Is your Shopify-powered business experiencing growing pains?
A comparison of Xero & NetSuite with Shopify.
As eCommerce businesses grow, so do their financial and accounting needs. Increases in inventory, transactions and customers can quickly overwhelm basic bookkeeping solutions, leading to errors, delays and missed opportunities.
At this juncture, it's crucial to invest in scalable cloud business suites that integrate with Shopify.
Enter NetSuite and Xero. Both are software solutions geared towards managing financial and accounting processes, and both connect with Shopify. But the differences far outweigh the similarities.
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Infographic: Shopify-NetSuite versus Shopify-Xero
If you're planning to upgrade your business and eCommerce systems, it's essential to know which integration is better for your needs: the Shopify-Xero or Shopify-NetSuite integration. Take a closer look at the features and capabilities of both platforms with Shopify to determine which one is the best fit for your business.
When is Shopify-with-Xero versus Shopify-with-NetSuite best?
Choosing the right eCommerce tech stack is a critical decision that can impact your ability to manage inventory, track transactions, and efficiently handle customer orders. While both Xero and NetSuite offer unique advantages when integrated with Shopify, the best fit will depend on your circumstances.
SCENARIO 1
If you are an early-stage or single entity eCommerce business...
Shopify and Xero will likely provide sufficient capabilities and business insight.
For early-stage eCommerce businesses, an accounting solution like Xero helps you nail down the basics of your finances, with straightforward financial, reporting and billing features. The Xero-Shopify integration also imports basic Shopify sales information into Xero on a daily basis.
But as your business expands, the complexity in inventory, processes and data will grow. A Xero and Shopify integration relies on multiple APIs that must be updated independently and doesn't support advanced customisations or third-party integrations like automatic shipping labels and tracking information for customers.
SCENARIO 2
If your business model and entity complexity are increasing...
You need to invest in a platform that supports your success.
Accounting software such as Xero is geared towards single-entity businesses. As you add more stores, outlets or other entities, each will require a separate instance of Xero. This not only creates tech complexity, but your Xero-Shopify integration will also get messy. So if you are starting to add new entities or require multi-currency or multi-language support, or if you find yourself plugging gaps with disconnected third-party tools and workarounds, then it's time to weigh up the advantages of upgrading your business system. NetSuite and Shopify will provide an integrated solution able to handle all this complexity in a single, cohesive instance.
SCENARIO 3
If you have plans to grow your eCommerce business...
You will require a more sophisticated business suite.
If you're looking to grow your business through workforce increases, entering new markets, or expanding your product offerings, Xero and Shopify may not be the ideal choice. For example, a Xero-Shopify integration does not sync inventory and the API has rate and call limits that don’t mesh well with high sales volumes.
A NetSuite-Shopify solution does not possess these limitations, instead it will provide the robust business capabilities needed to easily manage uplifts in inventory, transactions and customers as you scale your processes and operations.
The signs that indicate it’s time for a Shopify-NetSuite solution
Every eCommerce business is different, and you don’t want to upgrade or replace your system unless there’s a compelling business case for doing so.
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Limited eCommerce capabilities
A NetSuite-Shopify integration provides complete and real-time inventory visibility across both platforms, enabling you to streamline online operations and efficiently manage orders.
Inflexible processes and workflows
Accounting systems for smaller businesses offer limited customisations. NetSuite unlocks enterprise-level capabilities so you can tailor processes and workflows around your business, not the other way.
Poor integrations
Point-to-point integrations tend to be rigid and prone to failure. NetSuite’s API seamlessly connects all your business tools and orchestrates workflows between them for a more robust and reliable integration solution.
Minimal supply chain control
With real-time Shopify syncing and visibility of inventory levels, order status and third-party logistics, NetSuite supports more efficient eCommerce operations than smaller competitors.
Limited access to real-time data
The NetSuite-Shopify integration provides a real-time view of sales trends, supply chain metrics and other critical business information, allowing you to identify cost-saving opportunities and make more accurate forecasts.
Handling increases in sales
By always reflecting current inventory information, NetSuite and Shopify will provide you with accurate product availability and reduce the risk of lost sales.
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.png?width=210&name=Untitled%20design%20(24).png "Elizabeth Machines")
Elizabeth Machines switched from Xero to NetSuite
“We now have full visibility of our inventory lifecycle. At any given time, we can view our stock levels, and know how stock is committed across our branches and how inventory has been purchased. And that's proven very, very impactful on our overall sales.”
- Joel Skurrie, General Manager Business Development, Elizabeth Machines