Today’s update will be on the subject of unexpected features that can be useful for IPOs. Since we are a system vendor, we hope you will take the description of IPO itself as trivia.
The listing examination is based on whether or not the company is “capable of withstanding the listing process. In a word, it comes down to this.
When this is further broken down, we understand that whether or not a company satisfies the following points is the subject of the examination.
(1) Sufficiency of internal control, legal compliance, and compliance systems as a listed company
(2) Shareholder and investor protection systems
(2) Adequacy of financial reporting (2) Accuracy of earnings forecasting, etc. There are accounting areas in (2) where NetSuite can make a significant contribution.
The listing examination is conducted by securities companies and stock exchanges, but in reality, the financial reporting aspect is judged based on whether or not the company receives an appropriate opinion from the audit firm, and it is (2) of (1) and (2) that securities companies and others directly focus on.
The question is how the accuracy of (2) (2) is examined. Since the earnings forecast is only a “forecast,” the examination may include a comparison with past results (if there is a discrepancy between the forecast and actual results, whether the discrepancy could have been foreseen at the time the forecast was announced), or a comparison with the forecasted figures. ) and whether there is a basis for the forecast figures (especially for sales).
NetSuite is naturally equipped with reports that compare budgeted figures with previous years, but NetSuite’s lead and potential customer management and negotiation management functions also make a significant contribution in terms of the basis for the budgeted figures. This is because it is possible to manage projects from the stage of not yet receiving orders or making sales, and record data on how much the project contributed to orders and sales, which can then be used as the basis for forecasting.
While CRM/SFA functions can be handled in a separate system, having them in NetSuite has the advantage of smoothly registering leads and potential customers to the customer master.
Since ERP supports upstream to downstream processes, we believe that the ability to consolidate information for screening under a single ERP will be of great value.