The Hidden Costs of “Connectors” by Job Function
Many accounts payable (AP) automation vendors promise seamless NetSuite connectivity, but what they don’t mention is the hidden costs and headaches lurking beneath the surface. While it might seem like flipping a switch to “connect” your AP tool to NetSuite, the reality is far more complex—and costly.
At SquareWorks Consulting, we’ve built an embedded AP automation solution in NetSuite to eliminate the need for integrations; no middleware, no syncing issues and zero ongoing maintenance costs. In this post, we’ll break down why the integration-less approach is not just better for efficiency, it’s better for your bottom line. To drive the point home, we’ll look at how different roles in your finance and IT teams experience these cost benefits.
The CFO: Total Cost of Ownership (TCO) Matters
For a CFO, the math has to add up. At first glance, an AP solution with an integration might seem affordable, but factor in “activating the connector”, ongoing maintenance and troubleshooting, and the costs balloon quickly.
With an integration-less solution embedded in NetSuite, you benefit from:
- No additional middleware or third-party integration fees.
- No hidden costs related to ongoing API changes, which often require costly development work.
- Predictable pricing with no surprises.
Many competitors like Ramp and Bill.com require customers to upgrade to their higher tier pricing just to access a NetSuite connector. This hidden cost is often discovered late in the buying process, creating frustration and adding unexpected expenses.
The Corporate Controller: No More Reconciliation Nightmares
Controllers live and breathe financial accuracy. One of the biggest pain points with integration-based AP automation is data mismatches between NetSuite and the third-party system. Common (and expensive) reconciliation issues include:
- Payment records not syncing properly, requiring manual adjustments.
- Timing mismatches between invoices being recorded and payments being issued.
- Currency conversion discrepancies leading to reporting errors.
A real-world example? We’ve seen companies using integration-based solutions spend entire days reconciling payment details between NetSuite and their AP platform, often resulting in added delays to the monthly close.
With an integration-less solution, all AP transactions happen within NetSuite in real time. No syncing means no inconsistencies, and no inconsistencies mean no expensive, time-consuming reconciliation work.
The Auditors: Compliance Without the Extra Fees
Auditors love clean, consistent financial records. Integrations, however, introduce risk by creating gaps in data integrity. When auditors find inconsistencies between NetSuite and an external AP system, companies often have to pay for additional audit hours—or worse, deal with compliance violations.
With an embedded solution, auditors gain the following:
- Every invoice, approval and payment are logged in NetSuite, creating a single source of truth.
- No need to pull records from multiple systems during audits.
- Reduced risk of compliance penalties due to missing or incorrect data.
For companies in highly regulated industries, these savings alone can justify switching to an integration-less platform. We hear repeatedly from these industries, biotech being an example, that having these disparate systems often leads to much higher audit and compliance fees.
The CIO: Fewer IT Headaches (and Lower IT Costs)
CIOs and IT leaders know integrations aren’t truly “set and forget.” They require ongoing maintenance, troubleshooting and development resources to keep up with changing APIs, software updates and NetSuite enhancements.
Some hidden IT costs of integrations include:
- The amount of time architects or analysts require to review and get comfortable with the connector as these solutions are implemented.
- Troubleshooting unexpected sync failures that disrupt business operations (which happen all the time).
- Security risks that require additional compliance checks.
For example, we recently spoke with a CIO at a midmarket distribution firm who estimated spending several thousands of dollars per month just to maintain an integration between their AP automation tool and NetSuite. By keeping AP automation inside NetSuite, CIOs avoid these ongoing costs. IT teams no longer need to spend valuable time babysitting integrations, freeing them up for more strategic initiatives.
The AP Clerk: Eliminating Wasted Time (Which Costs Money)
While AP clerks aren’t decision-makers, their efficiency directly impacts costs. Time spent navigating between systems, troubleshooting sync failures and manually reconciling discrepancies is time that could be better spent elsewhere.
An embedded solution means:
- No duplicate data entry.
- No flipping between multiple applications.
- No chasing down missing transactions.
For example, one of our customers who switched from a well-known, integration-based AP solution to SquareWorks reduced their AP processing time by 40%, freeing up valuable hours for higher-priority tasks. Even a small efficiency gain per invoice adds up over hundreds or thousands of invoices processed per month, leading to significant cost savings.
Integration-less: The Smart Financial Choice
At first glance, an AP automation solution with a NetSuite connector may seem like a cost-effective option. But when you factor in the hidden costs of integrations, from maintenance fees to reconciliation headaches to IT labor, the true cost quickly becomes clear.
An integration-less, embedded solution isn’t just about improving efficiency; it’s about making a smarter financial decision.
So, before you choose an AP automation platform, ask yourself: Are you looking for a solution that just “connects” to NetSuite, or do you want one that works within it, seamlessly and cost-effectively?
For more of Bernardo’s insights, you can follow him on LinkedIn here.
Stay tuned for the next post in our series, where we’ll explore how embedded AP automation transforms efficiency and why the future of NetSuite is integration-less.
