We’re Ellen and Simone. After 36 years in finance, we’re ready to share what textbooks won’t tell you.

💛 Welcome to The CFO Playbook – your practical guide to real-world finance insights. A bi-weekly newsletter we’ll send out every other Thursday. The full read will take approximately 5 minutes. If you’re enjoying the newsletter, we’d greatly appreciate it if you shared it using the “Share the Newsletter” button at the end of this email.

📖 READ OF THE WEEK

^{Quick note: Ellen is currently on parental leave, so this ERP edition is brought to you by Simone.}

In this edition, we cover:

• Lessons from own ERP rollouts: Some smoother than others

• Expert insights from MacroFin, an ERP partner with 160+ successful NetSuite projects

ERP: Three letters that stand for Enterprise Resource Planning

An ERP system helps businesses manage and connect key processes like inventory, invoicing, accounting, HR, and even CRM (Customer Relationship Management) in one place. It acts as the backbone of operations, ensuring everything runs smoothly and teams work with the same data.

Companies usually consider an ERP when manual processes become too slow, existing systems don’t work well together, or expansion into new markets creates more complexity.

When done right, an ERP improves efficiency and clarity across the business. If implemented poorly, it can become an expensive tool that’s hard to use and causes data issues. Choosing the right system and implementation partner at the right time is essential.

The Big Myth: ERP Is Dead

ERP isn’t dead. But smart companies don’t rely on it alone. They create a modern finance stack by pairing core ERP functionalities with specialized best-of-breed tools to enhance efficiency and flexibility.

Example of a Modern Finance Stack:

• Core ERP (e.g. NetSuite): Accounting, consolidation, and financial reporting.

• Add-ons for efficiency:

  • AP Automation, OCR: Moss, Pleo, Payhawk, Zone & Co

  • Procurement: Coupa, Pivot

  • Treasury: Atlar, Embat

  • Planning: Pigment, Adaptive

Pro Tip: Start with your core ERP and add tools as you grow, focusing on solving specific pain points. Avoid relying solely on ERP native tools, which often have outdated interfaces and rigid workflows. Modern SaaS tools provide better user experience and more automation.

Spoiler: Stay tuned for more newsletters on the ideal tech stack coming in early 2025

My First ERP Project: What Went Wrong

My first ERP implementation taught me some hard lessons. Despite good intentions, our decisions made the project more challenging than it needed to be.

• Trying to Do Everything at Once: We rolled out every module - from procurement to expense management - all at once thinking it was the best approach to manage everything within a single ERP system. Poor user adoption proved otherwise. Today, I focus on phased rollouts with best-of-breed tools.

• Overcomplicating Customization: We added 10 custom fields for reporting, hoping for more granular insights. Instead, it overwhelmed accountants, and the reports went unused. Lesson learned: keep it simple.

• Underestimating Costs and Resources: We managed the project alongside daily finance tasks without a dedicated lead. This stretched the team thin and delayed progress.

• Choosing the Wrong Fit: We selected Oracle Fusion, inspired by big U.S. companies, but soon realized we were acting as guinea pig in Germany, facing significant issues with local accounting and tax requirements.

What I learned for Future ERP Rollouts

• Start with Clean Data
  Reconcile balance sheets, organize AP/AR, and ensure audit readiness. Messy data is a top reason why migrations fail—an ERP won’t clean your data for you!

• Phased Rollout
  Rolling out everything at once is overwhelming. Start with core functions like AP, AR, GL, and payments. Add complex modules later for smoother adoption.

• Streamline Customization
  Stick to essentials: a clean chart of accounts, lean cost centers, and only necessary custom fields. Too much customization adds complexity without real value.

• Dedicated Project Lead
  Assign a Process and Systems Architect (maybe you remember Louisa from our “Perfect Finance Team Setup” edition) if you have the luxury of such a role. Alternatively, choose someone who knows the company deeply and free them from 60% of their daily tasks for 2-3 months to focus entirely on the project. Timing is key: Avoid starting during audits or funding rounds!

• Choose the Right System
  Selecting the right ERP is critical, as it’s rarely replaced once implemented. Here are some common options:

  

• NetSuite: Strong API integrations, ideal for mid sized companies with up to ~1k employees. Comprehensive ERP for growing businesses, covering finance, CRM, inventory..

• Sage Intaact: Probably NetSuites biggest competitor. Financial-focused ERP for SMBs, known for strong reporting and simplicity.

• Odoo: Simple, cost-effective, and highly flexible—great for inventory workflows, but its flexibility can make long-term maintenance challenging.

• Workday: Combines HRIS (Human Resources Information Systems) with financial management, making it popular among fast-growing, multinational larger enterprise companies. 

• Microsoft Dynamics 365 Business Central: Good for companies already using Microsoft tools and looking for an affordable, user-friendly ERP. For companies with complex inventory management needs. Integrates well with Shopify.

  These examples are just the beginning. The ERP space is evolving rapidly, with new players building faster, simpler solutions. We’re keeping a close eye on the trends.

• Testing with Power Users
  Test key features, like expense management or procurement, with heavy users like your marketing team first. Their feedback ensures the system is intuitive and leads to a high adoption.

• Set Realistic Timelines
  Forget about year-long projects. Focused rollouts can succeed in 8-12 weeks. Ensure your team has the capacity to avoid delays, as clients are often the main blockers.

• Document Everything
  Detailed records make future updates, onboarding, and audits easier.

Start simple, move fast, scale later.

ERP Implementation: Real-World Insights with MacroFin

To make ERP implementation more tangible, we interviewed MacroFin, specialists behind over 160+ successful NetSuite implementations and a trusted partner I’ve personally collaborated with on two rollouts.

🤖 The Example Company in the Interview:

• Size: 200 employees

• Revenue: $15M ARR SaaS company

• Goal: Triple ARR and expand into new countries within a year

• Current Setup:

  • US entity on QuickBooks

  • German entity on DATEV

  • UK entity on Sage

  • Consolidation in Excel

• Challenges:

  • Manual consolidation

  • Foreign exchange complexities

  • External accountants managing bookkeeping in each country

  • Plan to in-house accounting operations

Q&A with MacroFin

Does the famous 70% ERP failure rate align with your experience?

MacroFin:
The 70% failure rate is often quoted, but it doesn’t reflect our experience.

Challenges typically arise from:

• Bad data: Companies implement ERPs with chaotic accounts receivable, payable, or balance sheets.

• Not being able to use the system: Either due to poor training or misaligned processes.

• Inadequate planning: Missing key requirements at go-live.

We've mitigated these challenges by leveraging our accounting and client-side implementation experience. To date, we’ve had no failures.

When should a company like this start considering ERP?

MacroFin:
ASAP. The plans to triple ARR and expand internationally mean added complexity in consolidation and reporting. NetSuite excels at multi-entity consolidation, which would alleviate current manual efforts.

Waiting until growth pressures peak puts the finance team under strain, making implementation harder. Starting now prevents future bottlenecks.

What are typical warning signs a company is outgrowing its current setup?

MacroFin:

• Consolidation issues: Manually combining multiple entities leads to errors and inefficiency.

• Billing problems: Scaling leads to billing mismatches or revenue leakage.

• Revenue recognition errors: Growth complicates revenue tracking.

• Lack of controls: Missing purchase order (PO) or approval workflows.Why do tool implementations often fail?

What’s the best approach for selecting an ERP?

MacroFin:
Skip the lengthy RFP (Request for Proposal) process. Instead, use a lighter, focused approach to guide ERP vendors with your key requirements for a successful implementation.

Issues with RFPs:

• Resource Overload: Often led by external contractors, who may overcomplicate the process.

• Extended Timelines: Adds unnecessary delays with minimal value.

• Overcomplication: Lengthy, unfocused documents can confuse vendors.

  • Example: A 30-page RFP with hundreds of unprioritized requirements often leads to wasted time and unclear demonstrations.

  • Mistakes in RFPs can result in incorrect estimates, causing good systems to be dismissed prematurely.

Real-World Example:

One client spent 18 months drafting an RFP and expected a 3-month implementation. Despite warnings about the unrealistic timeline, they refused to adjust their plan.

A better approach? Focus on key needs and ensure flexibility in the process.

What makes a successful implementation?

MacroFin:

Key Factors for Success:

• Team Structure: Internal resources are ideal as they retain institutional knowledge post-implementation.

• Single Point of Ownership: A finance team member who understands processes deeply should lead.

• Data Cleanliness: Use real, clean data for testing and go-live to avoid headaches later.

• Right Implementation Partner: Choose a partner experienced in your industry with strong project management skills.

"The majority of clients can follow NetSuite’s best practices with minimal customization. Focus customization efforts on critical processes, like revenue recognition."

What pitfalls should companies avoid?

MacroFin:

• Lack of requirements planning: Know your pain points and goals before meeting vendors.

• Under-resourcing: Implementations need dedicated time and effort.

• Unrealistic expectations: Accept that implementation will have challenges, but preparation is key.

What Should This Company Budget for ERP Implementation?

MacroFin:

For a company of this size:

• Implementation Costs: €70k - €90k

• Timeline: ~4-5 months, starting with core modules (e.g., finance, AP). Additional modules, such as billing or project management, can be implemented in subsequent phases. From customer quote to cash in the bank. A clean process means faster payments, fewer errors, and better cash flow.

Hidden costs to watch for?

MacroFin:
Budget for additional tools or automations that may arise post-implementation. For example, automating reporting processes that weren’t initially scoped. (Revenue to Cash)

🔮 Navigating AI: Your Finance GPS

The End of Prompt Engineering

While we've focused on perfecting our prompt engineering trading the best tips, Anthropic has released tools for Claude that largely automate this process. These purpose-built tools handle most common AI interactions more effectively than manual prompt crafting, making traditional prompt engineering unnecessary for all but the most specialized cases.

How does it work?

Step 1: Get Started

To get started, create an Anthropic account and access the Console (which requires some credits). Once logged in, you'll see the dashboard with the prompt generator and optimizer. So far, this feature is only available for corporate accounts and you will need to buy some credits for it.

Step 2: The “Mini”-Prompt

Type in some basic information about what you want to achieve. Example: You want to publish a LinkedIn post on your latest funding round based on a press release. You type in: “Generate a prompt for my LinkedIn page on our latest funding round based on this source document [document]. I am the CFO of company xyz. Create an engaging post for my personal LinkedIn profile as well as our company page.”

Step 3: Review & Test

You will get a quite long and detailed prompt. Review and test it. You can ofc also skip this step. Copy your prompt into Claude. GO!

You can also watch a short video here: Anthropic's Game-Changing 'Prompt Generator': Simplifying AI with Ease!

Why this is big

Now you probably wonder why you should use a “mini”-prompt to generate another prompt? It’s that simple: the prompt you will generate will be 10x better than whatever you can come up with. It’s like prompt engineering on steroids!

It will also save you time in chatting with Claude to refine your original prompt.

Still not convinced? JUST TRY IT!

Exciting News - How this new CoPilot feature let’s you speak 9 languages

Microsoft just announced an exciting leap forward: Starting in 2025, your Teams meetings won't need translators anymore. Your own voice can speak in 9 different languages including English, Mandarin, and German! This simplifies global collaboration by letting participants contribute in their native language, overcoming language barriers.

While this is super exciting, this comes with some risks that can’t be ignored: Just this year, cybercriminals staged a Teams meeting so convincing that they walked away with $25M. Voice cloning, while powerful, adds another layer of risk. Impersonation scams already topped $1B last year - without this technology.

Sources: Anthropic Console, Techcrunch

💼 JOB SECTION

We’re connecting companies with the right candidates based on key criteria

• Remote work

• Salary expectations from both sides

• Technical skill set match

• Career growth opportunities

Companies: Register here
Applicants: Register here

Let’s find your perfect match!

🕵️‍♀️ EASY QUESTIONS - DIFFICULT ANSWERS

READER QUESTION OF THE WEEK

How Can I Transition from Accounting to a CFO Role?

Question: I've been a Accountant specializing in consolidation, Audits and closing books for 5 years. While I enjoy my role, I worry the repetitive nature of financial close isn't building the right skills for a CFO position. How can I prepare for a CFO role?

Answer: Accounting is the foundation and an excellent starting point for a CFO role, but broader skills like strategy, top communications skills and leadership are essential. Interestingly, many FP&A professionals or ex-banker in CFO roles often struggle without deeper accounting expertise at some point.

The key is a mindset shift. While accounting emphasizes 100% correctness, a CFO must focus on the bigger picture and strategic decisions. They can’t get bogged down in small issues like a €100 invoice error. Strategic thinking is what sets a CFO apart.

Move into Forward-Looking Finance Roles

• Explore FP&A especially financial modeling, or business partnering roles to shift from reporting to decision-making.

• Business partnering can be a great starting point, as you may already align actuals with team leads during the closing process. Build on that relationship to expand your role.

• Leverage your internal reputation: Transitioning internally is often easier than externally.

Tip: Take advantage of courses to upskill, such as those on Corporate Finance Institute (CFI), Udemy, The SaaS CFO

Understand the Business

• Study your company’s business model, unit economics, core KPIs and growth drivers.

• Show your CFO and CEO that you’re interested in the bigger picture: Not just the accounting details.

Build Relationships Across Teams

• Collaborate with teams like Marketing and Tech. Strong cross-functional relationships are essential.

Build Your Network

• Join finance communities and find a mentor. Networking is crucial for opportunities and advice.

• This approach has helped us tremendously. Having role models to provide guidance and practical advice during transitions made a significant difference. A strong network or mentor can help you do the same.

Action Steps

• Discuss your career goals with your CFO or direct manager.

• Take online courses to broaden your skills.

• Network, Network, Network

Got a burning question? Fill out this form

UPCOMING

• Finance Tech Stack

• Spend Management & FP&A Tools 2025 deep dive

• KPIs that really matter

CLOSING REMARKS

Thanks for reading! If you enjoyed this edition, feel free to share it with your network. 📮 

Send your feedback, suggestions, or requests to feature something in future editions to [email protected]. We’d love to include your input.

Follow us on LinkedIn for more updates!

The CFO Playbook reflects our personal opinions, not professional advice.