Six Reasons to Upgrade Your Accounting Software

Enterprise resource planning (ERP) systems were once expected to last a decade, but longevity is no longer the measure of success. Upgrading your accounting software is a strategic decision, not just a technical one. When performance declines, security becomes outdated, or software fails to support strategic objectives, modernization becomes a business imperative.

If your accounting or ERP system is slowing you down or exposing your business to risk, it’s time to consider an ERP upgrade. An ERP upgrade is the process of replacing an outdated or unsupported system with a newer version. While the average lifespan for an ERP system is often cited as five to 10 years, the actual decision should be based on several critical signs, rather than just age.

Modernizing your ERP can help your organization adapt, stay secure, and support growth. Delaying modernization can increase remediation costs and elevate the risk of disruption. Recognizing the signs for when to upgrade your accounting software and acting decisively is key to maintaining competitiveness.

Six Signs It’s Time for an ERP Upgrade

Upgrading your accounting software is a strategic decision. If your ERP system is slowing you down or exposing your business to risk, it’s time to consider an upgrade. Here are six critical indicators:

Performance & Reliability Are Breaking Down

Slow performance: Frequent slowdowns, long loading times, or lag when processing transactions or generating reports.
Frequent crashes or downtime: The system is unreliable and requires constant maintenance or troubleshooting.
High maintenance costs: Aging systems demand costly patches, support, and specialized IT resources.
Lack of vendor support: Your system or version is no longer supported with updates or new features.

The System Has Become a Liability

Beyond intended lifespan: With our clients, many ERP systems are over 10 years old, which may be twice their intended lifespan.
Security risks: Older systems lack modern security features, putting accumulated data at risk.
Excessive maintenance costs: Server upkeep, patching, and custom integrations become financially burdensome.

Technology & Security Are Outdated

Integration challenges: The ERP doesn’t support modern tools like artificial intelligence (AI), customer relationship management (CRM), or e-commerce platforms.
Security vulnerabilities: Missing features like multi-factor authentication (MFA) or advanced encryption.
Compliance concerns: Difficulty meeting evolving regulations such as accounting standards or data privacy laws.

Business Needs Have Outgrown the System

Inability to scale: The system struggles with increased transactions, users, or geographic expansion.
Limited visibility: Real-time reporting and analytics are missing, leading to poor decisions and data silos.
Inefficient processes: Manual workarounds and spreadsheets fill gaps left by outdated workflows.
Poor user experience: Clunky user interface (UI) and lack of mobile access frustrate users and reduce productivity.

The System Can’t Support AI

No cloud access: On-premises systems can be slower, less secure, and less accurate.
Automation gaps: Manual processes persist where streamlined workflows should exist.
No AI integration: Legacy systems can’t support autonomous agents for tasks like reconciliation or order processing.

Functionality Is Too Basic

Limited capabilities: The ERP only handles basic accounting and lacks advanced features needed for growth.
No new integrations: Absence of application programming interfaces (APIs) limits connection with payroll, CRM, and inventory systems.

Why ERP Modernization Matters

ERP modernization is essential for maintaining agility and competitiveness. As organizations outgrow legacy systems, the risks of inefficiency, security vulnerabilities, and compliance gaps increase. To be competitive, modernizing your ERP isn’t optional. It’s an essential step toward future-proofing your organization and unlocking new opportunities for business transformation.

Reasons to Act Now

Category	Indicators
Performance	Frequent crashes, slow response times, or inability to handle increased data volume.
Growth	The system can’t keep up with your growth, handle increased transactions, or support new business needs.
Data & Processes	Reliance on disparate systems that don’t communicate, leading to manual processes and a lag in financial reporting.
User Experience	A user interface that is slow and not user-friendly, or presents difficulty onboarding new employees.
End-of-Life	The technology provider no longer supports your system or version.

Case Studies

The following case studies show how organizations have used ERP upgrades to solve real business challenges. Each example highlights the practical benefits of modernizing your accounting software, from improved compliance to faster reporting and informed decision making.

ERP Upgrade for Audit-Ready Financials

Challenge: A precious metals firm using QuickBooks faced audit challenges and lacked internal controls needed for industry accreditation.

Approach: Migrated to Microsoft Dynamics 365 Business Central for scalable, cloud-based accounting with robust controls and integration.

Impact: Achieved audit readiness, improved financial transparency, and positioned the company for continued growth.

Why It Matters: QuickBooks couldn’t meet evolving compliance and control needs, while Business Central delivered enterprise-grade functionality and flexibility.

Real Estate Firm Accelerates Monthly Close

Challenge: A real estate company grew from 150 to 22,000 agents in 12 years, overwhelming its legacy accounting system with thousands of transactions.

Approach: Implemented custom automation workflows integrated with a modern ERP platform to streamline financial reporting.

Impact: Gained 10 days per month for higher-value tasks by expediting monthly close processes.

Why It Matters: Legacy systems couldn’t scale with growth or support real-time reporting; modern ERP enabled strategic transformation.

AP Automation for Invoice Processing

Challenge: Manual invoice review and approval created bottlenecks and compliance risks.

Approach: Used Power Automate and AI-driven invoice models to extract data, route approvals via Teams, and update metadata in SharePoint.

Impact: Reduced processing time, improved accuracy, and enabled real-time visibility into accounts payable (AP) workflows.

Why It Matters: Outdated systems lacked automation and integration; modern ERP tools eliminated manual workarounds and improved compliance.

Mobile Purchase Requisition With Sage Intacct

Challenge: Field teams struggled to submit purchase requests due to a lack of mobile access and ERP integration.

Approach: Built a mobile app using Power Apps and Power Automate to capture requisition data and push it directly into Sage Intacct.

Impact: Enabled real-time submission and tracking of purchase requests, improving procurement speed and accuracy.

Why It Matters: Legacy ERP lacked mobile capabilities; modern cloud-native ERP empowered users and streamlined operations.

Strategic Questions for CIOs

Before signing an ERP contract, chief information officers (CIOs) should consider the strategic questions below to avoid costly missteps. These questions go beyond features and pricing to address implementation, change management, and long-term viability:

Change Management Budget

What percentage of the total project budget is allocated specifically to change management and training, and who owns that budget?
Why It Matters: Poor change management can cause ERP failure.

Internal Resource Allocation

Which of our full-time employees will be dedicated to this project at a high capacity, and what are we taking off their plate to make room?
Why It Matters: Effective ERP delivery relies on dedicated internal team members with bandwidth to focus on the project.

Vendor Post-Go-Live Support

What specifically happens on day 91 after go-live when our 90-day hypercare period ends? Are managed services available?
Why It Matters: Post-go-live support is critical for stabilization.

Additional questions to consider:

How will data be migrated and integrated with other systems?
What is the realistic implementation timeline and scope control process?
What costs are not included in the proposal?
What is the vendor’s product road map?

Industry Lifespan Trends

ERP systems are typically expected to last between five and upwards of 10 years. However, many organizations continue using platforms well beyond 10 years, increasing risk and limiting agility. Based on our experience and research, the average ERP lifespan also varies by industry.

Industry	Average ERP Lifespan
Manufacturing	7–12 years
Healthcare	7–10 years
Technology	4–10 years
Professional Services	5–8 years
Retail & E-Commerce	5–8 years

Several factors influence how long an ERP stays in service, such as industry requirements, company size, regulatory environment, and technological advancements. Here’s a closer look at industry examples:

Manufacturing (with inventory and supply chain needs): Manufacturers were early adopters of ERP and have historically upgraded in roughly 10-year cycles, though this varies. Critically, manufacturing firms cannot tolerate systems that hinder throughput or visibility. If an ERP can’t keep up with real-time production and inventory management, it gets replaced. Data shows manufacturers and distributors currently lead the pack in ERP replacements.1 Drivers include the push for advanced capabilities (IoT integration on the factory floor, smarter supply chain planning, etc.) and vendor support timelines. Notably, manufacturing companies also invest in incremental upgrades; even if they don’t do a full replacement, they often perform major version upgrades or add-on implementations every few years to stay current. This industry shows a faster upgrade tempo than others. Many companies budget for updates on shorter cycles to maintain competitive operations.
Healthcare (hospitals, health systems, etc.): Healthcare providers tend to be conservative in ERP replacement, often keeping systems for about a decade. Frequent reasons include the high stakes of disruption (such as patient care and billing) and strict data regulations (including HIPAA) that can make change seem daunting. As a result, many healthcare organizations have older ERP systems. However, this is changing. New compliance requirements and security concerns are now major triggers for ERP upgrades in healthcare. One 2025 industry outlook found only 31% of healthcare respondents felt “very prepared” for rising compliance challenges, pushing CIOs to seek more modern solutions.2 In practice, healthcare organizations replacing an ERP today are often coming off a 12-year-old system. They are moving to cloud-based or modern ERP platforms to improve data security, integrate with electronic health records, and meet audit requirements.
Technology (software and SaaS companies with subscription billing): Tech companies often have unique financial models (subscription billing, recurring revenue tracking) that can be challenging to manage in older ERP systems. Many start out using lighter-weight systems, e.g., QuickBooks plus manual processes, and only implement a robust ERP platform as they scale. Further, tech firms tend to favor cloud-based systems that are continually updated by the vendor. For example, if they’re on an ERP like NetSuite, Sage Intacct, or Workday, they receive ongoing updates and may not need a full reimplementation as frequently. That said, fast-growing tech companies will replace systems that can’t scale. A startup might outgrow an entry-level accounting system within four years and move to a modern cloud ERP. Established tech firms expect their ERP to provide cloud-based updates and scale as they grow. In general, tech companies’ ERPs have variable lifespans. A five- to seven-year replacement cycle isn’t uncommon for high-growth companies, though mature tech firms might keep a cloud ERP system for closer to a decade.

Modern cloud-based ERP platforms provide continual updates and scalability, helping organizations avoid the weaknesses of aging systems.

How Forvis Mazars Can Help

If your ERP system is causing bottlenecks, limiting growth, or exposing your business to risk, it’s time to consider an upgrade or replacement. By understanding the key indicators for when to upgrade your accounting software, you can make an informed decision. Delaying an upgrade often results in higher costs from lost productivity, operational inefficiencies, and increased security risks. These costs can quickly exceed the investment required for a modern ERP system.

In summary, an ERP upgrade is essential for modernizing your business. It can transform your accounting setup from a passive system of record into a strategic system of action that is secure, scalable, and ready for future technologies like AI and autonomous agents.

Ready to future-proof your finance operations? Connect with Business Technology Services at Forvis Mazars to explore ERP modernization options tailored to your business needs.

Business Technology Services at Forvis Mazars has certified partnerships with Microsoft, Oracle NetSuite, and Sage.

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