Selecting the Right ERP System: Life After Xero
As your business expands, the systems that once served you well can start to feel like roadblocks. Managing multiple subsidiaries, handling diverse currencies, and delivering accurate financial reports quickly becomes overwhelming if you’re relying on entry-level tools like Xero.
As discussed in our previous blog, there are many signs to indicate it is the right time to move on from Xero. Whether you are feeling any of the frustrations noted above, or you are planning for future growth, the right ERP (Enterprise Resource Planning) system isn’t just a nice-to-have—it’s essential for maintaining control and driving further growth. However, choosing the right ERP solution can be challenging. This decision will impact your business for years to come, and it’s a big investment, so it’s crucial to get it right.
While the system selection phase may seem daunting, it doesn’t have to be. If done correctly, it’s a straightforward process driven by understanding your business needs and long-term goals.
In this blog, we discuss MacroFin’s approach to system selection, which has help 100+ Xero customers upgrade to the right ERP system for them. This includes:
- Data Preparation
- Evaluating Technology, Ecosystem, and the Right Partner
- Vendor Engagement
- Timelines
Data Preparation – The Foundation for ERP Success
Before diving into system features or vendor demos, it is crucial to get your data in order. The quality and structure of your data can significantly impact both the selection process and the eventual success of your ERP implementation. Here are three key aspects to focus on when it comes to your data:
- Volume: Assess the volume of data you currently manage and anticipate growth. How much data will you be processing in the next few years? Your ERP needs to scale with you.
- Structure: Standardise data formats across departments. If your data is disorganised or inconsistent, now is the time to clean it up.
- Future Needs: Think about the type of data and reporting you will need in the future. Will your system need to handle multi-company structures, multiple currencies, or regulatory compliance across regions? The system you choose should accommodate these needs seamlessly.
At this point, it is important to consider what your data should look like, rather than what it looks like right now. If there are processes and structures in place that cause issues – be honest and clear about what they are, as this will allow you to gain a better picture of what you require from your chosen system.
Many ERP failures stem from poor data migration, which often starts with bad data management in the early stages. By cleaning and organising your data now, you’re setting the stage for a smoother implementation process later.
Focus on Core Functionality
It can be tempting to overcomplicate things by considering every possible feature each system has to offer. In the opening stages however, the focus should be on the core functionality that your business absolutely needs to operate effectively. Every ERP system offers a plethora of features, but what you truly need is a system that addresses your unique requirements, so it’s important to outline these from the start.
Of course, it’s important to consider future needs, and working with a successful partner can help develop a staged implementation plan for further functionality, but at the stage of selection, you need to know what systems deliver the core financial elements of your business.
Usually, these are some of the core functionalities businesses need when upgrading to an ERP:
- Multiple Companies & Currencies
- Cross-Border Tax Compliance
- Cloud vs. On-Premise Hosting
- Strong Financial Reporting Capabilities
Any ERP system worth considering should offer these core features as a baseline, as it’s likely that at least one of these requirements is why you are moving from Xero. You don’t need to overcomplicate the selection by focusing on non-essential extras.
The key is to ask yourself, what does the system need to do to achieve your business goals? Once you define these core requirements, you’ll be able to focus on the essentials without getting distracted by unnecessary features.
Technology, Ecosystem, and the Right Partner
ERP selection isn’t just about picking software; it’s about ensuring the right technology ecosystem is in place and selecting a partner who can help you leverage the system to its fullest potential.
Technology
Make sure the platform you choose is future flexible. It’s more important to be on the right platform with room to grow than to have a perfectly tailored solution that limits flexibility. Look for a system that can scale and adapt as your business evolves.
Ecosystem
Your ERP system won’t exist in a vacuum. It needs to integrate smoothly with other tools in your tech stack. This usually includes things like CRM systems or inventory management software. Choose an ERP with a robust API and that offers seamless integration or apps, supporting a healthy ecosystem which allows you to tailor the system to your business and operate with fully unified data.
Partner
Choosing the right ERP partner is just as important as choosing the right system. Your partner will be responsible for guiding you through the implementation process, helping you configure the system, and providing ongoing support.
Ask potential partners:
- How many times have they implemented the ERP system you’re considering?
- What experience do they have implementing specifically for your industry?
- What is their post-implementation support like?
- What finance system do they use internally?
Vendor Engagement
When engaging vendors, go in prepared. You’re not just shopping for software; you’re selecting a long-term business partner. Here are some things to consider before speaking to vendors, to make sure you get the most out of these interactions:
- Scenario Testing
- Don’t just watch a generic product demo. Give vendors specific scenarios that are critical to your business and ask them to show you how their system handles them in real-time. For example, if you need to manage multiple subsidiaries with intercompany transactions, make sure the demo covers that.
- Industry Experience
- Look for vendors who have experience working with businesses similar to yours in terms of size, industry, and complexity. This is crucial because such vendors will bring a wealth of industry-specific best practices to the table. Good vendors should have case studies or references that not only demonstrate their expertise but also provide tangible examples of successful implementations in environments like yours.
- This experience means you’re not navigating your setup alone. A knowledgeable vendor can advise you on what works (and what doesn’t), help refine your approach and even challenge your assumptions where necessary, ensuring your systems are designed optimally from the start. This collaborative expertise allows you to avoid common pitfalls, accelerate your learning curve, and hit the ground running with a configuration that’s both efficient and aligned with industry standards.
It is always worth noting that vendors are of course looking to sell you their products, making the selection of the correct partner even more important as they may have insights into various vendors within your industry.
- This experience means you’re not navigating your setup alone. A knowledgeable vendor can advise you on what works (and what doesn’t), help refine your approach and even challenge your assumptions where necessary, ensuring your systems are designed optimally from the start. This collaborative expertise allows you to avoid common pitfalls, accelerate your learning curve, and hit the ground running with a configuration that’s both efficient and aligned with industry standards.
- Cost Transparency
- Understand the total cost of ownership upfront. Ask about ongoing maintenance costs, upgrade fees, and whether the vendor charges for additional users or modules.
Cost can always be a hard topic to navigate but knowing what you need the system to do gives you the power to make the right decision based on your needs and the value that will be delivered, rather than just the price tag.
Additionally, your selected vendor should be able to provide typical ROI examples to help you build a strong business case for your new ERP system. This can be invaluable in justifying and fully understanding the investment as well as demonstrating the long-term value to your business growth.
- Understand the total cost of ownership upfront. Ask about ongoing maintenance costs, upgrade fees, and whether the vendor charges for additional users or modules.
By focusing on these areas, you can ensure the vendor is genuinely capable of meeting your needs, rather than just selling you the features they think you want.
Implementation Timeline
Lastly, set realistic timelines for implementation. Depending on the complexity of your business, the implementation process could take anywhere from six months to over a year. Allow time for system configuration, data migration, staff training, and post-go-live adjustments.
At MacroFin, we aim for a four-month implementation for most projects, but we always advise clients to plan for contingencies. Our unique finance-led approach to NetSuite implementations, shaped by 85+ years of client-side experience in senior finance roles, allows us to deliver realistic timelines tailored to your business needs. By combining structured scoping, clear documentation, and a well-defined project team, we ensure that all parties are aligned and prepared at every stage. This proactive, transparent approach helps us consistently achieve timely go-lives while avoiding the budget overruns and delays that are common in ERP projects.
Internal alignment is a key part of our approach. Make sure you know who the primary stakeholders are and get buy-in from the top. Define responsibilities and set clear milestones for sign-off. This ensures everyone is aligned and reduces the risk of delays or budget overruns.
Set Your Business Up for ERP Success
Selecting the right ERP system is about much more than software. It’s about aligning your business strategy with technology that scales and supports your growth. With the right data preparation, a focus on core functionality, and a carefully chosen implementation partner, you can ensure a smooth and successful ERP transition.
At MacroFin, we’re here to guide you every step of the way, helping you choose the right system, the right partner, and the right approach for your business. With over 300 successful projects under our belt, we know what it takes to make ERP selection a success.
Ready to Take the Next Step?
Contact us to start your ERP selection process today. Let MacroFin’s experts help you choose the perfect ERP system and implementation strategy for your growing business.
Why MacroFin?
We specialise in delivering tailored ERP solutions with a finance-first approach, ensuring core functionality that empowers your financial processes and provides a foundation for long-term scalability. Our unique team structure, which includes qualified finance professionals alongside technical experts, ensures your system is built to meet the real-world demands of finance teams, drive your strategy, and support your growth objectives.
By prioritising financial best practices and aligning the system with your strategic goals, we deliver ERP projects that run smoothly, on time, and on budget—making a measurable impact from day one.
