Cities and counties across the country are preparing for changes in funding programs, reporting expectations, and public transparency requirements. As 2026 approaches, many organizations are taking a closer look at the tools they depend on each day. One of the most important systems to review is the ERP solution that supports financial management, payroll, budgeting, and revenue activities.

When an ERP system is outdated or does not connect key functions, staff are forced to work around gaps with spreadsheets, repeated data entry, and manual reports. These workarounds can slow processes, increase the chance of errors, and place added pressure on teams during budget season, audits, or grant reporting. A careful review now can help leaders understand whether their current system is prepared for what lies ahead.

Compliance & Reporting

Accurate reporting is essential for local governments. As requirements continue to shift, the ERP system must support automatic updates and produce reports that meet established standards such as GASB 34, GAAP, and GAAFR.

A 2026-ready system should allow finance and budgeting data to flow into reports without extra exports or adjustments. It should also offer clear audit trails and on-demand transparency reports. These capabilities help reduce delays and ensure that information is available when staff, auditors, or elected officials need it.

Budgeting & Forecasting

Budget development has grown more detailed in recent years. Departments need clear access to their information, along with a reliable way to submit requests and review personnel costs.

A modern ERP system should connect budgeting with payroll and financial data so that salary schedules, benefit amounts, and updated totals are always available. Multi-year budgeting, scenario planning, and automatic updates across departments give leaders a more complete picture of upcoming needs.

Integration & Connectivity

One of the most common challenges for cities and counties is having multiple systems that do not share information. This can lead to duplicate entry, inconsistent data, and reporting delays.

A 2026-ready ERP system should integrate core financial, payroll, HR, revenue, and utility functions. Data must update in real time, and online payment activity should connect directly with billing and collections. When departments rely on a single connected system, staff spend less time correcting records and more time supporting daily operations.

Citizen Transparency & Engagement

Public expectations around transparency continue to grow. Residents want a simple way to view bills, pay online, and understand how funds are used.

Tools that provide budget summaries and spending information can reduce FOIA requests and save staff time. A modern ERP system should support online access and offer a dependable method to share updates and notifications when needed.

Security & Cloud Readiness

Hosting and security play a large role in daily reliability. Cloud-ready systems offer secure access, managed backups, and regular updates without adding pressure to local IT teams.

Disaster recovery, remote access, and consistent system performance are important factors when preparing for the future.

Support & Vendor Partnership

The level of support matters. Agencies benefit from a knowledgeable team that understands local government needs.

A strong partner offers timely assistance, clear communication, and a straightforward product roadmap.

Score Your Readiness

The checklist groups readiness into three levels:

15-20: Ready for 2026. System is unified and prepared.

10-14: Partially ready. Some updates or integration work may be needed.

0-9: At risk. The current system may not meet future requirements.

Download the ERP Readiness Checklist

Your organization can use the full ERP Readiness Checklist to evaluate key areas and identify where improvements may be needed. The checklist provides a clear, structured way to review system capabilities and prepare for upcoming requirements.