The best option in this situation would be to acquire a cloud ERP focused on small to mid-sized businesses that deliver a modern and flexible model to operate globally, yet also grants larger companies the plasticity of the smaller counterparts. An ERP with all these characteristics is difficult to find, given that most still require some form of on-premise presence. Also, most global ERPs currently on the market require the company to find another localization solution anyway, because the original product only has specifications for one country. These additions require updating, and most stressfully, a new contracted system that means you have to consolidate yourself.
NetSuite comes through as the top ERP system for it solves the problems previously mentioned as well as provides additional conveniences. First, since its foundation in the 1990s, NetSuite focused on providing a company with global visibility within a single instance. Second, Oracle, the parent company, allowed NetSuite to distend and manage offices in over 30 countries worldwide as well as partner with reliable localization solutions, such as LatamReady, to manage specific localization requirements.
In the globe’s largest market countries–Brazil, Mexico, Germany, France, India, China, and Japan–there is even a “Local to the Core” approach allowing your company to work through the local product, with regional expertise and guidance. This greatly benefits any company that is headquartered outside of North America.
For companies headquartered in countries apart from those mentioned, or that have one or more subsidiaries in other countries, NetSuite offers localizations through partners that are specialized in that region and/or market. LatamReady is the only NetSuite partner offering a solution for the entire Latin American region. This solution allows companies to calculate local taxes, comply with local tax requirements, understand business processes, and produce correctly formatted documents for each country through a single platform.
Additionally, NetSuite offers a solution for smaller markets called “OneWorld Ready” that allows companies to support subsidiaries in foreign countries. Local adjustments to GAAP can be calculated manually or through LatamReady, in the Latin American environment, and adjusted as needed.
Now, to be fair Microsoft Dynamics 365 also prides itself as a cloud ERP parented by another global enterprise. It offers a foundation for a company to start using an ERP, however, is incipient and not yet dependable for expansion, multiple subsidiary operations, and local compliance. Microsoft Dynamics also must rely on other, bigger products such as Microsoft Azure and Microsoft Office 365 for its functionality. Other nascent products exist like SPA´s S/4HANA or Acumatica, both with situations that require more than one system to operate abroad.
On the positive side, growing mid-sized companies have the benefit of being able to integrate an ERP that best suits their business needs. When choosing an ERP, the following questions should always be asked:
- Is the ERP accredited by multiple bodies including the American Institute of CPAs (AICPA), the Institute of Chartered Accountants in England and Wales (ICAEW), and more?
- Is the ERP certified in Germany under the Institute of Public Auditors (IDW) Auditing STandards (AuS 880) and Generally Accepted German Accounting Principles (GoBS)? Are they Japanese J-GAAP compliant? And are they compliant in other countries?
- Does the ERP provide support for indirect tax engine with respect to the automatic calculation of Canadian HST, Mexican IVA, German Mwst, Philippines VAT, Australian GST, China Golden Tax VAT, and more?
- Does the ERP provide support for electronic payment processing of the payments or direct debits into each local bank’s predefined file format? Local payroll support would also go a long way toward easing the burden of running a global business.
Overall, emphasis should be placed on the fact that NetSuite encompasses all operations in a single instance. Pre-configurations of tax and company relationships allow NetSuite the facility of a global platform ready to deal with and solve any upcoming complications.