NetSuite can help you take the frustration out of banking. With the platform’s integration capabilities, you can easily connect your accounts directly to your accounting software. And that means streamlined financial processes and accurate financial management, no matter the number of accounts.
In this blog, we’ll walk you through how to connect NetSuite to your bank accounts, for enhanced efficiency, accuracy, and financial control.
Understanding the Basics
NetSuite is an all-in-one Enterprise Resource Planning (ERP) system for business management. It’s known for its adaptability, and offers industry-specific versions and modules to cater to the needs of different sectors. As an added bonus, the software is highly customizable, to ensure you have everything you need at your fingertips. And that includes how to connect NetSuite to your bank accounts.
Why connect your bank accounts?
When you connect NetSuite to your bank accounts, you can further streamline the numerous benefits already offered by the accounting software. It means your business will always have access to real-time financial monitoring and tracking. This helps with strategic decision-making, stress-free reporting, and simplified accounting and reporting processes.
The integration also means that your team can save time and reduce any errors that would creep up with manual transactions. Overall, this makes for increased efficiency and simplified reconciliation and period-end closure.
Preparing for the Connection
The basic process to connect NetSuite to your bank accounts is generally the same, no matter where in the US your account is held. However, specific steps may vary according to your bank’s security protocols and transaction processing rules. As such, before beginning, we recommend that you contact your bank to ensure compatibility of your accounts and cards for the setup.
You’ll need all the relevant information, including account details (account numbers, routing numbers), and login credentials or API keys (if required).
Note that you’ll also need to have Administrator access or a custom role with the required permissions for bank feed setup. This can be viewed or edited in ‘Roles and Permissions’ for Bank Feeds. You’ll also need to allow popups in your browser for the setup.
Finally, remember that while configuring the connection, the ‘Format Profile’ page session generally expires after 15 minutes. This means that you may need to refresh the page while editing to ensure that all changes are saved correctly.
Steps to Connect NetSuite to Your Bank Accounts
The most important step in linking your bank accounts is to install the NetSuite Bank Feeds Suite App, which supports up to 20 unique accounts. From here, the connection process is as follows:
- In NetSuite, go to Setup > Accounting > Financial Statements > Financial Institution > List.
- Then choose your bank from the list, and click ‘View’.
- In the ‘Format Profile: Configuration’ subtab, click ‘Edit’ on the option to ‘Connect to U.S. and Canada Accounts’.
- A ‘Disclaimer of Warranties and Terms of Use of Oracle’ notice will now pop up, along with an ‘Authorized Information Service Provider (AISP) User Agreement of NetSuite’. You will need to read and acknowledge these. To do so, select ‘Accept and Agree’.
Now you’re ready to get started
- Click on the option to ‘Connect New Institution’ to open the connection configuration setup popup window.
- In this window, you can choose your bank, either from the list provided, or via the search box. Depending on your chosen bank, you may need to read and acknowledge a popup about data sharing.
- Next, enter the login credentials for your bank. Some banks require multi-factor authentication (MFA), which should also be done at this stage.
- After this step, your bank account will either be automatically linked to NetSuite, or you’ll be redirected to your bank website to authenticate the connection. Then you’ll be directed back to the set up page in Bank Feeds.
- Review all the information you’ve entered to check it is correct before clicking on ‘Save and Finish’.
- To add more accounts, simply click on ‘Save and Connect More Accounts’, and begin the process again.
- Then go to the ‘Account Linking’ subtab, and select the bank or credit card you want to link to various accounts in your ‘Linked GL Account’ dropdown list.
- Finally, click on ‘Save’, and your account is officially linked!
Once you have connected your bank accounts to NetSuite, it’s easier than ever to manage transactions.
Managing Bank Transactions in NetSuite
Once your bank accounts are linked, transactions can be pulled into NetSuite in one of two ways. The software lets you set up automatic imports if you have an Administrator role, by saving a formatted profile set up for automatic import. All you need is the Financial Institution Connectivity plug-in. With this in place, NetSuite sets up a daily import schedule.
It’s also possible to do manual imports. For example, you can download a bank or credit card statement and import this to NetSuite for reconciliation. Once the statement is processed, it is automatically removed from NetSuite (through an algorithm) for increased security, and to prevent having too much data on the platform, which can slow system performance.
Categorizing and reconciling transactions
When you connect NetSuite to your bank accounts, you can automate transaction categorization for even greater efficiency. The software allows you to set up transaction rules to automatically categorize bank transactions. This can be done based on predefined criteria like transaction amounts, descriptions, or who is paying.
You can also easily match transactions with the system’s Intelligent Transaction Matching feature, which matches imported bank transactions to their corresponding entries in the general ledger.
In addition, NetSuite’s Account Reconciliation feature can automate reconciliation, as it integrates directly with your general ledger. This lets you establish rules to match transactions and highlights any issues. After matching, your team can easily submit the transactions to clear them in the system.
Security Considerations
As with any aspect of banking and finance, a crucial consideration when you connect NetSuite to your bank accounts is security.
Below are a few tips to keep in mind:
- Make sure that all data transmitted between your bank and NetSuite is encrypted. This protects your information from being intercepted during transmission.
- Set up strict access controls in NetSuite, so that only authorized staff can access financial information.
- Consider implementing two-factor authentication for accessing NetSuite and your bank accounts, for an extra layer of security.
- Regularly update passwords. You can keep track of these securely with a password manager.
- Monitor account activity within NetSuite and your bank accounts, or conduct periodic internal audits, for suspicious activity.
Overcoming Common Challenges
While it’s relatively straightforward to connect NetSuite to your bank accounts, you may still run into a few challenges. For example, not all banks can integrate directly with NetSuite. However, it is still possible to link these banks through third-party connectors or Suite Apps designed for this reason.
Or you may experience importing errors or challenges with data formats. This is usually a result of your bank and NetSuite using different data formats. An easy way to avoid this is to reformat your bank data before importing it to NetSuite.
And then there’s the risk of duplicate transactions. These can occur if your data is imported a few times or there are inconsistencies in formats. To avoid this, simply use NetSuite’s transaction matching features, and set up rules for how to handle duplicate transactions in the future.
Another potential setback is delays during reconciliation, because of transaction update timing. Automated reconciliation can go a long way in preventing this, but when in doubt, you can sync your data as often as you feel necessary.
When in doubt, call a pro
If you do face any complications during the integration phase, you can also reach out to a professional. At Fusion CPA, our NetSuite-certified experts have decades of combined experience in the software, to ensure you can navigate it with ease.
For assistance managing your accounting software, schedule a Discovery Call with one of our CPAs.
The information presented in this blog article is provided for informational purposes only. The information does not constitute legal, accounting, tax advice, or other professional services. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information contained herein. Use the information at your own risk. We disclaim all liability for any actions taken or not taken based on the contents of this blog. The use or interpretation of this information is solely at your discretion. For full guidance, consult with qualified professionals in the relevant fields.