This article is the third edition of our Scaling with Xero series. Over five weeks, weâre revisiting the biggest insights from our recent webinar series, where finance leaders and app partners shared how fast-growing businesses are scaling on Xero without jumping to ERP.
So far, weâve asked the big question: "how far can you go on Xero?" and dug into inventory challenges with CIN7. This week, we focus on one of the most critical pressure points for multi-entity finance teams: bringing order and automation to your group's month-end processes.
Our panel included:
Together, they unpacked where Xero shines, where it strains, and how finance leaders are tackling the complexity of month end across growing groups.
Xeroâs strengths at month end
Amir opened the discussion by pushing back against the idea that Xero canât support complex groups:
âThereâs nothing an ERP can do that Xero canât, if you use it with the right add-ons. The advantage is that anybody can use Xero, you donât need expensive licenses or specialist skills.â
He explained that with tools like Mayday for intercompany, Xero can handle reconciliations, journals, and reporting across multiple entities:
âYou can manage intercompany reconciliations and recharges in minutes. In my view, thereâs no real disadvantage to using Xero for month end, you can do everything youâd expect in a large ERP environment.â
The flip side: discipline and controls
Ernest agreed Xero is powerful, but noted its openness can cut both ways.
His advice:
- Start with discipline, a well-designed chart of accounts and clear processes.
- Treat Xero as part of a broader stack from day one.
- Donât wait until youâre large to bring in tools like Mayday or Airtable.
âStart with Xero, but start with Mayday on day one. Start with Airtable on day one. Build the stack as if youâre going to be big.â
An ERP mindset in a Xero world
Fiona brought an ERP veteranâs perspective. Having worked globally with larger systems, she initially doubted Xero could cope:
âWhen I first arrived, I hadnât used Xero before. I went looking for controls I expected from ERPs, supplier naming conventions, audit trails, recurring journals. To my surprise, I found most of them.â
Her stumbling block was consolidated reporting. For one group of 15 entities with extensive cross-charges, Xero alone wasnât enough. The solution was building a stack:
- Xero for the GL.
- Mayday for intercompany.
- Syft for consolidated visibility of AP, AR, and inventory.
- Dext for AP automation.
âThe fastest way to do month end is to look at the group as a whole, scan for anomalies, and drill down. With the right tools feeding into and out of Xero, weâve been able to achieve that.â
The ERP temptation and why many resist
Both Fiona and Ernest had explored ERP, and both decided against it.
Ernest explained:
âImplementation was quoted at over $160,000, with $60,000 a year in ongoing costs. Every module was extra, every integration was expensive. Compared to that, our Xero stack costs far less, and I can hire extra accountants instead of funding ERP licenses.â
Fiona highlighted team skills:
âMost of my team are used to Xero. Moving them to NetSuite or AX would be a massive lift weâre not resourced for. With Xero and the right ecosystem, we get what we need without that disruption.â
Amir summed it up:
â99% of the time, moving to ERP isnât a system problem, itâs a people problem. Teams donât know what add-ons to use or how to build the stack properly. Solve that first before taking on the bigger headache of ERP.â
Building for growth
The panel also discussed how to plan a stack that grows with the business.
Fiona described how her team started with Mayday just for intercompany reconciliations, but then expanded:
âWe explored other features, like using locations and departments in Xero with Mayday to allocate corporate costs across 15 entities automatically. Then we moved into using Mayday inside bank rec for our central credit card. That saves us hours every month.â
Her advice: be curious, test features, and keep exploring.
Amir agreed:
âDonât wait for problems before you act. The cost of Xero add-ons is tiny compared to ERP. Start early, experiment, and fix anything that feels manual or time-consuming.â
Ernest added a note of caution about overcommitting:
âIâll rip off Frankensteinâs arm and put on a better one the moment I find it. But I avoid anything that locks me in. Add-ons have to respect that the data belongs to the business, I need to be able to leave if they collapse.â
Practical challenges: maintenance and hygiene
An audience question turned to managing a growing stack. Ernest described his approach:
âYou need a framework. I track every app in Airtable, its purpose, owners, contacts, certifications. User management is a challenge in Xero, so you have to control it externally. Maintenance is part of the financial controllerâs job.â
Fiona added that supplier consistency is critical:
âWe define naming conventions, uppercase or not, PTY included or not, and enforce them through Dext and regular reviews in Syft. Xeroâs merge functionality helps too, but itâs more about process than system.â
The bottom line
The panelâs message was clear: Xero can handle multi-entity month end.
âAt the end of the day, accounting is debits and credits. Xero does that really well. All the complexity sits in the peripherals.â - Fiona MacDonald
âThe GL is for accounting. Your operational data belongs elsewhere. Donât overload Xero, use it cleanly, and let the stack do the heavy lifting.â - Ernest Chunge
âYou can do everything you need for month end on Xero with add-ons. The key advantage is that anyone can use it.â - Amir Mirshams
If you missed the full conversation, you can watch the recording here.
Next week in the Scaling with Xero series, weâll dive into Automated Consolidated Reporting with dataSights.
.png?upscale=true&width=1196&upscale=true&name=Untitled%20design%20(42).png)
