ financial reports to the parent company without “logging in and logging out” and downloading and merging data into one report, as is necessary for multi-company financial reporting in QuickBooks.
Well, it depends. Each category highlights where NetSuite vs. QuickBooks takes the crown. Small businesses need solutions like QuickBooks to meet their needs without the complexity. Customers also like the variety offered by QuickBooks’s various deployments. They benefit from QuickBooks’s inexpensive price points, ensuring their needs at met at each growth milestone. There is no shame in using QuickBooks!
Once businesses break into the mid-market with a high volume of transactions, international accounting needs, sophisticated financial reporting needs, and incorporating functions from across the business, like sales, supply chain, and manufacturing, then they should consider solutions like NetSuite to meet their needs. Growing midsize businesses need more, and NetSuite is a popular option among our clients. Companies with significant needs around financial automation, multiple lines of business, supply chain management, international operations, etc., should consider NetSuite for functionality that is not available in QuickBooks.
Remember not to settle when it comes to ERP. If you need help navigating the complex world of accounting software, reach out to the experts at ERP Advisors Group. Schedule a free consultation today!