Leaving an ERP: data export rights, exit costs and record-keeping when you switch

Plan your exit from an ERP before you sign the contract. The three things that decide whether leaving is cheap or expensive are: your right to export all your data in a usable format at any time and for a period after termination, the fees and notice periods for ending the contract, and how you will keep access to old records that Australian law requires you to retain, generally for five years for tax records. If any of these is missing from the contract, a future switch can cost far more than it should. This guide explains what to secure and gives an illustrative exit budget.

This guide is part of why ERP projects fail and how to avoid it.

What to secure in the contract

Item	What good looks like	Why it matters
Data ownership	You own your data; vendor has a licence only to provide the service	Avoids disputes about who controls the data
Export at any time	Self-service export of all data, or on request within a set time	Lets you keep your own backups and test exit
Export format	Standard formats (CSV, database backup, standard accounting formats) with field definitions	Data you cannot read is not useful
Attachments and documents	Included in export	Invoices, receipts and contracts are often stored as attachments
Post-termination access	Read-only access or export window, e.g. 30–90 days	Time to extract and check
Deletion	Deletion only after you confirm, with certification	Privacy obligations and control
Transition assistance	Defined help at stated rates	Avoids being held to ransom on day rates
Fees on exit	Stated in the contract	Budget certainty

What data to export

Master data: customers, suppliers, items, price lists, employees, chart of accounts, fixed assets.
Transactions: journals, invoices, bills, payments, orders, stock movements, payroll history.
Balances: trial balances by period and entity, stock valuations, open items.
Audit trail: who changed what and when, where available.
Attachments: source documents linked to transactions.
Configuration: tax codes, workflows, report definitions (useful for the next system's design).
Payroll and super records: pay slips, STP reporting history, super payment records, leave balances.

Test a full export once a year, even if you have no plans to leave. If the export is incomplete, raise it while the vendor still wants your renewal.

Illustrative exit budget

A business leaves a mid-market ERP after five years.

Item	Illustrative cost
Final data extraction by partner: 6 days × $1,500	$9,000
Attachment export and indexing	$3,000
Archive solution for read-only access to old data (3 years)	$4,500
Overlap of old subscription during cutover: 2 months × $4,000	$8,000
Early termination fee (if leaving mid-term)	Depends on contract
Total excluding termination fee	$24,500

Add this to the cost of the new system when comparing alternatives, and include it in the five-year horizon of your TCO if you expect to leave.

Record-keeping after you switch

Australian businesses generally must keep records that explain transactions relevant to tax for five years from when they were prepared or the transactions completed, whichever is later, with some exceptions. Employers must keep employee records, including pay and super records, for seven years under Fair Work rules. Records must be in English (or readily convertible) and accessible.

Options for old data:

keep a read-only licence of the old system (often a reduced fee);
export to an archive database or data warehouse with a simple viewer;
migrate detailed history into the new ERP (costly);
export reports and source documents to secure storage with an index.

Whatever you choose, make sure you can produce records quickly for an ATO review or a Fair Work inquiry. Note that personal information in archives is still subject to the Privacy Act; see privacy and data breaches.

Avoiding lock-in from the start

Prefer standard features and supported extensions over deep customisation.
Keep integrations on documented APIs or an integration platform you control.
Document your configuration and processes in your own words.
Negotiate renewal caps and exit rights at the start, when you have leverage; see contract traps.
Keep your own periodic exports, stored securely.

If the vendor will not release your data

Check the contract's data and termination clauses.
Request the data formally in writing, citing the clause.
If you are a small business, contact your state small business commissioner or the Australian Small Business and Family Enterprise Ombudsman.
Get legal advice where the data is critical.

The disputes and official sources guide lists the bodies.

Frequently asked questions

Can I export data from a cloud ERP whenever I like?

It depends on the product and contract. Many offer self-service exports of standard data; complete exports including attachments and history can require vendor or partner help.

How long will a vendor keep my data after termination?

Contracts vary, from a few days to several months. Negotiate a clear window and confirm deletion only after you have checked the export.

Does the old ERP licence have to continue for five years?

Not necessarily. You need access to the records, which an archive can provide. Check with your tax agent that the archive meets your obligations.

Are exit fees legal?

Exit fees are common. A one-sided early termination term in a standard form contract with a small business may be open to challenge under the unfair contract terms law.

Sources

Australian Taxation Office — record-keeping requirements for businesses
Fair Work Ombudsman — employee record-keeping obligations
Office of the Australian Information Commissioner — handling and destroying personal information
Australian Small Business and Family Enterprise Ombudsman — help with supplier disputes