How the Right Financial Software Tools Can Ensure A Successful IPO
Ensuring a successful IPO isn’t just about having the right underwriters in place, companies that implement robust financial software to serve as a foundation prior to listing prove to potential investors that they’re ready to accept the scrutiny that comes with going public.
Tight business processes coupled with streamlined financial software implemented from day one will ensure you’re ready to scale. The right ERP system will enforce leading industry practices wherever possible, while unifying critical business functions in the cloud.
NetSuite ERP has proven repeatedly that it is a preferred financial software system for investors and regulators around the world and significantly improves your odds of a successful IPO, so here are some ways NetSuite can help your company in the start-up phase.
1. Assures Robust, Auditable Financial Order
The importance of having robust financial software in place prior to arranging an IPO, goes without saying. Spreadsheets won’t make the cut with investors.
An ERP like NetSuite implements the tools and capabilities needed to navigate common accounting challenges that IPO candidates commonly need to overcome, while meeting financial regulatory requirements.
At the other end of doing business, once your investors are on board, trying to expand your operations on a system that can’t cope is next to impossible.
This ERP system gives key stakeholders appropriate and real-time access to critical business data, that they can have confidence in, also provides the necessary controls to manage processes while accommodating future changes, growth or acquisitions, which is what makes it an attractive underlying system for companies trying to attract serious investors.
2. Public Companies Must Deliver Audited Financial Reports Regularly
An ERP system like NetSuite does away with manual reconciliations and data entry, enabling effective and efficient scalability of your organisation. As your operations grow in transaction volumes, complexity, location, and currencies traded in, NetSuite’s financial software ensures transparent reporting processes supported by full audit trails.
ERP systems also provides the robust reporting and analytics tools required, as well as automated reporting capability around key performance indicators (KPIs). Role-based dashboards for executives and employees provide the ability to drill into information by department, subsidiary, or location.
3. Establishes Good Corporate Governance From Day One To Support A Successful IPO
An ERP like NetSuite establishes a corporate governance framework that keeps board members and executive management informed and accountable to their roles and responsibilities from the outset.
When your company is preparing to go public, regulators and investors require governance that is coordinated, transparent and consistent. For public companies, governance forms part of the auditability and accountability framework.
ERP systems like NetSuite comes with Governance, Risk and Compliance (GRC) capabilities built in, assuring confidence in reporting and auditing from start up to IPO to fully fledged public company. Meanwhile automated controls and role-based access secure the systems, processes, and information within the system.
4. Establish Investor Relations and Corporate Communications
Once you’ve gone public, your finances and aspects of your operations are scrutinised by shareholders, professional analysts and potential investors. NetSuite helps you establish a well-oiled investor relations (IR) operation with ongoing effective communication for shareholders and the broader the financial community, integrating information from your finance, marketing and legal teams.
The instant access to financial metrics and reports that NetSuite gives you ensures your IR team have the information required to deliver accurate, current, incisive information ready for public-market scrutiny.
5. Risk Management Capability and Strategy for A Successful IPO
Going public means investors and regulators will be scrutinising your operations and financial reporting. It is imperative that you’re getting the right information in a timely manner and are able to see and respond to potential problems before they emerge.
A public company needs to be able to respond when an audit committee or the board of directors asks about management expenses, approving major costs, cash access or forecasting.
ERP system like NetSuite will give you real-time KPIs and automated rule-based alerts identify risks early, ensuring educated decision-making by leadership, preserving your system’s integrity.
6. Supporting Your Essential People
The demands of the IPO process will take away the CFO from regular and routine operations for around three to four months. Organisations will need to substitute a strong controller to fulfil these day-to-day routine operations and NetSuite’s tight security and regulatory control means that person will be able to support the business fast.
7. Supporting your Company’s Story
Your organisations leadership, investor relations and communications team must be able to respond quickly to external scrutiny, which means arming the team with the financial performance and KPI information that a robust ERP system provides. They need to tell their IPO narrative in a way that assures confidence.
ERP systems enables companies to implement these seven essential IPO factors right from the outset, which is attractive to investors and underwriters. This helps when it comes to successfully navigating the IPO process.
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