Disclaimer: This guide contains information and pricing estimates current as of early 2026. ERP system costs, features, and market positions are subject to change. All pricing figures are indicative only and have likely increased due to inflation and vendor pricing adjustments. Confirm current pricing and capabilities with vendors before making decisions.
For growing Australian businesses, there comes a point where Xero or MYOB stops meeting your needs. You've outgrown the simplicity that made these platforms attractive in the first place, and you're hitting limitations around inventory management, multi-entity consolidation, or complex workflows.
This is when businesses start looking at Enterprise Resource Planning (ERP) systems. These platforms offer significantly more functionality than accounting software, integrating finance, operations, inventory, CRM, and reporting into one system.
But here's the reality: moving to an ERP is expensive, time-consuming, and risky. Many Australian SMEs make this transition too early, lured by sales presentations that promise to solve all their problems. Others wait too long, limping along with disconnected systems that cost more in inefficiency than an ERP would.
This guide examines the five most widely adopted ERP systems in the Australian mid-market, explains when businesses genuinely need to make this move, and provides warnings about common implementation failures.
Before we discuss full ERP systems, it's worth acknowledging that Xero has built an extensive ecosystem of add-on applications. Many businesses can extend Xero's functionality significantly without migrating to an ERP.
Xero's ecosystem includes inventory management through apps like Cin7, Unleashed, or Dear Systems. These integrate with Xero for financial data while providing sophisticated inventory tracking, warehousing, and manufacturing capabilities. Many businesses run successfully on Xero plus a quality inventory system for years before needing a full ERP.
Advanced reporting through Fathom, Spotlight Reporting, or Futrli pulls Xero data and creates management reports, forecasts, and dashboards far beyond Xero's native reporting. Project management and job costing through WorkflowMax, Deputy, or similar platforms works well for construction, trades, and professional services firms. CRM integration with Salesforce, HubSpot, or Pipedrive connects sales and customer management to Xero for invoicing and payment tracking without requiring an all-in-one ERP.
This strategy works well for businesses between $2M and $15M revenue, particularly those with relatively straightforward operations. You maintain Xero as your financial system of record while using best-of-breed applications for specific functions. The cost is typically much lower than ERP implementation. You might spend $500 to $2,000 monthly on Xero plus apps versus $50,000 to $200,000 (plus GST) implementing an ERP, followed by $2,000 to $10,000 monthly (plus GST) in subscription and support costs.
However, the Xero add-on approach has limits. As your app stack grows, integration complexity increases. You're managing multiple subscriptions, multiple support relationships, and multiple sources of truth for your data. When apps don't sync properly, you spend time reconciling discrepancies. Reporting across systems becomes challenging. If sales data lives in your CRM, inventory in Unleashed, and finances in Xero, creating unified management reports requires exporting data and manipulating spreadsheets.
Some business models simply don't work with this approach. Heavy manufacturing, complex multi-entity structures, or sophisticated supply chain requirements often need the tight integration only an ERP provides.
Before diving into detailed analysis, here's how the five main systems compare. All pricing figures are approximate, include GST unless otherwise noted, and are subject to change based on vendor pricing policies and currency fluctuations.
These figures vary significantly based on users, modules, customisation, and implementation partner chosen. Always get detailed written quotes before committing.
NetSuite is the market leader in cloud ERP globally, with strong presence in Australia. It's a comprehensive platform covering financials, CRM, inventory, e-commerce, and advanced reporting.
NetSuite's financial management includes multi-currency, multi-entity consolidation, revenue recognition, and sophisticated budgeting. The system handles complex accounting scenarios including intercompany transactions and transfer pricing. Inventory and order management tracks stock across multiple locations with serial and lot control, managing purchasing, sales orders, fulfilment, and shipping with real-time visibility.
SuiteCommerce provides integrated e-commerce functionality. Businesses can run online stores directly within NetSuite, with inventory, orders, and customer data synchronised across channels. The platform includes SuitePeople for HR management and payroll, though many Australian businesses use local payroll software instead due to complexity around awards and compliance.
NetSuite licenses on a per-user basis with additional fees for modules and transaction volume. A typical mid-sized Australian business might pay $3,000 to $6,000 monthly (plus GST) for licensing, with implementation costs between $80,000 and $200,000 (plus GST) depending on complexity.
NetSuite excels at managing multi-location and international operations. The system was built for the cloud from inception, so it's accessible anywhere without on-premise servers. Updates happen automatically, though it's important to note that while these updates rarely disrupt daily operations, significant updates can require user retraining and testing. Customisations may occasionally need adjustment after major updates, so factor ongoing maintenance into your total cost of ownership.
The reporting and dashboard functionality is powerful, allowing custom KPIs and management reports without extensive technical knowledge. NetSuite's ecosystem of add-ons and integrations is mature, with solutions for most industry-specific requirements. For businesses planning significant growth or international expansion, NetSuite scales well without being outgrown.
However, NetSuite is expensive in both implementation and ongoing costs. The system is complex, requiring significant training for users to become proficient. Simple tasks that take seconds in Xero might require multiple steps and screens in NetSuite. Implementation timelines typically run 6 to 12 months for reasonably complex deployments. During this period, you're paying for both your old system and NetSuite while working through configuration and testing.
Australian-specific compliance requires configuration and partner support. While NetSuite handles Australian tax and reporting requirements, it's not as naturally aligned with local practices as systems built specifically for this market. The system's flexibility is both a strength and weakness. Because NetSuite can be configured many ways, poor implementation decisions create ongoing inefficiency.
NetSuite suits businesses with $15M+ revenue operating in multiple locations or countries. SaaS businesses, wholesale distributors, and companies with complex inventory management often benefit most. If you're managing intercompany transactions, multiple currencies, or complex revenue recognition, NetSuite's capabilities justify the cost and complexity.
Business Central is Microsoft's mid-market ERP offering. It integrates deeply with the Microsoft ecosystem including Office 365, Teams, and Power BI.
Financial management covers general ledger, accounts payable and receivable, bank reconciliation, and fixed asset management. The system handles Australian GST, BAS reporting, and PAYG calculations with built-in compliance. Inventory and supply chain management includes purchasing, sales, warehouse management, and assembly or manufacturing capabilities. The system tracks inventory across multiple locations with bin-level precision if required.
Project management functionality suits professional services and project-based businesses. You can track time, expenses, and resource allocation against projects with built-in billing and profitability analysis. The platform integrates with Microsoft's broader ecosystem. Teams integration allows approvals and notifications directly in Teams. Power BI creates advanced reports and dashboards. Office 365 documents link directly to records within Business Central.
Business Central uses subscription pricing per user per month. A typical implementation for 10 to 15 users costs between $50,000 and $120,000 (plus GST), with monthly subscription fees of $2,000 to $6,000 (plus GST) depending on user count and required functionality. Microsoft offers both cloud-hosted and on-premise deployment options, though most new implementations choose cloud for automatic updates and lower infrastructure costs.
For businesses already using Microsoft 365, the integration is seamless. Users work within familiar interfaces, reducing training requirements. Document management through SharePoint, email integration with Outlook, and Teams notifications create an ecosystem that feels cohesive. Business Central's Australian localisation is mature, handling local tax requirements, BAS reporting, and banking formats without extensive customisation.
However, it's worth noting that while Business Central handles core payroll functions, full compliance with STP Phase 2 and Australian award complexity often requires add-ons like KeyPay or Employment Hero. Factor this additional cost and integration requirement into your planning.
Implementation timelines are typically shorter than NetSuite, often 4 to 8 months for standard deployments. The system is less complex than larger ERP platforms, making it more accessible for mid-sized businesses. Microsoft's partner network in Australia is extensive, providing many implementation options and competitive pricing.
While Business Central handles many scenarios well, it's not as deep in specific areas as specialised systems. Manufacturing functionality is adequate but not as sophisticated as dedicated manufacturing ERPs. The system's configurability is more limited than NetSuite. For businesses with highly specific workflows, you may find yourself working within Business Central's constraints rather than bending the system to your exact requirements.
Customisation can be expensive and creates complications during Microsoft's regular updates. The platform uses extensions and apps, which sometimes conflict or break after updates, requiring developer intervention to fix.
Business Central works well for service-based businesses, distribution companies, and light manufacturers with $5M to $40M revenue. Companies heavily invested in Microsoft's ecosystem benefit most from the tight integration. If your operations are relatively standard and don't require extensive customisation, Business Central offers good value with faster implementation than more complex ERP systems.
SAP Business One is SAP's offering for the mid-market, distinct from their larger SAP S/4HANA enterprise platform. It's particularly strong in manufacturing and wholesale distribution.
Financial management includes general ledger, controlling, banking, and financial reporting with multi-currency support. The system handles Australian tax requirements including GST and provides BAS-ready reporting. Inventory and manufacturing functionality is comprehensive. The system manages bills of materials, production planning, material requirements planning (MRP), and shop floor control. Manufacturers with complex production processes often choose SAP Business One for these capabilities.
Sales and purchasing modules handle quotes, orders, delivery, and invoicing with automated workflows. The system tracks commitments and availability across multiple warehouses. Business intelligence is built into the platform using SAP HANA database technology, providing real-time analytics and dashboard capabilities without requiring separate reporting tools.
SAP Business One licenses by user type including professional, limited, or indirect users. Implementation costs typically range from $60,000 to $180,000 (plus GST) for mid-sized businesses, with monthly costs between $2,500 and $10,000 (plus GST) including licensing and support. The system can be deployed on-premise or in the cloud, with many Australian businesses choosing cloud deployment to reduce infrastructure requirements.
For manufacturing businesses, SAP Business One offers sophisticated production planning and shop floor control. The MRP engine handles complex manufacturing scenarios with multiple levels of bills of materials. The system's inventory management includes batch and serial tracking, quality management, and warehouse management capabilities that exceed most mid-market ERPs.
SAP's brand recognition provides confidence, particularly for businesses planning eventual graduation to SAP's enterprise platforms. The upgrade path exists if you grow significantly, though it's a substantial undertaking. Australian partners with deep SAP Business One expertise are available, providing industry-specific implementations for manufacturing, wholesale, and distribution businesses.
However, SAP Business One's user interface feels dated compared to newer cloud platforms. The system doesn't have the modern, intuitive design that users accustomed to Xero or cloud applications expect. Implementation complexity is high. The system requires significant configuration and business process mapping to deploy effectively. Many implementations take 8 to 12 months and exceed original budgets.
Australian localisation requires specific configuration and partner expertise. While the system can handle local requirements, it's not as naturally aligned with Australian business practices as locally-developed ERPs. The system's reporting, while functional, requires technical knowledge to customise. Standard reports cover basic requirements, but custom reports often need developer involvement.
SAP Business One suits manufacturing businesses with $10M to $50M revenue, particularly those with complex production requirements or detailed inventory tracking needs. Wholesale distributors with sophisticated pricing models and multi-warehouse operations also benefit. If your business involves intricate manufacturing processes, quality control requirements, or compliance-driven traceability, SAP Business One's depth justifies the implementation complexity.
MYOB Advanced is the white-labelled version of Acumatica, adapted for the Australian and New Zealand markets. It combines American ERP functionality with MYOB's local tax and compliance expertise.
Financial management includes general ledger, cash management, accounts payable and receivable, and fixed assets. The system handles Australian GST, BAS preparation, and provides ATO-compliant reporting formats. Distribution functionality covers purchasing, sales, inventory, and warehouse management. The system manages multiple warehouses with transfer orders and advanced inventory costing methods.
Project accounting suits professional services and project-based manufacturers. Time and expense tracking links to project billing with resource management and project profitability analysis. Manufacturing capabilities include light assembly and production management, though not as sophisticated as SAP Business One or dedicated manufacturing ERPs.
The system is fully cloud-based with unlimited user licensing. You pay for the platform and modules rather than per-user, which benefits businesses with many users who need occasional access. A typical mid-sized implementation costs $45,000 to $120,000 (plus GST), with monthly fees of $1,800 to $6,000 (plus GST).
The unlimited user model benefits businesses where many employees need system access. Customer service staff, warehouse workers, and project managers can all have accounts without increasing licensing costs, making the per-user cost very competitive for larger teams.
Australian compliance is built-in, with BAS reporting, STP integration, and local banking formats configured correctly out of the box. MYOB's expertise in Australian tax and payroll shows in Advanced's localisation. Implementation partners often complete deployments in 4 to 8 months, faster than more complex ERP systems. The platform is reasonably intuitive for users familiar with cloud applications.
MYOB provides direct support and account management, which some businesses prefer over relying entirely on third-party partners for assistance.
However, MYOB Advanced suffers from implementation quality issues that are worth discussing in detail. The system's flexibility means poor implementation decisions create lasting inefficiency, and the dependency on partner quality is exceptionally high with this platform compared to others. Many businesses report implementations that exceed budget and timeline, with configurations that don't support their workflows adequately.
Partner quality varies dramatically in the MYOB Advanced ecosystem. Some implementations succeed with competent partners, while others become expensive disasters requiring re-implementation. This isn't unique to MYOB Advanced, but the rate of problematic implementations appears higher than competitors.
The system's manufacturing capabilities are limited compared to dedicated manufacturing ERPs. Businesses with complex production requirements often find Advanced insufficient for their needs. Integration with MYOB's other products like MYOB Exo or MYOB AccountRight is surprisingly limited, so don't assume seamless integration if you're using other MYOB solutions.
A critical warning about MYOB Advanced: This system has a higher rate of buyer's remorse than any other on this list. Businesses are sold on the platform by smooth sales presentations and reasonable pricing, only to discover during implementation that their specific requirements aren't supported well or require expensive customisation not included in the original quote.
Many businesses report that their implementation partner underestimated scope, resulting in substantial budget overruns. Others find that standard functionality demonstrated in sales presentations requires additional modules or customisation to actually work in their environment. The gap between sales demonstration and production reality can be significant.
Our advice: If considering MYOB Advanced, insist on a detailed proof of concept with your own data and specific workflows before signing any contract. Test the exact scenarios your business runs daily, not generic demonstrations. Don't accept assurances that something "can be done" without seeing it working with your actual data and configuration.
Engage an independent advisor to review the proposed configuration and implementation plan before committing. Many MYOB Advanced problems are avoidable with proper planning and realistic expectations, but you need someone in your corner who isn't earning commission on the sale.
MYOB Advanced works best for Australian distribution businesses with $5M to $25M revenue, where unlimited user licensing provides cost advantage and standard distribution workflows don't require heavy customisation. Professional services firms with project accounting needs can succeed with Advanced if their requirements align with the platform's native capabilities without extensive customisation.
Pronto XI is an Australian-developed ERP system with strong presence in local manufacturing and distribution markets. It's been a staple of the Australian mid-market for decades.
Financial management covers general ledger, accounts payable and receivable, cash book, and fixed assets. The system is built for Australian tax and compliance requirements with BAS reporting, PAYG, and super calculation integrated throughout. Distribution functionality includes sales order processing, purchasing, inventory management, and warehouse control. The system handles complex pricing scenarios, promotions, and customer-specific arrangements common in Australian distribution.
Manufacturing modules support discrete and process manufacturing with production planning, shop floor control, and quality management. The system handles batch and lot traceability required by regulated industries. The platform includes retail point-of-sale capabilities, making it suitable for businesses operating both wholesale and retail channels.
Pronto XI is typically licensed on a perpetual basis with annual maintenance fees, though subscription models are increasingly available. Implementation costs range from $50,000 to $140,000 (plus GST) for mid-sized businesses, with ongoing monthly costs of $2,000 to $7,000 (plus GST) including support and hosting if cloud-deployed.
Pronto's Australian heritage means the system naturally handles local business practices. Tax, banking, and reporting requirements work correctly without requiring extensive localisation or configuration. For businesses in manufacturing, wholesale, or distribution, Pronto includes industry-specific functionality developed over decades of serving these markets. Many workflow requirements are standard rather than requiring customisation.
The partner network in Australia has deep expertise. Implementation partners have often been working with Pronto for years, providing reliable implementation and ongoing support. Pronto offers relatively stable technology. While it's not as modern as cloud-first platforms, businesses value the system's maturity and predictability.
However, Pronto's technology platform is aging. The user interface and underlying architecture feel dated compared to newer cloud ERPs. Users expect modern, responsive interfaces, and Pronto doesn't deliver this experience to the same degree as newer platforms. Cloud deployment is available, but the system was originally designed for on-premise installation. While it's offered as a hosted service, it is not a native, elastic cloud SaaS application like NetSuite or Business Central, which impacts scalability and update management. This legacy architecture shows in various aspects of the platform.
The system's reporting requires technical knowledge. While standard reports cover most scenarios, custom reporting often needs SQL knowledge or assistance from your implementation partner. Pronto's market position has weakened as businesses migrate to cloud-first platforms. While existing users often remain satisfied, new implementations are less common than a decade ago. However, Pronto has been investing in cloud modernisation and new UI updates through 2025 and 2026, working to address some of these concerns.
Pronto suits Australian manufacturers and distributors with $5M to $35M revenue, particularly those in regulated industries requiring traceability and quality management. Food and beverage manufacturers, pharmaceutical distributors, and automotive parts suppliers are typical Pronto users. Businesses that value stability and proven Australian functionality over cutting-edge technology benefit from Pronto's maturity.
This is the most important question, and it's where many businesses make expensive mistakes. ERP vendors and their implementation partners have strong financial incentive to convince you that you need an ERP now. But the truth is many businesses can operate successfully on Xero plus good add-ons for much longer than sales people suggest.
Before committing to ERP implementation, thoroughly explore extending Xero's capabilities. For many Australian SMEs, this is more cost-effective and less risky than ERP migration.
The extended Xero model uses Xero for general ledger, accounts payable and receivable, bank reconciliation, and basic financial reporting as the core. Add inventory systems like Cin7, Unleashed, or Dear Systems for sophisticated inventory management, purchasing, sales, and warehousing. Use reporting tools like Fathom, Spotlight Reporting, or Futrli for management reports, dashboards, and forecasting. Employ payroll systems like Deputy, Employment Hero, or KeyPay for payroll processing and STP compliance. Include project management tools like WorkflowMax or Practice Ignition for project management and job costing. Connect CRM platforms like Salesforce, HubSpot, or Pipedrive for sales pipeline and customer management.
This approach typically costs $1,000 to $5,000 monthly depending on user count and features required, compared to ERP total cost of ownership with implementation of $50,000 to $250,000 (plus GST), monthly subscription of $2,000 to $15,000 (plus GST), and ongoing support and enhancement of $500 to $3,000 monthly (plus GST).
The extended Xero approach provides significant functionality at a fraction of ERP cost. Many businesses operate successfully this way up to $30M revenue or more. However, this approach breaks down when integration between systems becomes unreliable or when reporting across systems requires too much manual work. If you're spending several hours daily reconciling data between applications or manually compiling management reports, the cost in staff time might justify ERP implementation.
Multi-entity businesses struggle with the extended Xero approach because consolidation and intercompany management require either an ERP or very sophisticated accounting skills and manual processes.
If you decide to proceed with ERP implementation, understand these realities to protect your business from common disasters:
How long does a typical ERP implementation take?
Plan for 6 to 12 months for mid-sized businesses, with simpler deployments potentially completing in 4 to 6 months. Complex organisations with multiple entities, locations, or industries often require 12 to 18 months. Anyone promising implementation in 2 to 3 months is either dramatically underscoping or planning a very basic deployment that may not meet your needs.
Can we implement an ERP in phases?
Yes, and this often reduces risk. Many businesses start with financials and core modules, then add inventory, manufacturing, or other functions in subsequent phases. This spreads cost and allows staff to adapt gradually. However, some ERPs work poorly when partially implemented, so verify this approach suits your chosen platform before committing.
What if we choose the wrong ERP?
This happens more often than vendors admit. If you realise during implementation that the ERP doesn't fit your business, you face difficult choices. You can attempt to make it work through expensive customisation and compromised processes. You can write off your investment and start again with a different system. Or you can return to your old system and lose everything invested. This is why thorough evaluation before signing is critical.
Should we hire an internal ERP specialist?
For businesses with $20M+ revenue, having someone internally who understands your ERP makes sense. This person acts as the liaison between users and external support, handles configuration changes, and develops reports. For smaller businesses, this role can be part-time or covered by your implementation partner's ongoing support agreement.
How do we manage the transition period?
Run old and new systems in parallel for at least one month. This allows comparison of results and validation that the new system produces correct output. Continue paying for your old system during implementation rather than cancelling early to save subscription costs. The safety net is worth far more than a few months of subscription fees.
What happens to our historical data?
Most implementations migrate recent transactional data (1 to 2 years) and summarise older information. Full history is typically maintained in your old system, available for reference but not in the new ERP. Expect to run both systems for queries about historical transactions for some time after going live.
Can we negotiate better pricing?
Absolutely. ERP vendors and implementation partners expect negotiation. Get quotes from multiple partners for the same system. Challenge pricing that seems excessive. Ask about package deals that bundle modules or services. The initial quote is rarely the final price, particularly in competitive situations.
What's the biggest risk in ERP implementation?
Business disruption during and after go-live is the biggest risk. If the system doesn't work properly, you can't invoice customers, receive payments, or manage operations effectively. This is why thorough testing and having your old system available as backup is essential. Many businesses underestimate this risk, assuming everything will work because the vendor says it will.
We review and update our articles periodically. At the time of writing in early 2026, this information was assessed as current based on our experience with ERP systems in the Australian market. System features, pricing, and market positions are subject to change.
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