Choosing an ERP system is one of the most expensive and consequential technology decisions an Australian SME will make. Get it right and you unlock growth, efficiency, and visibility. Get it wrong and you have spent $50,000-$200,000 on software that nobody uses, that does not fit your processes, and that you will be stuck with for the next 5-10 years. This guide helps you get it right.
Do You Actually Need an ERP?
Before comparing systems, confirm that you actually need one. An ERP (Enterprise Resource Planning) system integrates your core business processes — finance, operations, inventory, HR, CRM — into a single platform. You need an ERP when:
- You have outgrown Xero/MYOB Essentials and need integrated operations management
- Data lives in 5+ disconnected systems (accounting, CRM, inventory, project management)
- Staff spend significant time re-entering data between systems
- Management reports require pulling from multiple sources and are always out of date
- You are growing and current systems cannot scale with you
If your needs are simpler — just better CRM, or just better inventory management — you may be better served by a best-of-breed tool integrated with Xero, rather than a full ERP. An ERP is a significant investment and only makes sense when you need the integration across multiple business functions.
ERP Options for Australian SMEs
Here are the main ERP platforms that make sense for Australian businesses in the $2-20M revenue range. 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, massive ecosystem of 1,000+ add-on apps, excellent bank feeds
Weaknesses: Not a true ERP. Limited inventory, no manufacturing, reporting maxes out quickly
Australian support: Excellent — headquartered in Melbourne
Verdict: Perfect starting point but most businesses outgrow it by $2-3M revenue
MYOB Advanced (Acumatica)
Best for: Small to mid-sized businesses ($2M-$10M revenue)
Pricing: $200-$800/month depending on modules, plus $15,000-$50,000 implementation
Strengths: True cloud ERP, strong Australian compliance (GST, STP, PAYG), good inventory and project modules
Weaknesses: Interface feels dated compared to newer platforms, smaller partner network than SAP or NetSuite
Australian support: Very good — MYOB is Australian-owned with local support teams
Verdict: Solid choice for Australian businesses wanting a proper ERP without enterprise pricing
SAP Business One
Best for: Mid-sized businesses ($5M-$20M revenue)
Pricing: $150-$250/user/month cloud, or $3,500/user perpetual licence, plus $50,000-$150,000 implementation
Strengths: Deep functionality, excellent manufacturing and distribution modules, strong customisation, trusted brand
Weaknesses: Complex to implement, requires experienced partner, higher total cost of ownership
Australian support: Good — multiple certified partners across Australia
Verdict: Best for complex businesses that need deep operational control and plan to scale significantly
Oracle NetSuite
Best for: Mid to large businesses ($10M-$50M+ revenue)
Pricing: $999+/month base + $99-$199/user/month, plus $40,000-$120,000 implementation
Strengths: True cloud-native, excellent financials, multi-entity/multi-currency, strong ecosystem
Weaknesses: Expensive for smaller businesses, complex pricing, can be overkill for simple operations
Australian support: Good — Oracle has Australian offices but most partners are mid-tier firms
Verdict: Best for high-growth businesses planning to scale past $20M or those with multi-entity complexity
Pronto Xi
Best for: Manufacturing and distribution businesses ($5M-$30M revenue)
Pricing: Custom pricing, typically $50,000-$200,000+ implementation plus ongoing licences
Strengths: Purpose-built for Australian manufacturing and distribution, excellent shop floor and warehouse management
Weaknesses: Smaller vendor, less innovation pace than cloud-native competitors, limited outside AU/NZ
Australian support: Excellent — Australian-developed with dedicated local support
Verdict: Best for Australian manufacturers who need deep industry-specific functionality
For a focused comparison of two popular mid-market options, read our MYOB Advanced vs NetSuite comparison.
7 Questions to Ask Before Choosing
Before you start vendor demos, work through these seven questions. They will narrow your shortlist and prevent expensive mistakes.
1. What is your current annual revenue and 3-year growth target?
Why it matters: This determines the class of ERP you need. Buying too small means migrating again in 2 years. Buying too big means paying for features you will never use.
Guidance: Under $2M: Xero + add-ons. $2-5M: MYOB Advanced or lightweight ERP. $5-20M: SAP Business One, MYOB Advanced, or NetSuite. $20M+: NetSuite or enterprise solutions.
2. How many concurrent users need access?
Why it matters: Per-user pricing adds up fast. 5 users at $200/month is manageable. 50 users at $200/month is $120,000/year in licences alone.
Guidance: Count everyone who needs daily access, not just finance. Include warehouse staff, sales, project managers. This number often surprises businesses.
3. What industry-specific requirements do you have?
Why it matters: Generic ERPs handle 80% of business needs well. The remaining 20% (manufacturing BOMs, construction job costing, professional services time billing) often determines the right choice.
Guidance: List your industry-specific processes. If they are critical, choose an ERP with native support rather than relying on customisation.
4. What systems does the ERP need to integrate with?
Why it matters: Integration capability varies dramatically between ERPs. Some have native connectors for common tools; others require custom development.
Guidance: List every system: e-commerce platform, CRM, POS, warehouse management, payroll, banking. Check integration availability before shortlisting.
5. What is your realistic implementation budget?
Why it matters: ERP implementation always costs more than the software licence. A good rule of thumb: implementation costs 1-3x the first year of software licences.
Guidance: $2-5M business: budget $30,000-$80,000 total first year. $5-10M business: budget $60,000-$180,000. $10-20M business: budget $100,000-$350,000.
6. Who will own the ERP internally?
Why it matters: ERPs without internal ownership fail. Someone needs to be responsible for data quality, user adoption, process compliance, and working with the implementation partner.
Guidance: Ideally a senior operations or finance person with authority to enforce processes. If nobody in your business can own this, factor in ongoing consulting support.
7. What is your tolerance for disruption during implementation?
Why it matters: ERP implementation disrupts operations. Some businesses can handle a big-bang cutover; others need a phased approach that takes longer but causes less disruption.
Guidance: If you are in a busy growth phase, plan for phased implementation (6-12 months). If you have a natural quiet period (Christmas shutdown, end of financial year), consider a more concentrated approach.
Budget Guide by Business Size
ERP costs include software licences, implementation, data migration, training, and ongoing support. Here is what to budget based on your business size:
$2-5M Revenue (10-20 staff)
Software: $5,000-$15,000/year
Implementation: $15,000-$50,000
Training: $3,000-$8,000
First year total: $23,000-$73,000
Ongoing annual: $8,000-$20,000/year
Recommended: MYOB Advanced or Xero + robust add-on stack
$5-10M Revenue (20-50 staff)
Software: $15,000-$40,000/year
Implementation: $40,000-$120,000
Training: $8,000-$20,000
First year total: $63,000-$180,000
Ongoing annual: $20,000-$50,000/year
Recommended: SAP Business One, MYOB Advanced, or NetSuite
$10-20M Revenue (50-100 staff)
Software: $30,000-$80,000/year
Implementation: $80,000-$250,000
Training: $15,000-$40,000
First year total: $125,000-$370,000
Ongoing annual: $40,000-$100,000/year
Recommended: NetSuite, SAP Business One, or Pronto Xi (manufacturing)
Implementation Timeline and Risks
ERP implementations fail more often than they succeed. Industry research suggests 55-75% of ERP projects exceed their budget and timeline. The main risks for Australian SMEs:
- Scope creep (most common): "While we are at it, can we also..." adds 30-100% to project cost. Define scope before starting and resist additions until Phase 2
- Poor data quality: Migrating dirty data into a new system just creates a new mess faster. Budget 2-4 weeks for data cleaning before migration
- Inadequate training: A 2-hour demo is not training. Budget for hands-on training sessions, user documentation, and 2-4 weeks of intensive post-go-live support
- No internal champion: Without a senior person driving adoption internally, staff revert to old methods within weeks
- Wrong implementation partner: The partner matters more than the software. A great partner can make average software work; a poor partner can ruin great software
Typical Implementation Timelines
- Xero + add-ons: 2-6 weeks (not a true ERP implementation)
- MYOB Advanced (basic): 8-16 weeks
- SAP Business One: 12-24 weeks
- NetSuite: 12-20 weeks
- Pronto Xi: 16-30 weeks
The Selection Process That Works
Follow this process to select and implement an ERP without the common disasters:
- Requirements gathering (2-3 weeks): Document your current processes, pain points, and must-have requirements. Involve finance, operations, sales, and warehouse.
- Shortlist (1 week): Based on requirements, narrow to 2-3 options. Do not demo more than 3 — it creates analysis paralysis.
- Structured demos (2-3 weeks): Give each vendor the same scenarios to demonstrate. Use your actual data and processes, not their demo scripts.
- Reference checks (1 week): Talk to 2-3 existing customers of similar size and industry. Ask about implementation experience, not just features.
- Partner evaluation (1 week): Evaluate the implementation partner as carefully as the software. They will spend 3-12 months in your business.
- Decision and contracting (1-2 weeks): Negotiate fixed-price or capped implementation. Define scope, timeline, and success criteria in writing.
For more details on ERP implementation best practices, visit our ERP implementation services page or read our ERP implementation FAQ for Australian businesses.
Need Help Choosing an ERP?
We are vendor-independent ERP consultants. We help Australian SMEs select, implement, and optimise ERP systems without the bias of selling a particular product. Start with a free assessment of your current systems and requirements.