NetSuite’s first update in 2025, NetSuite 2025.1, has introduced several key updates in its accounting, taxation, and compliance capabilities. These enhancements are designed to improve system functionality, streamline processes, and verify regulatory compliance. 

Businesses today face increasing complexity in managing their financial operations, verifying compliance with ever-evolving regulations, and maintaining accurate financial records. In this newest update, NetSuite offers improved capabilities to address previous versions’ challenges that CFOs are particularly concerned with, including:

• Inconsistent revenue recognition: Previous methods allowed merging revenue elements retrospectively, leading to data inconsistencies and inaccurate revenue recognition.
• Complex asset management: Managing fixed assets and mid-life leases was challenging due to limited support for complex scenarios.
• Tax management difficulties: Less descriptive tax codes and determination settings made tax management difficult.
• Localization and compliance: Generating tax reports and complying with local e-invoicing requirements in various regions was complex and time-consuming.
• Transaction processing errors: Auto-created rule behavior led to unintended transactions, and limited CSV import capabilities restricted efficient data handling.

Accounting changes

Merge revenue arrangements

• Before: Users could merge revenue elements after the fact, which sometimes caused data inconsistencies and inaccurate revenue recognition.
• Now: The new rule stops users from retroactively merging revenue elements, allowing for more consistent and reliable revenue arrangements.
• Benefit: This change should help businesses keep their financial records accurate, reducing the risk of errors during audits and improving overall financial transparency.

Fixed assets management enhancements

• Before: Managing fixed assets and mid-life leases was difficult, with limited support for complex asset management scenarios.
• Now: The enhancements in fixed assets management streamline the setup process and add support for mid-life leases.
• Benefit: Businesses can now manage their fixed assets more efficiently, optimizing asset utilization and supporting compliance with accounting standards.

Taxation changes

SuiteTax enhancements

• Before: Tax codes and determination settings were less descriptive, making tax management more challenging.
• Now: The SuiteTax module now includes descriptive names for tax codes and improved tax determination settings.
• Benefit: These enhancements simplify tax management, reduce manual calculations, and allow for accurate tax compliance. 

Localization updates

• Before: Generating tax reports and complying with local e-invoicing requirements in certain regions was complex. 
• Now: New tax reports for Brazil, Denmark, and Singapore, along with enhancements to PEPPOL e-Invoicing, have been introduced.
• Benefit: Multinational corporations can now generate accurate tax reports and comply with local regulations more easily, reducing the risk of penalties and improving financial transparency.

Philippines VAT compliance updates

• Before: Managing zero-rated and VAT-exempt sales in the Philippines required more manual intervention.
• Now: Adjustments for zero-rated and VAT-exempt sales have been made to streamline compliance.
• Benefit: Businesses operating in the Philippines can now manage VAT compliance more efficiently, reducing the risk of errors and allowing for adherence to local tax laws.

Compliance changes

Banking and transaction processing

• Before: Auto-created rule behavior could lead to unintended transactions, and CSV import capabilities were limited.
• Now: Users must manually check the rule box to create transactions, and new CSV import capabilities expand support for additional record types.
• Benefit: These changes help minimize errors in transaction processing and streamline data imports, improving overall financial accuracy and efficiency.

In conclusion: Support for greater efficiency

The NetSuite 2025.1 release brings significant improvements to the platform’s accounting, taxation, and compliance functions, making it easier for businesses to manage their financial operations and adhere to regulatory requirements. With these updates, companies can achieve greater efficiency in their processes, accuracy in their data, and precision in their compliance – ultimately improving their overall financial management.

Ready to elevate your financial operations? CohnReznick’s team of NetSuite professionals(Opens a new window) is here to help you navigate these updates and answer any questions you may have. Reach out to us today to learn more about how we can support your journey.