The weekly newsletter for forward-thinking finance leaders, especially those who leverage Xero and its ecosystem.
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Your weekly go-to guide to transform your finance function into a strategic powerhouse.

Welcome CFO Techstack Community 👋,

Last week, we wrapped up our Scaling with Xero series, where we unpacked the biggest insights from our recent webinars on how modern finance teams are staying on Xero for longer.

 

This week, we are launching a brand new series: ERP Survivors. We'll share the stories of finance leaders who went to war with ERPs and made it back. They survived implementation hell, runaway budgets, and consultant dependence. Scarred but wiser, they’ve rebuilt their Xero tech stacks stronger than ever. Their stories now serve as a warning, and a roadmap, for every finance leader standing at the same crossroads.

FEATURED ARTICLE

Introducing ERP Survivors

For finance leaders looking to scale, there comes a point when Xero alone feels like it’s no longer enough.

 

Expansion brings additional entities, cross-border reconciliations and transaction volumes that quickly push Xero to its limits.

 

At this point, many are convinced to “upgrade” to an ERP.

 

ERP vendors promise epic transformation: one system with total automation and infinite scalability. Sales pitches are well-polished, the marketing machine is prolific, and the message is clear: if you’re serious about growth, move to an ERP.

 

However, the reality is sobering. Time and again, ERP projects overshoot budgets and timelines, and rather than simplifying workloads, they weigh teams down with complex implementations, hidden costs and new layers of manual work.

 

Meet the ERP Survivors

 

More and more finance leaders have experienced the ERP battle and made it back, rebuilding their finance stacks on Xero + best-in-class apps after their ERP nightmare.

 

They are our ERP Survivors, and they are living proof that you don’t need to abandon Xero to scale. They show that, with the right tools around it, Xero remains the smarter, faster and cheaper foundation.

 

In this new series, we will be sharing unfiltered accounts from our real-life ERP Survivors. We begin by outlining the arc from Xero to ERP, and the return that defines our survivors' stories.

 

 

When Xero feels like it might not be enough

As businesses grow, finance leaders grapple with increasingly complex requirements as a result of multi-entity structures and global expansions.

 

Month end can stretch up to 10 days, manual workloads spike, and errors start to creep in.

 

Scaling on Xero feels like it’s hitting a ceiling, and finance leaders start to consider whether ERP is the next step.

 

Tyler Caskey, Partner at TheBeanCounters, hears this question from clients all the time:

 

"I'm growing from 2 to 3 entities, do I need to get off Xero?"

 

 

The ERP promise

ERP vendors wield their sales and marketing machines to cleverly position themselves as the next logical step, just as you’re feeling the pain. The pitch is simple and persuasive: one single system, total automation and infinite scalability.

 

Jordan McCreary, CEO at OG, explains what this felt like:

 

“We’re a 50+ entity business. The received wisdom is that we should use an ERP system.”

 

Although the cost of ERP is typically ten times more than Xero (the average annual subscription to NetSuite is $95k per year), you’re convinced it’s worth it to achieve an easier, error-free month end.

 

Finance leaders accept the pitch. Contracts are signed, expectations are sky-high, and we reach the point of no return.

 

 

The harsh reality

Once the ink is dry, the glow of ERP promise quickly fades as reality begins to bite.

 

The story is remarkably consistent: projects spiral beyond budget and timeline, and adoption turns out to be highly complex. Instead of making life easier, ERPs introduce new layers of manual work and dependency on consultants.

 

Jordan McCreary recalls:

 

“We had the experience of using NetSuite as a team, the massive subscription costs, the huge implementation fees.”

 

Mark Ashley sums his ERP experience up well:

 

“A tale as old as time. It went over budget, and over time.”

 

But, with the sunk cost fallacy at play, teams remain tied to their ERP migration. Days are wasted on drawn-out migrations, implementing irrelevant features, and wrestling with new processes that add little real value.

 

Rather than freeing finance leaders, the system becomes an addiction, consuming time, energy and careers.

 

 

The turning point

Eventually, finance leaders reach the same conclusion: ERP isn’t the answer.

 

Grand promises of one single system with infinite scalability rarely survive contact with day-to-day reality. Instead of delivering freedom and efficiency, ERPs leave teams stuck in finance hell, reliant on consultants and paying far more for functionality that isn't really an upgrade.

 

By contrast, those who step back from the ERP path discover a better way.

 

They find success in building modern finance stacks with Xero + apps.

 

Rather than bending processes to fit an “all-encompassing” system, finance leaders can choose the tools that solve their exact problems and work seamlessly together. They achieve the automation and scalability they desire, without the heavy costs and compromises of ERP.

 

Tyler Caskey recalls a client's experience:

 

“A global organisation recently went from Sage Intacct [ERP] to Xero with Mayday, Syft Analytics, Joiin and Fathom. Consolidations are 50% faster, and staff love the interface.”

 

 

The bottom line

The takeaway from the typical ERP Survivor journey is clear: finance teams don’t need to abandon Xero to scale.

 

ERP projects promise control, but too often deliver only cost, complexity and fatigue. Xero + apps, on the other hand, provides scalability with flexibility, at a far cheaper cost to your time and budget.

 

Our upcoming ERP Survivors Series, and the CFO Techstack community, ensure these stories are shared so that finance leaders can learn from them and avoid making the same mistakes.

 

 

Over the coming weeks, we’ll go beyond the broader journey and into the personal accounts of our ERP Survivors, starting with Mark Ashley, who experienced how an ERP promise turned into years of cost and complexity before a return to Xero revealed the better way forward.

 

👉 If you’re an ERP Survivor, we’d love to hear your story.

Reach out to emily.lockyer@getmayday.com

      COMMUNITY INSIGHTS

      🎤 How I stacked it

      Khalid Ahmed, CFO at EncompaaS, shares their tech stack.

      EncompaaS is an enterprise AI data platform that helps large enterprise and regulated organisations govern, prepare and enrich data for the AI era with confidence. EncompaaS has 4 entities across 3 countries: EncompaaS Software Limited (global head company in Australia), EncompaaS Pty Ltd (R&D entity in Australia), EncompaaS Limited (UK operations) and EncompaaS LLC (US operations).

      1702380326849
      Khalid Ahmed, CFO at EncompaaS explains that, "with Xero, each of the organisations have their own complexities and their requirements, but it is very simple to integrate what you need into it." He also looks to the future with positivity: "the app ecosystem around it is great, but it's also changing so rapidly that as we scale our business and as our processes change, I know that there will be something that is more than likely to fit our requirements."

      Here's what Khalid and his team are using:

        1. Mayday for Intercompany: We have a group treasury function, and have expenses that come in and out of every single organisation with about 8 different intercompany loans. When Mayday came along it was a game changer! Suddenly we could track all of the intercompany transactions and easily carry out reconciliations across the group from one interface. The team live within the Balancer and BRAG functions daily.

        2. Harvest for Project Management: Harvest has been great for our project management. We carried it over from when we used to own a consulting business within the group, even though we have much less client project management these days as we utilise implementation partners for our software. It’s still a must-have tool to track both our client and internal projects.

        3. Mosaic for FP&A: Mosaic is a bit more advanced and a bit more expensive than some of the other Xero apps, but what I liked about it is that it can pull information from multiple data sources (e.g. CRM, HRIS, csv files, etc.) and from all of your different Xero entities on a real granular transaction level. As part of the onboarding, you work with their FP&A specialists to integrate your pre-existing financial models into their app which then helps automate a lot of the data gathering, allowing you to spend more meaningful time on the forecasting and planning itself.
        4. Mayday for Deferred Revenue & Prepayments: I was looking at apps to automate our deferred revenue and our prepayments schedules as we have a few across the different entities and we're moving away from spreadsheets. Since Mayday brought out these new tools, I've stopped looking and can’t wait to be using this across all of our entities!

            Keen to share how you stack it? Email: emily.lockyer@getmayday.com

            UPCOMING EVENTS

            🗓️ Save the date

            Mayday Masterclass: How to automate intercompany recharges

            Weds 8th Oct

            In this live masterclass hosted by Mayday, you will learn how to eliminate the manual grind by automating your entire recharge process with Mayday Recharger, involving building flexible rules and posting invoices, bills or journals with a single click.

            UK Webinar - 11am BST: Register Here

            APAC Webinar - 11am AEST: Register Here

             

            Mayday Masterclass: How to put Deferred Revenue and Prepayments on Autopilot

            Thurs 9th Oct

            In this live masterclass hosted by Mayday, you will learn how to automate your entire deferred revenue and prepayments process by using Mayday’s AI-recommended schedules and posting journals directly into Xero or QBO with a single click.

              UK Webinar - 3pm BST: Register Here

              APAC Webinar - 11am AEST: Register Here

               

              CFO Masterclass | What's after Xero

              Weds 15th Oct, 8.30am BST

              ​Join Zanda, along with VantagePoint and Mayday Founder, David Tuck, for a CFO Masterclass designed to highlight to growth-stage companies what systems are available beyond Xero. During this masterclass, they will be focusing on key system decisions start-ups face once they reach that post-Xero stage. We’ll explore both legacy and emerging options, as well as new AI-native platforms.

              THE STACK EXCHANGE

              🧵 This week's top threads, from The Stack Exchange

               
              The Stack Exchange is a Slack forum for connecting with peers, sharing insights, and staying updated on apps and industry events, helping you transform your finance function into a strategic powerhouse.
               
              Here are this week's top 3 discussions from The Stack Exchange:
              1. Cards and virtual cards that integrate with Xero
              2. Experiences with the Xbert product
              3. US expansion advisors to manage US obligations

               

              Keen to join? Sign up here >

              NEW IN THE WORLD OF CFO SOFTWARE

              🗞️ News from the stack-o-sphere

               

              • Stripe releases 40+ upgrades, including 'launch your own stablecoin'. Learn more.
              • Fathom reveals upcoming integration with FreeAgent. Learn more.
              • Expensify releases Expensify Neue, their custom typeface. Learn more.

              WHAT THE DATA SAYS

              📊 Stat of the week

               

              74% of CFOs say they’ve experienced “increased influence on enterprise-wide decisions".

               

              Research by RPG

              MORE OF THE GOOD STUFF

              And lastly, our top picks!

               

              🎧 Podcast: “Car talk: M&A, AI and EVs changing the dealership landscape", Journal of Accountancy Podcast.

              📝  Article: “Managing everything, all at once, at your accounting firm”, AccountingToday.

              😆  Joke: Why are beets a CFO's favourite vegetable? Because a CFO always has to ‘beat’ the forecast.

              Why not forward this newsletter to someone you think would enjoy it?🙏

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