Why legacy ERP systems are failing SaaS companies in 2025

After more than two decades in the ERP space, I've witnessed firsthand the evolution, and often stagnation, of enterprise resource planning systems. My journey began at PeopleSoft, helping companies expand internationally, then continued through the years at NetSuite during its growth phase. As a CPA with a Master's in Accounting, I've seen the promise and the pitfalls of traditional ERP implementations.

Today, I'm compelled to share a different story, one about why the ERP solutions that worked a decade ago are now actively hindering growth in our new economic reality.

Why yesterday's solutions don't work today

The business climate has fundamentally shifted. What worked in 2015, or even 2020, isn't sufficient for today's challenges. SaaS companies face unprecedented pressure from investors demanding better margins, operational discipline, and scalable growth. In this environment, inefficiencies aren't just inconvenient, they're existential threats.

Consider the warning signs I see across finance teams:

• Bloated G&A expenses that destroy operational leverage

• Revenue leakage from spreadsheet errors, transposition mistakes, and system failures

• Manual processes that consume valuable resources and introduce risk

• Inflexible reporting that slows decision-making when agility is crucial

The root cause? Most companies are still running on ERP systems designed for a different era.  Approximately 73% of finance teams still rely on spreadsheets for critical processes according to Industry Reports.  They are rigid, clunky platforms that can't adapt to modern business models.

The legacy Trap: 5 signs you're stuck in the past

Over my career, I've identified clear indicators that an organization is trapped by outdated technology:

Manual Dependencies

When critical processes like forecasting, revenue recognition, or reconciliations rely on spreadsheets, you're building risk into every decision. I've watched finance teams spend days manually consolidating data that should be automatically generated.

Siloed Systems

Multiple disconnected tools for billing, CRM, financials, and reporting create data inconsistencies and operational friction. Your team spends more time reconciling systems than analyzing results.

Custom Code Complexity

Heavy reliance on scripts, consultants, or internal resources for basic changes signals a system that wasn't designed for your business model. Every modification becomes a project instead of a configuration.

Compliance Struggles

If ASC 606 compliance or usage-based billing feels like a constant battle, your ERP isn't equipped for modern revenue models. This isn't just an accounting problem, it's a business limitation.

Performance Issues

System crashes, slow performance, and high maintenance costs indicate infrastructure strain. When your ERP becomes a bottleneck, it's time for change.

The AI-Washing Problem

Here's what concerns me most: many vendors are simply bolting AI capabilities onto existing legacy platforms and calling it innovation. This "AI-washing" approach doesn't address fundamental architectural limitations, it just adds complexity to already problematic systems.

True transformation requires AI built into the foundation, not layered on top of decades-old code.

What AI-Native Really Means

In my past articles, I’ve discussed what AI-Native really means. After evaluating countless ERP platforms, I've learned to distinguish between genuine AI-native architecture and marketing buzzwords. Real AI-native systems demonstrate:

Intelligent Automation

Native AI enables automated approval routing, anomaly detection, journal entry generation, and audit trail maintenance. This isn't rule-based automation, it's intelligent processing that adapts to your business patterns.

Dynamic Billing Capabilities

Modern revenue models like subscription billing, usage-based pricing, complex tier structures all require systems designed for flexibility. AI-native platforms handle these order-to-cash scenarios natively, not through workarounds.

Real-Time Financial Intelligence

Centralized, queryable financial and operational data enables real-time insights. Finance teams can analyze trends, identify issues, and make decisions without waiting for reports or manual data aggregation.

Continuous Close Processes

AI-native systems support continuous close methodologies, reducing month-end cycles from weeks to days. Real-time reconciliations and automated variance analysis eliminate much of the manual effort traditionally required.

Built-in Compliance

ASC 606, IFRS 15, and other regulatory requirements are embedded in system logic, not managed through separate modules or manual processes.

The Path Forward: Requirements for Modern ERP

Based on my experience, finance leaders should evaluate ERP systems against these modern requirements:

Scalability Without Complexity: The ability to add new products, entities, or regions without major workarounds or additional headcount.

Accessible Data Intelligence: Forward-thinking reporting that enables faster decision-making without heavy IT involvement.

Configuration Flexibility: The ability to make changes quickly without custom code or consultant dependencies.

Integrated Workflow Management: Intelligent automation of approvals, journal entries, and close processes in record to report.

Native Compliance Support: Built-in support for ASC 606 and other regulatory requirements.

Superior User Experience: Modern interfaces that feel intuitive, not like legacy software.

Sandbox Environments: The ability to test changes and configurations before pushing to production.

Why This Matters Now

The companies that recognize these limitations and act decisively will gain significant competitive advantages. They'll operate with leaner teams, make faster decisions, and scale more efficiently. Those that delay will find themselves increasingly disadvantaged as market conditions demand greater operational discipline.

A Personal Recommendation

Throughout my career, I've been selective about the platforms I endorse. After extensive evaluation, I've found that truly AI-native solutions like Everest Systems represent the next generation of financial infrastructure built from the ground up for modern business models, not retrofitted from legacy architectures.

The question isn't whether your current ERP is "good enough" it's whether it enables your organization to compete and thrive in today's environment.

Take Action

If you recognize your organization in these challenges, now is the time to act. The cost of delay in lost opportunities, operational inefficiencies, and competitive disadvantage far exceeds the investment in modern infrastructure.

The future belongs to organizations that treat their financial technology as a competitive advantage, not a necessary burden.

Let’s talk about how Everest Systems can transform your environment.

The future of ERP is here  and it’s Native AI. Let’s build it together.

Cameron Ackbury, CPA

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