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Automating Loan Accounting in NetSuite with NetLoan by Netgain

Henry Sack • Mar 12, 2024

Managing loan accounting in NetSuite can introduce significant complexities and time-consuming manual calculations for your accounting team. For most accountants, spreadsheets, disconnected systems, and the challenges of ensuring compliance make accurate and timely reporting almost impossible to produce. NetLoan by Netgain simplifies loan accounting, automating tasks and providing vital insights directly within your NetSuite environment.

Key Challenges of Loan Accounting in NetSuite


Complex Calculations


Calculating accurate amortisation schedules, factoring in varying interest rates, and correctly determining principal/interest splits requires in-depth accounting knowledge. NetSuite's standard functionality isn't designed for these complex calculations, forcing businesses to either manually manage them (which is time-consuming and risky) or attempt to find workarounds, which are often imperfect.


Manual Processes


When loan accounting relies heavily on spreadsheets, the risk of errors drastically increases.  Misplaced formulas, incorrect data entry, and version control issues can easily undermine the accuracy of your financial statements. These errors lead to time spent on rework, potentially delayed financial reporting, and can raise red flags during audits.

Two Columns Layout

Key Challenges of Loan Accounting in NetSuite

Complex Calculations

Calculating accurate amortization schedules, factoring in varying interest rates, and correctly determining principal/interest splits requires in-depth accounting knowledge. NetSuite's standard functionality isn't designed for these complex calculations, forcing businesses to either manually manage them (which is time-consuming and risky) or attempt to find workarounds, which are often imperfect.

Manual Processes

When loan accounting relies heavily on spreadsheets, the risk of errors drastically increases. Misplaced formulas, incorrect data entry, and version control issues can easily undermine the accuracy of your financial statements. These errors lead to time spent on rework, potentially delayed financial reporting, and can raise red flags during audits.

Compliance Risks


Adhering to the requirements of accounting standards for loans can be challenging to manage within NetSuite. This is especially true when dealing with a mix of loan receivables and payables, as each might require different reporting approaches. Manually ensuring compliance without a purpose-built tool adds complexity and introduces the potential for miscalculations and non-compliance.

Netgain

Limited Visibility



Without a centralised loan management system, getting a real-time, accurate view of your loan portfolio is unachievable. Tracking payment schedules, understanding outstanding balances, forecasting interest accruals, and getting a complete picture of your upcoming liabilities becomes a tedious exercise in pulling data from multiple sources. This lack of visibility hinders timely decision-making and effective cash flow management.

How NetLoan Automates Loan Accounting


NetLoan addresses the core challenges of NetSuite loan accounting by providing essential automation and insights within your NetSuite environment:


Automated Amortisation & Calculations



NetLoan eliminates guesswork and manual labour in complex loan calculations. It automatically generates accurate amortisation schedules, handles interest accruals, and manages principal/interest splits. This saves your accounting team hours of work, eliminates calculation errors, and ensures the accuracy of your financial statements.


Integration with Billing Systems


NetLoan streamlines cash flow management by seamlessly integrating with your billing systems.  This integration ensures that payments are automatically applied to the correct loans, principal and interest are properly reflected, and your cash flow reporting is always up-to-date.

Two Columns Layout

How NetLoan Automates Loan Accounting

Automated Amortisation & Calculations

NetLoan addresses the core challenges of NetSuite loan accounting by providing essential automation and insights within your NetSuite environment. It eliminates guesswork and manual labor in complex loan calculations by automatically generating accurate amortization schedules, handling interest accruals, and managing principal/interest splits. This saves your accounting team hours of work, eliminates calculation errors, and ensures the accuracy of your financial statements.

Integration with Billing Systems

NetLoan streamlines cash flow management by seamlessly integrating with your billing systems. This integration ensures that payments are automatically applied to the correct loans, principal and interest are properly reflected, and your cash flow reporting is always up-to-date.

Real-Time Reporting


NetLoan provides real-time dashboards and customisable reports on your loan portfolio. You can easily track loan balances, view payment schedules, monitor interest accruals, and forecast upcoming liabilities. These insights empower data-driven decision-making and proactive cash flow management.



Handles Loan Receivables and Payables


Whether you're managing loans extended to customers, traditional business loans, or both, NetLoan offers a complete solution. This centralised view of both sides of your loan activity simplifies reporting, improves accuracy, and gives you a comprehensive understanding of your financial positions.


Simplify Loan Accounting with NetLoan


If you're looking to streamline your loan accounting, improve efficiency, and ensure compliance within your NetSuite environment, NetLoan is the ideal solution. Contact the Loan Accounting experts at TeamBlueSky to see how NetLoan can help your AP and AR team to automate loan management within the NetSuite platform with NetLoan.


Henry Sack Team Blue Sky

Henry Sack

General Manager

Team Blue Sky Logo

With over 12 years of experience as a NetSuite implementation consultant, Henry Sack leads TeamBlueSky’s team of NetSuite and accounting experts in his role of General Manager.


TeamBlueSky is a leading Australian NetSuite Alliance Partner whose mission is to provide critical NetSuite BPO and Payroll services to NetSuite clients who are wanting to simplify their back office processes and partner with a leading NetSuite administration expert. 


TeamBlueSky have also partnered with global Suite Developer Network partners to offer local solutioning, implementation and support services for global NetSuite SuiteApps. 


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