ActivPayroll: Embracing Transformation with NetSuite
ActivPayroll is a global payroll and tax services company that has carved a niche for itself by offering bespoke payroll solutions to businesses worldwide. With operations spanning 8 countries, the complexity of managing multi-currency transactions and adhering to varied tax regulations is a daily challenge for the company. The company has undergone a rapid growth phase, more than doubling their turnover in the last 4 years. The reliance of their clientele on flawless payroll processing means there is absolutely no room for error, as any mistake could have significant repercussions.
Navigating Complexity and Change
The catalyst for change emerged when ActivPayroll was faced with the discontinuation of their existing solution, Microsoft NaVision. This situation presented an opportunity not just to seek a direct upgrade to Microsoft Dynamics NAV but to thoroughly evaluate their options in order to address several underlying issues that were impeding their efficiency and profitability. Among these were the challenges of integrating their primary CRM, Salesforce, leading to numerous manual processes that not only slowed operations but also introduced errors.
The company’s “Order to Cash” process, in particular, was identified by the CFO as a source of at least a 1% loss in earnings due to its complexity and manual nature of billing. This, coupled with a lack of comprehensive reporting, left many profit and efficiency metrics in the dark.
The NetSuite Solution
In their quest for a more fitting solution, ActivPayroll considered several providers, including Workday, Sage Intacct and the seemingly simpler path of upgrading their existing Microsoft solution. However, the NetSuite Cloud-based ERP system stood out due to its ability to align with ActivPayroll’s short, medium and long-term requirements. It was recognised that the NetSuite platform was particularly strong in its financial applications allowing the business to be more agile and pinpoint weaknesses that must be addressed.
The NetSuite platform not only aligned with ActivPayroll’s core business values but also ensured that the proposed solution would seamlessly integrate with Salesforce and automate previously manual processes, thereby directly addressing the company’s primary challenges.
The addition of another platform, Workato, added another level to the solution. Workato are world-renown experts in automation and provided a crucial link between ActivPayroll’s Salesforce and NetSuite platforms.
ActivPayroll appreciated the modular approach of the NetSuite product which allowed the software to be completely tailored to the way in which the business structures its international operations, manages the profitability of its customer contracts, and services a wide variety of markets.
Some of the core modules that ActivPayroll selected, included:
SuiteSuccess Services
Premium UK
A tailored solution for service organisations, providing a comprehensive set of cloud-based tools to streamline operations across financial management, customer service, project management and more. It employs a phased implementation strategy to enhance usability and efficiency, ensuring quick returns and high user adoption.
SuiteProjects
This module enhances project efficiency by integrating management tools into a single platform. It streamlines resource allocation, expedites financial transactions and offers real-time analytics, thereby improving project delivery and financial compliance for clients.
Fixed Asset Management
Cloud Service
This enhancement streamlines the entire lifecycle management of fixed assets, from acquisition through depreciation, revaluation and eventual retirement. It automates key financial processes such as fixed-asset depreciation and lease accounting, ensuring accurate and timely financial reporting. This service significantly reduces the need for manual spreadsheet management and data entry, enhancing efficiency and accuracy in asset record-keeping.
Resource Allocation
Cloud Service
This addition streamlines project management by allowing managers to assign resources directly to tasks or projects, enhancing operational efficiency. It features real-time visibility into resource availability and skills, which improves project staffing decisions and optimises resource utilisation. This service is especially valuable for increasing productivity and project profitability.
Job Costing Cloud Service: This module enhances project management by accurately tracking and managing project-related costs, including labour, materials and overhead. It integrates these costs into the general ledger, supports budget creation and improves profitability analysis through detailed reporting and cost-control tools.
SuiteApprovals
This add-on automates and manages approval processes for various business documents like journal entries, expense reports and purchase orders. It offers customisable workflows that ensure only authorised personnel can approve, reject or edit submissions. This tool enhances control over financial transactions and operational efficiency by streamlining approvals across the organisation.
Advanced Electronic Bank Payments: This module streamlines the management of electronic payments, supporting a variety of global banking formats and enabling efficient, automated payment processes. This module enhances cash flow by facilitating timely vendor payments and collections and integrates closely with other NetSuite functionalities for comprehensive financial management.
SuiteBilling
This component not only simplifies the management of subscriptions and billing cycles but also provides tools for detailed financial tracking and customer relationship management, all integrated into a single platform.
Revenue Management Cloud Service: This module automates and streamlines revenue recognition and reporting, complying with standards like GAAP FRS102 or newer standards such as ASC 842 or IFRS16. It features automated scheduling, complex revenue handling and seamless integration with financial systems, ensuring efficient, accurate and compliant financial processes. This tool significantly enhances financial visibility and accelerates the closing process.
The Transformational Impact
The implementation, expertly planned, managed and delivered by MacroFin, of a customised NetSuite solution marked a significant turning point for ActivPayroll. The transition from manual to automated processes has not only enhanced operational efficiency and accuracy but has also provided a level of scalability previously unattainable. With automated workflows and integrated systems, ActivPayroll has experienced a substantial reduction in errors, freeing up valuable time and resources that can now be directed towards strategic growth initiatives.
The change had a dramatic impact on how ActivPayroll handled client billing. Historically, this was a long and challenging process especially when dealing with clients whose payroll stretched across multiple countries. The customised SuiteBilling module allowed AcvtivPayroll to accurately invoice clients based on their number of employees. The module flowed seamlessly from SalesForce through to the Netsuite platform, linking their custom CPQ set up, where they entered customer specific pricing tables.
Previously, this information had been stored in Excel spreadsheets and the shift allowed an enhanced level of automation and accuracy. This was a vital change as the entire process accounted for roughly 70% of the businesses revenue and was traditionally a manual process.
One of the most transformative outcomes of this collaboration has been the dramatic improvement in reporting capabilities. ActivPayroll now benefits from real-time insights and analytics, enabling informed decision-making and future planning with a newfound level of confidence.
The comprehensive reporting features have shed light on efficiency and profit metrics, unveiling areas for improvement and opportunities for expansion.
The roadmap for growth supported by the robust and scalable NetSuite platform, positions ActivPayroll not just to meet its current needs but also to anticipate and adapt to future challenges. The company now operates with a fully integrated system that supports its finance-first approach, ensuring that as it grows, its foundational processes remain strong and agile.
By embracing change and focusing on automation, integration and reporting, ActivPayroll has not only solved its immediate challenges but has also equipped itself for sustainable growth and success in the dynamic global payroll landscape.
The partnership between ActivPayroll and MacroFin, underpinned by the powerful capabilities of NetSuite, has transformed the way ActivPayroll operates. By embracing change and focusing on automation, integration and reporting, ActivPayroll has not only solved its immediate challenges but has also equipped itself for sustainable growth and success in the dynamic global payroll landscape.