Dynamics 365 Business Central
vs. Xero Accounting

Explore the comparison between the widely used accounting platforms Dynamics 365 Business Central vs. XERO Accounting to make informed decisions when selecting the most suitable solution for your business needs.

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What is an Accounting Solution?

Many businesses reach a stage where manual processes and disjointed accounting practices no longer contribute to their success but constrain their operations. At this point, businesses need a sophisticated accounting solution that serves as a unified platform for gathering, documenting, organising, managing, retrieving and distributing accounting data and various financial details.

An advanced accounting solution enhances financial operations by facilitating streamlined data entry and retrieval, thus mitigating the potential for human errors in record-keeping and calculations. It increases financial accuracy and saves time by automating ledger management, invoicing, payroll processing and tax calculations.

What is Dynamics 365 Business Central?

Dynamics 365 Business Central is a cloud-based ERP solution that connects business processes in real-time for smart decision-making and improved productivity. It is a comprehensive accounting solution that combines fundamental accounting functions like general ledger, accounts payable and accounts receivable with robust inventory management, sales and purchasing abilities.

What is XERO Accounting?

XERO fosters a connection between small businesses and their trusted advisors, granting accountants and bookkeepers immediate access to their financial status. Utilising XERO's powerful accounting capabilities, businesses have visibility of their cash flow, transactions and account particulars from any place, enhancing flexibility and accessibility.

What is Business Central?

Dynamics 365 Business Central vs XERO Comparison

A solution proves its value to a business when it can efficiently accommodate its specific needs. XERO is a robust entry-level accounting solution, offering comprehensive services tailored specially for small startups, freelancers and micro-organisations. However, Business Central can effectively address the evolving needs of a growing business with its cutting-edge capabilities and updated features.

The following table compares the distinctive features of Business Central & XERO Accounting, shedding light on the similarities and differences between Business Central and XERO.

Similarities

General Ledger

Yes

Yes

Invoicing

Yes

Yes

Accounts Payable

Yes

Yes

Accounts Receivable

Yes

Yes

Financial Reporting

Yes

Yes

Bank Reconciliation

Yes

Yes

Multi-Currency Support

Yes

Yes

Project Management Capability

Yes

Yes

Sales CRM Capabilities

Yes

Yes, Generate sales quotes, store and track contacts

Operations, inventory and warehouse management

Yes, with other Microsoft Tools

Yes, with various third-party integrations

User-Friendly Interface

Yes

Yes

Remote Accessibility

Yes

Yes

Licensing

Subscription-based

Subscription-based

Data Analysis

Seamlessly integrated with Power BI for rapid report generation and ersonalized dashboards.

Yes

Device

Any device

Any device

Differences

Functionality

Manages supply chain, manufacturing, etc., in addition to finance operations

Primarily focused on accounting and financial management.

Scalability

Caters to the complex needs of growing businesses.

Suitable for small and mid-sized businesses.

Cloud-based or on-premises

Both

Cloud only

Artificial Intelligence

Yes

No

Supply Chain Management

Yes

No

Service Management

Yes

No

Manufacturing

Yes

No

Office 365 Integration

Seamless integration with Office 365 Applications

Limited Integration

Automation and Custom Applications

Yes, Using Microsoft Power Platform

No

Transactions

No limit

4000 pm

Pricing & Licensing

Parameters

Business Central

XERO Accounting

Latest Version

Dynamics 365 Business Central

XERO Accounting

Pricing

Essential- $104.80 per user/month
Premium- $149.70 per user/month
Team Members- $12 per user/ month

Starter – $27
Standard - $ 54
Premium – Free

Users

A user can obtain licensing for one of the following licensing options.

Dynamics 365 Business Central Essentials

  • Financial Management
  • Customer Relational Management
  • Supply Chain Management
  • Human Resources
  • Project Management

Dynamics 365 Business Central Premium

Service Order Management and Manufacturing in addition to all the features of Business Central Essential.

Dynamics 365 Business Central Team Member

It grants restricted access to specific data and functionalities in Business Central deployments, allowing for read-only capabilities.

A user can obtain licensing for one of the following licensing options.

Starter

  • Send five invoices and quotes
  • Enter five bills
  • Reconcile 20 bank transactions
  • Submit VAT to HMRC for Making Tax Digital
  • Automatic CIS calculations and reports
  • Capture bills and receipts with Hubdoc

Standard

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Submit VAT to HMRC for Making Tax Digital
  • Automatic CIS calculations and reports
  • Capture bills and receipts with Hubdoc

Premium

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Submit VAT to HMRC for Making Tax Digital
  • Automatic CIS calculations and reports
  • Capture bills and receipts with Hubdoc
  • Handle multiple currencies

Why Business Central is the Right Choice?

Business Central stands out as an ideal accounting solution due to its extensive set of features and capabilities that cater to the diverse needs of a business. Unlike XERO Accounting, which primarily deals with financial operations, Business Central takes a more comprehensive approach to business management.

Business Central entails the seamless integration of finance, sales, customer service and other aspects of the business into a real-time unified platform. Let's look at the pivotal factors in choosing Dynamics 365 Business Central over XERO Accounting.

User-Friendly Experience

The user-friendly interface of the Microsoft Dynamics 365 Business Central application provides users with a native app-like experience. This experience makes the applications easy to learn and use, eliminating the exhaustive training sessions needed by XERO Accounting Solutions.

Easy User-Adoption

Business Central seamlessly integrates with the familiar Microsoft 365 suite of applications, including Outlook, Teams, Excel and PowerPoint, and Microsoft Power Platform. This integration facilitates smoother user adoption while ensuring security with its robust security features.

Highly Flexible

Business Central's flexibility shines through its ability to undergo customisation, allowing it to adapt seamlessly to businesses' unique and specific requirements for precise workflows, enhanced productivity and optimised efficiency.

Scalability

As already discussed, Business Central offers scalability to accommodate the needs of growing businesses. Because regular updates from Microsoft ensure its features stay updated with the latest technology advancements to cater to evolving business requirements.

The Role of Dynamics Square

Dynamics Square stands out as the top preference when it comes to selecting a Microsoft Dynamics 365 Partner, empowering Australian businesses to achieve unprecedented success. For 15 years, we have specialised in Microsoft Dynamics 365 solutions, mastering their capabilities to tackle any industry challenges effectively.

Our team consistently help businesses stay relevant in a constantly evolving digital landscape through 24/7 support services and in-person product training. The strong core team with more than 100 Microsoft-certified professionals follow a strategic implementation process to ensure project success.

If you are eager to move forward with a personalised, quick-start package for Dynamics 365 Business Central or are seeking a prompt quote for Business Central, we invite you to reach out to our team at Dynamics Square.

What is Business Central?

Frequently Asked Questions

1. What size of business can use Business Central?

2. What size of business can use XERO Accounting?

3. Which is the best, Business Central or XERO?

4. What is the best accounting software for small businesses in Australia?

5. Is XERO a platform or a software?

6. What is the difference between on-premise and online deployment of Business Central?

7. Does the XERO free trial grant access to all of its features?

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