What your business can learn from Canstar's transformation journey

Any business running on outgrown or siloed systems understands the frustrations of inefficiencies and limitations. 

Canstar, Australia and New Zealand's largest financial research and expert ratings agency, found themselves entangled in such a web of small accounting systems and spreadsheets —a gradual buildup as the company expanded and added solutions to meet immediate needs.

A tangle of overgrown systems
With over 150 employees across Australia and New Zealand, Canstar was juggling multiple unreliable systems, including a legacy on-premises ERP and Xero accounting software for different subsidiaries. As Chris Mitchell, Chief Financial Officer at Canstar, explained: "Xero is fantastic if you're a single-company group or even for two companies. But as soon as you add more companies, it gets hard and manual. For us, being able to run a consolidated set of accounts with the push of a button was really critical."

Over time, they had clearly outgrown their solution stack. Routine tasks like generating consolidated financial reports or closing the books at month-end had become mammoth challenges. In fact, Mitchell described their old setup vividly: "We'd switch it on in the morning and have to press the 'choke button,' stand on our heads, and tie one hand behind our back—then it might work if we were lucky. It was just not reliable."

The limitations were evident:

• Inefficient financial consolidation: Xero made consolidating accounts across multiple entities manual and time-consuming.
• Lack of real-time visibility: Slow, unstable systems drew our routine tasks like reporting and monthly close.
• Complex revenue recognition: Outdated tech made managing revenue recognition processes slow and complex.
• IT burdened with maintenance: Excessive time spent patching insecure systems diverted IT from strategic initiatives.

Recognising the need for a modern, integrated solution, Canstar embarked on a journey to overhaul their business systems. Their goal was to invest in an extensible, cloud-based ERP solution that could integrate critical third-party systems, automate processes, enhance operational efficiencies, and provide real-time financial reporting capabilities.

Partnering with Annexa and embracing NetSuite 
During their search for a suitable solution, NetSuite emerged as a consistent top contender. Annexa became their preferred implementation partner, thanks to their expertise in transforming technology for digital leaders like realestate.com.au and Splitit.

Or, as Mitchell put it, "During the early stages of partner and vendor selection, Annexa became really interesting, really quickly for us because of their work with many of our digital peers.".

Achieving real-time financial clarity
Canstar adopted NetSuite Financials to centralise multi-company finance operations and improve financial controls. 

They immediately saw benefits, with Peter Grimshaw, Group Financial Controller at Canstar, noting: "One of the key improvements was having a real-time view of financial results. With NetSuite, we don't have to wait until the end of the month to do all the work. Instead, QA and processing occurs as we go, helping to balance the team's workload. NetSuite has allowed us to implement a far more modern approach to running the finance function."

The financial benefits continued with NetSuite giving Canstar the ability to oversee multi-jurisdiction management on a single platform, complete with real-time analytics and reporting capabilities. This has allowed Canstar to consolidate accounts and financial statements directly from the system, including automated multi-currency conversions and inter-company transactions.

Mitchell noted the efficiency gains: "We've recently rewritten our board reporting and weekly executive reporting, and it was completed in a very short period of time. Without NetSuite, there's no way we could have done it so efficiently."

Enhanced integration and customisation
Moving to the highly extensible NetSuite platform also opened up new integration opportunities. Annexa helped Canstar customise their accounts payable and receivable approval processes to meet internal control requirements and implemented invoicing automations. With these foundations in place, they're now exploring direct API connections for seamless data transfer between platforms, including expense management, payroll, and bespoke revenue management systems.

A FUTURE-FOCUSED APPROACH
As Canstar moves beyond the initial implementation phase, they're continuously reviewing existing systems to determine if NetSuite can be further leveraged. Future plans include utilising NetSuite for planning and forecasting, centralising vendor contract management, and introducing more system integrations to create a cohesive ecosystem with NetSuite at its core.

Mitchell emphasised their forward-thinking strategy: "Every time we're reviewing a system that we're not using NetSuite for, the first question is, 'We run on NetSuite, can we leverage it in some way?'"

Lessons learned and the path forward
Canstar's journey from a tangled web of systems to a streamlined, integrated ecosystem offers valuable insights for businesses facing similar challenges:

• Unifying your operations on a single, cohesive platform will significantly enhance efficiency and reduce errors.
• Gaining immediate visibility into your financial information allows you to make faster and more informed decisions.
• Integrating seamlessly with other tools and platforms improves your overall operational performance.
• Choosing a flexible, cloud-based ERP system like NetSuite equips your business for future growth without the need for frequent system overhauls.
• Centralising data and automating processes helps you overcome the challenges of managing multiple subsidiaries and currencies.
• Ensuring consistent visibility across your team improves collaboration and efficiency.
• Utilising an extensible platform allows for ongoing enhancements and integrations, keeping your operations agile and up-to-date.

Ready to transform your business?
Canstar's successful partnership with Annexa and the implementation of NetSuite is a compelling case study for businesses seeking to modernise their operations. By embracing cloud ERP, they've not only resolved their immediate challenges but also positioned themselves for sustained growth and innovation.

If you're interested in learning more about how a cloud-based ERP system can streamline your business operations, consider reaching out to Annexa, who can guide you through the transformation journey.

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