Navigating ERP Upgrade: A Step-by-Step Guide to a Successful ERP Migration

Upgrading your ERP system is a crucial move for business efficiency, but poor execution can lead to costly failures. This guide walks you through a successful ERP upgrade, covering data migration, AP automation, and best practices. Learn how to avoid common pitfalls, integrate finance automation, and ensure compliance with cutting-edge solutions like Kefron AP for seamless system transitions.

What is ERP?

Enterprise Resource Planning (ERP) refers to a type of software that helps organisations manage and integrate core business functions. These functions include finance, human resources, supply chain, procurement, and customer relations. An ERP system provides a centralised database that allows departments to share information and make informed decisions efficiently.

What is an ERP Upgrade?

An ERP upgrade involves updating or replacing an existing ERP system to enhance performance, improve security, and integrate new automation tools. Businesses upgrade their ERP systems to keep pace with technological advancements, regulatory requirements, and operational efficiency improvements.

According to a study by Panorama Consulting, 67% of ERP implementations result in operational disruptions due to poor planning, while 93% of businesses state that ERP projects succeed only if they significantly improve business performance.

Why Companies Consider an ERP Upgrade

Businesses upgrade their ERP systems for various reasons, including:

• Scalability: As companies grow, their ERP systems must accommodate larger transaction volumes and AP automation features.
• Regulatory Compliance: businesses need ERP solutions that comply with financial and tax regulations.
• Integration Needs: Older ERPs often struggle to integrate with modern invoice processing and AP automation tools.
• Performance Issues: A slow or outdated ERP can create inefficiencies, increasing the time spent on manual processes.

Key Steps in Planning an ERP Upgrade

Assess Your Current ERP System

Before upgrading, businesses should assess their existing ERP system, identifying gaps and inefficiencies. Key areas to evaluate include outdated features, compliance gaps, and integration capabilities with finance automation and AP automation tools.

Choose the Right ERP Solution

Selecting an ERP system that aligns with business objectives is crucial. Cloud ERP solutions offer scalability, lower costs, and remote access, whereas on-premises solutions provide greater control. It is essential to ensure ERP integration with AP automation and invoice processing solutions and opt for an intuitive user interface to ease adoption.

Data Migration and Management

Data migration is one of the most complex aspects of an ERP change. According to Gartner, 50-75% of ERP projects fail due to data migration challenges. To ensure a smooth transition, businesses should conduct a data audit, use automated validation tools, and work with ERP vendors that provide seamless data migration support.

Employee Training and Change Management

Deloitte reports that 38% of ERP failures result from poor user adoption. Training workshops, hands-on testing, and ongoing technical support post-implementation are key strategies for success.

How AP Automation Enhances ERP Migration

Accounts Payable (AP) automation is a crucial component of modern finance operations. Integrating AP automation into an ERP upgrade can result in:

• Faster Invoice Processing: Automating approvals reduces delays.
• Cost Reduction: Reducing manual processes lowers operational costs.
• Improved Compliance: Automated records ensure tax and audit compliance.
• Better Supplier Relationships: Faster payments enhance supplier trust.

When Should You Implement AP Automation?

Timing the implementation of AP automation plays a crucial role in ensuring a successful ERP upgrade. Companies need to evaluate their finance automation strategies and align them with the ERP transition phase for maximum efficiency.

Before an ERP Upgrade

Implementing AP automation before an ERP upgrade ensures a seamless transition by allowing businesses to clean up financial data, standardise invoice processing workflows, and improve overall data accuracy. Having an AP automation system in place beforehand helps reduce manual entry errors and ensures that financial data migrated into the new ERP system is clean and structured. It also allows finance teams to familiarise themselves with automation tools, enabling a smoother transition into the upgraded ERP environment.

During an ERP Upgrade

Many businesses opt to implement AP automation alongside their ERP migration to integrate AP workflows into the new system from day one. This approach minimises disruptions and reduces the risk of misalignment between finance and operations. When AP automation is introduced during the ERP upgrade process, it ensures that invoice processing and approval workflows are aligned with the new ERP framework, reducing the need for future adjustments. Additionally, finance teams can train on both systems simultaneously, streamlining the onboarding process and improving user adoption.

After an ERP Upgrade

Some companies prefer to roll out AP automation after the ERP upgrade is fully implemented. This approach allows organisations to focus on stabilising the new ERP system before integrating additional automation tools. However, delaying AP automation may result in continued reliance on manual processes, leading to inefficiencies and data inconsistencies. Businesses that wait to implement AP automation post-upgrade should ensure they have a clear roadmap for integrating finance automation features without disrupting financial workflows.

The Role of Kefron AP in ERP Migrations

What is Kefron AP?

Kefron AP is a purpose-built AP automation solution that helps businesses streamline invoice processing and financial workflows, ensuring a smoother transition during an ERP upgrade. It eliminates manual work, enhances financial visibility, and improves accuracy while integrating seamlessly with ERP systems.

How Kefron AP Supports ERP Migration

• Seamless Integration: Kefron AP integrates effortlessly with new ERP systems, ensuring minimal disruption during ERP migration.
• High Data Accuracy: It leverages AI-powered automation to achieve 99.99% data accuracy, reducing errors caused by manual entry.
• Faster Invoice Processing: Automation ensures that invoices are captured, processed, and approved swiftly, reducing payment delays.
• Improved Visibility & Control: Finance teams benefit from real-time tracking of invoices, approvals, and payments, improving financial oversight.
• Compliance & Risk Reduction: With built-in compliance features, Kefron AP helps businesses align with financial regulations, such as e-invoicing and tax reporting.
• Cost Efficiency: Reducing manual processing lowers operational costs while optimising cash flow.

Key Benefits of Using Kefron AP During ERP Change

• Automated Invoice Capture: Uses AI-driven recognition to extract invoice data accurately.
• Custom Approval Workflows: Ensures invoice approvals align with business policies and compliance needs.
• Real-time Financial Tracking: Offers dashboards for monitoring invoice statuses and payments.
• Reduces Manual Workarounds: Eliminates inefficiencies caused by ERP transition delays.
• Future-Proofs Financial Operations: Helps businesses build scalable, efficient finance workflows as they transition to a modern ERP system.

How Kefron AP Streamlined ERP Migration – Success Story

A healthcare provider, Gold Care Homes, successfully transitioned from Sage 50 to Sage Intacct while integrating Kefron AP, ensuring a smooth and efficient ERP upgrade.

By implementing Kefron AP, Gold Care Homes achieved:

• 87.5% faster invoice processing, significantly reducing administrative workload.
• £32,000 in annual cost savings by eliminating manual AP tasks and inefficiencies.
• A seamless ERP migration with zero operational disruptions, ensuring business continuity.

The adoption of Kefron AP allowed Gold Care Homes to automate financial workflows, improve compliance, and gain real-time visibility into invoice processing. This transition not only optimised their accounts payable function but also positioned them for scalable financial growth.

Common ERP Migration Challenges and Solutions

1. Data Integrity Issues

Poor data quality can disrupt an ERP upgrade. Implementing data validation and cleansing tools ensures smoother migration.

2. Integration Difficulties

ERP systems must integrate with finance automation tools. Businesses should:

• Choose ERP systems with API compatibility.
• Work with ERP vendors that support seamless integrations.

3. Cost Overruns

Panorama Consulting found that 30% of ERP projects exceed budget due to underestimating integration costs. To manage expenses:

• Prioritise essential automation features.
• Set up a contingency budget.
• Optimise the implementation timeline to reduce costs.

Conclusion: Future-Proof Your Business with an ERP Upgrade

Upgrading your ERP system is not just about adopting new technology; it’s about transforming your business operations to enhance efficiency, compliance, and financial accuracy. A well-executed ERP upgrade ensures seamless integration, real-time financial visibility, and long-term cost savings. However, without AP automation, businesses may face inefficiencies, manual bottlenecks, and data discrepancies.

By integrating Kefron AP into your ERP migration strategy, organisations can:

• Automate and streamline invoice processing, reducing administrative burden.
• Ensure accuracy and compliance, preventing costly errors and regulatory risks.
• Enhance visibility into financial data, improving cash flow management and decision-making.
• Minimise disruptions during ERP transition, maintaining seamless operations.

The success of an ERP upgrade depends on selecting the right AP automation tools, training teams effectively, and ensuring a smooth data migration process. By leveraging Kefron AP, businesses can optimise their finance automation efforts, future-proof their operations, and position themselves for scalable growth in an increasingly digital financial landscape.

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Author: James Smith 

James is responsible for delivering Kefron’s flagship software service Kefron AP. He is heavily involved in automating accounts payable finance projects to increase productivity and reduce costs. With 21 years of experience in scoping complex system solutions, James has seen ‘the good, the bad, and the ugly’ of change management and technology projects.