Modernizing accounting technology is rarely a matter of replacing one aging system with a newer platform. Finance leaders must consider how information moves throughout the organization, which processes deserve attention first, whether existing technology can support future requirements, and how new capabilities such as AI fit within established controls.
Those questions were at the center of the recent Controllers Council and Paystand webinar, “How to Modernize Legacy Accounting Systems: Tips, How-Tos and a Roadmap.” Michael Mance, VP Financial Operations at Dialysis Care Center, and Ted Weitzel, CFO at EnergyCX, discussed their experiences managing finance technology in organizations at different stages of growth. Their perspectives ranged from ERP implementations in established companies to building the finance infrastructure required to support a rapidly expanding business.
The discussion produced several practical lessons for CFOs and Controllers considering how to improve their accounting systems without making unnecessary investments or creating additional complexity.
Start With the Business Outcome
One of the clearest themes from the discussion was the importance of defining what the organization needs before selecting technology.
Weitzel described his approach succinctly: “My playbook is look at the outcome and then work backwards from that.”
That approach can help finance teams avoid purchasing sophisticated platforms before the organization has the information, processes, or integrations necessary to use them properly.
For example, a company may want a financial planning or reporting platform with extensive dimensional analysis. If the underlying business systems do not collect the required information consistently, however, the new platform will have little reliable data to analyze.
Modernization therefore begins with several practical questions. What information does management need to operate the business? Where does that information originate? Which systems collect it? Where are the delays, gaps, and manual processes preventing finance from delivering it efficiently?
This broader view also requires finance leaders to examine technology beyond the accounting department. CRM, procurement, payroll, expense management, operational systems, and other platforms may ultimately supply information to finance. If those systems are poorly structured or disconnected, replacing the ERP alone may not resolve the underlying problem.
Evaluate Processes Before Replacing Technology
Mance emphasized that a modernization project creates an opportunity to reconsider existing procedures rather than simply transferring them into a new platform.
He recommended involving departments outside finance, including procurement, IT, and HR, while asking whether current processes remain appropriate. A technology project may reveal that policies, procedures, approval structures, or data practices should be updated before automation occurs.
This evaluation can prevent organizations from reproducing inefficient processes inside a more expensive system.
The webinar audience offered a similar perspective. When attendees were asked how they identify and prioritize systems or workflows for modernization, 47% selected manual, repetitive workflows, while 31% prioritized problem areas or delayed items.
Those areas provide a sensible starting point because they often reveal where technology limitations have a measurable effect on productivity, reporting, or decision-making.
Determine Whether to Optimize, Integrate, or Replace
A recurring question for finance leaders is whether an existing system has reached the end of its useful life or simply needs better configuration and complementary technology.
Weitzel suggested examining the company’s complete technology stack, including existing contracts and the remaining life of those agreements. If an organization is committed to a particular platform for another two years, it may be more practical to optimize that platform while preparing for a later replacement. In other situations, a bolt-on application may address a specific deficiency without requiring a larger implementation.
Mance added two additional considerations: whether the system can grow with the company and whether different platforms can communicate reliably. Integrations and API connections become increasingly important as finance departments rely on information generated throughout the organization.
The appropriate decision will differ by organization, but finance leaders should distinguish between a system that is genuinely incapable of supporting future requirements and one that has never been fully optimized.
Smaller Projects Can Produce Meaningful Improvements
A complete ERP replacement is not the only route to modernization.
During the audience Q&A, both panelists identified expense management, accounts payable, and accounts receivable as areas where organizations can often improve processes without replacing the core ERP.
Mance pointed to expense management as a comparatively manageable project that can improve data collection, approvals, internal controls, reporting, and the employee experience. Modern platforms can also make expense submission more convenient through mobile applications.
Weitzel similarly identified AR, AP, and expense management as quick opportunities for smaller organizations operating on legacy accounting platforms. He also suggested reporting packages as another area where complementary technology can improve capabilities while the organization continues using an older general ledger.
For finance teams that cannot justify an ERP replacement today, targeted projects can reduce manual work while establishing a more capable technology environment over time.
Treat AI as a Tool, Not a Substitute for Finance Judgment
AI was another significant portion of the conversation, particularly as finance software vendors increasingly incorporate AI into existing products.
Both panelists described practical applications already being evaluated or used. Weitzel discussed using AI within AP processes to reduce time spent on routine activities and allow finance professionals to devote more attention to understanding the business. Mance cited AP uploads and analytics, Excel account reconciliations, identification of unusual items, and FP&A narratives as areas where AI has been useful.
At the same time, Weitzel cautioned against relying on AI without understanding the underlying information and expected result.
“This is a tool for you to help, not an answer. Right? Like not an answer, a tool.”
That distinction is particularly pertinent in accounting, where outputs may eventually be reviewed by management, auditors, regulators, or other stakeholders.
The panel also discussed security concerns associated with employees connecting AI applications to corporate systems. Depending on permissions, an AI tool could potentially gain access to sensitive information or execute actions within connected applications. Mance noted that these developments require organizations to strengthen controls as AI use expands.
Choose Implementation Partners with the Post-Go-Live Period in Mind
Selecting a capable system is only part of a successful modernization effort. Mance stressed the importance of the implementation team, customer service, and IT support, particularly during the period immediately following go-live.
Weitzel reinforced that point during the Q&A, advising finance leaders to establish expectations with implementation partners before the project begins.
“Making sure that you have a partner that doesn’t abandon you after go live and that you’ve discussed it, that there’s going to be post go live support and tweaking that’s going to need to happen.”
Mance also recommended having the implementation team assist with the first few accounting closes following deployment. Continued employee training is equally important, particularly as ERP vendors introduce upgrades and additional capabilities.
A realistic implementation plan should therefore extend beyond the technical launch date and provide adequate time for testing, training, close support, and process refinement.
Bring IT and Security into the Process Early
Accounting technology decisions increasingly require expertise from outside finance.
Mance explained that he includes his IT director throughout technology decisions, beginning with the RFP and continuing through implementation and go-live. He also described using project managers on both the IT and accounting sides so the teams can work together throughout the project.
Smaller companies may not have the same resources, but Weitzel identified security leadership as particularly important when integrations are involved.
This collaboration becomes more consequential as finance technology environments become interconnected. Every integration introduces considerations involving access, permissions, data movement, controls, and security. Those matters should be addressed during system evaluation rather than after implementation.
Build a Finance Network You Can Consult
Technology evaluations can become difficult when finance leaders rely entirely on vendor presentations and internal research.
Mance recommended consulting other CFOs and Controllers about systems they have implemented, including what worked, what did not, and what they would do differently. He also suggested asking audit firms whether they have clients using comparable systems and circumstances.
Peer experience can provide useful context that is difficult to obtain during a standard sales process. It can also help finance leaders identify implementation difficulties, integration concerns, service issues, and hidden costs before making a commitment.
Modernization Requires a Company-Wide Perspective
Perhaps the broadest lesson from the webinar was that accounting modernization should not remain confined to accounting.
Finance professionals often have unusual visibility across the organization because their work touches revenue, expenses, payroll, operations, forecasting, cash, reporting, and performance. Weitzel encouraged finance leaders to use that position to participate more actively in broader business and technology decisions.
As he put it, “Focus on how to solve the problems throughout the entire organization and think about the whole tech stack, not just yours.”
For CFOs and Controllers assessing legacy technology, that perspective provides a useful foundation. Start with the business requirements, examine how information moves across departments, improve processes before automating them, and determine which investments will support the organization several years from now.
Modernization does not necessarily require replacing everything at once. A considered sequence of optimization, integration, targeted automation, and eventual replacement can allow finance teams to improve capabilities while controlling cost and implementation risk.
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