Has your business outgrown Xero or MYOB, with stock, jobs and orders scattered across spreadsheets and separate systems? An ERP can bring it all together, but it is one of the biggest and most expensive software decisions an Australian business makes. Choose well and you get one set of numbers everyone trusts, less retyping, and reports you can rely on. Choose badly and you pay for software nobody uses, that does not fit how you work, and that you are stuck with for years. This guide walks you through the choice in plain English.
Do You Actually Need an ERP?
Before comparing systems, check that you need one. An ERP (enterprise resource planning) system is one business system that runs your accounts, operations, stock, staff and customer records together, instead of in separate programs. You probably need one when:
- You have outgrown Xero or MYOB Essentials and need one system to run operations as well as the accounts
- Your information is spread across several systems that don't talk to each other (accounts, customers, stock, projects)
- Staff spend a lot of time retyping the same information into different systems
- Management reports have to be pulled together from several places and are always out of date
- You are growing and your current systems can't keep up
If your needs are narrower, say a better customer system or better stock control, you may do better with a specialist tool connected to Xero than with a full ERP. An ERP is a big investment, and it only makes sense when you need several parts of the business working together in one system.
ERP Options for Australian SMEs
Here are the main ERP systems that make sense for Australian businesses turning over $2-20M. For a detailed side-by-side comparison, see our SAP vs MYOB vs Pronto comparison.
Xero + Add-ons
Best for: Sole traders to small businesses ($0-$2M revenue)
Pricing: $50-$80/month for Xero + $50-$300/month for add-ons
Strengths: Low cost, easy to use, 1,000+ add-on apps that plug into it, excellent bank feeds
Weaknesses: Not a true ERP. Limited stock management, no manufacturing, and you run out of reporting quickly
Australian support: Excellent: strong Australian presence with local support
Verdict: A great place to start, but many businesses outgrow it as their operations get more complicated
MYOB Advanced (Acumatica)
Best for: Small to mid-sized businesses ($2M-$10M revenue)
Pricing: $200-$800/month depending on modules, plus partner implementation
Strengths: A true online (cloud) ERP, strong on Australian rules (GST, STP, PAYG), good stock and project features
Weaknesses: Screens feel dated next to newer systems; fewer implementation partners than SAP or NetSuite
Australian support: Very good: MYOB is Australian-owned with local support teams
Verdict: A solid choice for Australian businesses that want a proper ERP without big-company prices
SAP Business One
Best for: Mid-sized businesses ($5M-$20M revenue)
Pricing: $150-$250/user/month cloud, or $3,500/user perpetual licence, plus partner implementation
Strengths: Does a great deal, excellent for manufacturing and distribution, can be tailored heavily, trusted brand
Weaknesses: Complicated to set up, needs an experienced partner, costs more to own over time
Australian support: Good: multiple certified partners across Australia
Verdict: Best for complicated businesses that need tight control of operations and plan to grow a lot
Oracle NetSuite
Best for: Mid to large businesses ($10M-$50M+ revenue)
Pricing: $999+/month base + $99-$199/user/month, plus partner implementation
Strengths: Built to run online from the start, excellent financials, handles several companies and currencies, lots of add-ons
Weaknesses: Expensive for smaller businesses, complicated pricing, more than simple operations need
Australian support: Good: Oracle has Australian offices, but most partners are mid-sized firms
Verdict: Best for fast-growing businesses heading past $20M, or groups with several companies
Pronto Xi
Best for: Manufacturing and distribution businesses ($5M-$30M revenue)
Pricing: Custom pricing: implementation plus ongoing licences, quoted by Pronto and its partners
Strengths: Built for Australian manufacturing and distribution, excellent for the factory floor and warehouse
Weaknesses: Smaller vendor, new features arrive more slowly than with online-first rivals, little presence outside Australia and New Zealand
Australian support: Excellent: developed in Australia with dedicated local support
Verdict: Best for Australian manufacturers who need features built for their industry
For a closer look at two popular options for mid-sized businesses, read our MYOB Advanced vs NetSuite comparison.
7 Questions to Ask Before Choosing
Before you sit through any sales demos, work through these seven questions. They will shorten your list and help you avoid expensive mistakes.
1. What is your current annual revenue and 3-year growth target?
Why it matters: This decides the size of system you need. Buy too small and you will be changing systems again soon. Buy too big and you pay for features you will never use.
Guidance: Under $2M: Xero + add-ons. $2-5M: MYOB Advanced or a lighter ERP. $5-20M: SAP Business One, MYOB Advanced or NetSuite. $20M+: NetSuite or a larger system.
2. How many concurrent users need access?
Why it matters: Per-user pricing adds up fast. For example, 5 users at $200/month is manageable. 50 users at $200/month is $120,000/year in licences alone.
Guidance: Count everyone who needs to use it every day, not just finance. Include warehouse staff, sales and project managers. The number often surprises people.
3. What industry-specific requirements do you have?
Why it matters: General ERPs handle most business needs well. What is left over that is specific to your industry (parts lists for manufacturing, job costing for construction, time billing for professional services) often decides the right choice.
Guidance: List the processes that are specific to your industry. If they are critical, choose an ERP that handles them out of the box rather than relying on custom work.
4. What systems does the ERP need to integrate with?
Why it matters: How easily ERPs connect to other software varies a lot. Some have ready-made connections for common tools; others need custom work.
Guidance: List every system: online store, customer system (CRM), point of sale, warehouse system, payroll, banking. Check each one can be connected before you shortlist.
5. What is your realistic implementation budget?
Why it matters: Putting in an ERP always costs more than the software licence. Set-up, moving your data and training often cost more than the first year of licences.
Guidance: Costs vary widely depending on the size of the business, how many systems are involved and how much needs to be custom-built. Get written quotes covering licences, set-up, moving your data, training and the first year of support before you sign anything.
6. Who will own the ERP internally?
Why it matters: ERPs that nobody owns fail. Someone needs to be responsible for keeping the data clean, getting staff to use it, making sure processes are followed, and working with the implementation partner.
Guidance: Ideally a senior operations or finance person with the authority to make people follow the new processes. If nobody in your business can own it, allow for ongoing outside support.
7. What is your tolerance for disruption during implementation?
Why it matters: Changing your ERP disrupts the business. Some businesses can switch everything over at once; others need to change in stages, which takes longer but causes less disruption.
Guidance: If you are in a busy growth phase, plan to change in stages. If you have a natural quiet period (Christmas shutdown, end of financial year), you may be able to do more at once.
What an ERP Costs
The cost of an ERP is made up of software licences, set-up (implementation), moving your data, training, and ongoing support. The vendors publish their licence prices (see above), but the rest depends on the size of the business, how many systems are involved and how much needs to be custom-built. Set-up is usually the biggest single cost, and the one most often underestimated.
Ask every vendor or partner for a written quote that covers all five, not just the licence. As a starting point, here is the kind of system that usually fits each business size:
$2-5M Revenue (10-20 staff)
Recommended: MYOB Advanced, or Xero with a well-chosen set of add-ons
$5-10M Revenue (20-50 staff)
Recommended: SAP Business One, MYOB Advanced, or NetSuite
$10-20M Revenue (50-100 staff)
Recommended: NetSuite, SAP Business One, or Pronto Xi (manufacturing)
Implementation Timeline and Risks
ERP projects often run over budget and over time. The main risks for Australian businesses:
- The project keeps growing (most common): "While we are at it, can we also..." can add a lot to the cost. Agree the scope before you start and save extra ideas for a second stage
- Poor data quality: Moving messy data into a new system just gives you a new mess. Allow proper time to clean your data before it moves
- Not enough training: A quick demo is not training. Budget for hands-on training, written guides for staff, and extra support in the weeks after you switch over
- Nobody inside driving it: Without a senior person pushing it inside the business, staff drift back to the old way of doing things
- The wrong implementation partner: The partner matters more than the software. A great partner can make average software work; a poor one can ruin great software
What Affects How Long It Takes
- Xero + add-ons: the quickest, because it is not a true ERP project
- How many sites and staff: more of either means more set-up and training
- How many other systems connect: each connection has to be built and tested
- How much history you bring across: more years of data means more cleaning and checking
- How much custom work: the more you stick to the standard system, the quicker it goes
The Selection Process That Works
These steps help you choose and put in an ERP without the usual pitfalls:
- Work out what you need: Write down how things work now, what goes wrong, and what the new system must do. Involve finance, operations, sales and the warehouse.
- Make a shortlist: Based on what you need, narrow it to two or three options. Seeing more than three just makes the decision harder.
- Run structured demos: Give each vendor the same scenarios to show you. Use your own data and processes, not their prepared demo.
- Check references: Talk to two or three existing customers of a similar size and industry. Ask how the set-up went, not just about features.
- Check the partner: Look at the implementation partner as carefully as the software. They will be working in your business for months.
- Decide and sign: Ask for a fixed or capped price for the set-up. Put the scope, timeline and what counts as success in writing.
For more on putting in an ERP, visit our ERP implementation services page or read our ERP implementation FAQ for Australian businesses.
Need Help Choosing an ERP?
We are independent ERP consultants. We help Australian businesses choose, set up and improve ERP systems, without the bias of selling a particular product. Send us a message about your current systems and what you need, and we will set up a free initial chat.