Why CFOs are prioritizing ERP upgrades in 2025

If your ERP still relies on manual processes, file uploads, spreadsheets, workarounds, or legacy architecture, it's time to upgrade.

2025 is proving to be a landmark year for finance modernization. A wave of CFOs are making major investments in their ERP systems, either upgrading existing infrastructure or shifting to cloud-native platforms that better support automation, agility, and global operations.

According to Gartner, CFOs are prioritizing investments in data, metrics and analytics to empower faster, smarter decision-making and reduce operational costs. BDO’s 2025 CFO Outlook Survey found that 60% of CFOs are increasing investment in AI adoption, and many are discovering that their legacy ERP can’t support that shift.

Let's look at why ERP modernization is rising to the top of CFO agendas, and what modern finance teams are gaining in return.

Raising the bar: CFO expectations are driving change

CFOs have long played a strategic role, but today they face growing pressure to deliver:

• Real-time financial insights to guide business decisions

• Operational efficiency and cost control in uncertain markets

• Scalable systems that support global operations, acquisitions, and compliance

Unfortunately, many legacy ERPs were built for stability, not agility. Modern ERPs aim to close the gap by offering:

• Instant visibility into financial performance across regions, departments, and timeframes

• Automation of core workflows, freeing up time for strategic work

• APIs and integrations that connect to a growing ecosystem of fintech tools

Why 2025 is the tipping point for ERP upgrades

Here are the top reasons CFOs are prioritizing ERP upgrades in 2025:

1. The demand for real-time reporting

Static month-end reports aren’t enough for many business.

• Agile decision-making requires access to live dashboards with customizable KPIs.

• Real-time reports help CFOs to catch warning signs early and be proactive.

• Real-time reporting enables you able to track working capital, cash flow, and liabilities against forecasts instead of waiting for a close cycle to be completed.

2. Automated financial workflows

Repetitive, manual processes waste time and increase the risk of error.

• Automation enables faster close cycles by reducing manual work and streamlining reconciliation processes, which in turn minimizes the risk of human error.

• Automated AP/AR processes allow invoices and payments to be processed without manual intervention, improving efficiency and accuracy.

• Automated systems also generate clearer, more consistent audit trails, making compliance easier to achieve and maintain.

3. Cloud-first architecture and scalability

Microsoft announced last year that they are retiring Great Plains, an on-premises ERP solution, and have been migrating users to Microsoft Dynamics 365 Business Central, a cloud solution. It's not just the platforms encouraging businesses to migrate their ERP systems into the cloud, CFOs are choosing to put their data in the cloud for a few reasons.

• Cloud-native ERP systems support distributed teams and remote finance operations by allowing secure access from anywhere, enabling real-time collaboration across geographies.

• They are built to scale quickly across markets, products, or regions, providing the flexibility finance leaders need to support business growth.

• Cloud based solutions deliver updates and improvements continuously, without requiring major IT resources or system downtime.

4. Embedded payments and FX

Historically processing an invoice and paying it has meant finance team must jump between platforms, moving data around with .csv files, which creates room for errors, inefficiency and security risks. Today you can expect payments and FX tools to be embedded into your ERP allowing you to complete the accounts payable process without leaving your ERP platform.

• Xe's embedded payments and FX solution supports both domestic and international payments, enabling finance teams to manage global transactions efficiently within a single platform.

• Xe provides real-time FX rates and automated currency conversions, helping companies minimize exposure to market fluctuations and improve accuracy in financial reporting.

• Built-in risk management tools further support CFOs in identifying and mitigating currency risk, fraud, and compliance issues before they impact the bottom line.

5. Preparing for AI

According to PwC, CFO Insights Hub, as of October 2024, “28% of finance departments are already using AI in forecasting”. In order to implement AI successfully you need clean, connected data. Building on a scalable cloud-based system ensures that finance data is accessible, accurate, and ready to power intelligent tools.

• AI relies on structured, reliable data. Building on a scalable cloud-based system ensures that finance data is accessible, accurate, and ready to power intelligent tools.

• Fragmented platforms lead to inconsistent data and visibility gaps. Consolidating systems helps unify financial information and enables meaningful insights.

• Connecting your ERP, payment systems, and reporting tools ensures that AI models draw from up-to-date, consistent data across the business.

• Once foundational systems are in place, finance teams can confidently implement AI-driven forecasting, scenario modeling, and risk detection.

What CFOs look for in a modern ERP stack

As finance leaders evaluate ERP upgrades, they’re focused on finding systems that deliver:

• Interoperability

  Seamless integration with banking, payroll, payments, and tax tools.

• Security and auditability

  Built-in controls, user permissions, and full audit trails.

• Global reach

  Native support for multi-currency, multi-entity, and tax compliance needs.

• User experience

  Interfaces that are intuitive, customizable, and reduce onboarding time.

The results: What ERP upgrades actually deliver

ERP modernization is delivering measurable results for CFOs and their teams:

• Shorter close cycles and improved reporting accuracy

• Improved visibility into cash flow and global accounts

• Lower costs through automation and reduced error rates

• Increased agility in responding to economic shifts or market opportunities

Perhaps most importantly, it enables the finance function to play a proactive, strategic role rather than a reactive, operational one.

Final thoughts: Upgrading your ERP is a strategic move

ERP upgrades were once viewed as purely technical initiatives managed by IT departments, but that perception has changed dramatically. ERP modernization is a critical lever for financial transformation, enabling better control, deeper insight, and operational resilience. With pressures mounting to automate processes, manage global operations, and harness AI, finance leaders are stepping up to own their tech stack and make it a priority.

Whether it’s embedded payments, automated workflows, or enabling AI, the modern ERP is becoming the engine room of finance. The CFOs that act now will be the ones best positioned to drive growth, control risk, and lead with insight.

The content within this blog post is not intended for use as financial advice. This content is for informational purposes only.