Selecting the Right Accounting System for Your Business: Xero vs. Dynamics 365 Business Central

 

Choosing a suitable accounting ERP system can be quite exciting for organizations. With many accounting packages available, the choice becomes tough for decision makers.

However, most organizations prefer future-ready solutions that meet their accounting purposes.

The two accounting packages we discuss here are “Xero and Microsoft Dynamics Business Central”.

Both Xero and Business Central are cloud-based accounting software that are known for their capabilities. Equipped with robust features, both platforms uniquely cater to the accounting needs of enterprises.

Here we look at which software is suitable for setting up an accounting system.

Business Central and Xero

 

Xero Accounting Software

 

Dynamics Business Central is a complete business management solution that supports accounting along with other key business processes such as sales, supply chain, finance, customer service and project management. Designed for companies of all sizes, Microsoft Dynamics Business Central includes cloud features to help businesses stay competitive in the modern business environment.

 

Microsoft Dynamics Business Central

 

Dynamics Business Central is a complete business management solution that supports accounting along with other key business processes such as sales, supply chain, finance, customer service and project management. Designed for companies of all sizes, Microsoft Dynamics Business Central includes cloud features to help businesses stay competitive in the modern business environment.

 

What makes accounting software suitable for different enterprises?

 

Scalability

 

Xero is scalable software. It can accommodate more users as an enterprise grows. But the addition of users may result in performance issues such as in the speed of the software or volume of transactions.

Microsoft Dynamics Business Central is also a scalable ERP system. Despite being able to manage varied customers of varied sizes and complexity, Business Central can support the current and future demands of today’s businesses. This makes the software suitable for businesses in various industries.

Integration

 

Xero can be integrated with third-party add-ons to extend its functionalities and capabilities. Though Xero is not a complete ERP system, through its integration capability, businesses can address most of their accounting needs.

Microsoft Dynamics 365 Business Central easily integrates with Microsoft tools like Microsoft 365, Power Platform, Dynamics 365 apps, Azure and other third-party apps and software. Business Central’s integration capability enables organizations to streamline their core business operations along with accounting.

Automation

 

Xero supports automation of accounting tasks that take a lot of time to complete. From bank account reconciliation to sending invoice reminders, Xero simplifies tasks through automation.

Microsoft Dynamics 365 BC helps organizations save time through automation. By automating repetitive tasks such as data entry, reporting, bank reconciliation, and invoice processing, employees can save their time and focus on other strategic tasks.

 

Analytics

 

Xero analytics provides an overview of a company’s financial health from one place. Get an idea of cash-flow and overall business financial health through a dashboard. Leveraging insights gained from analytics, small business can make productive decisions that benefit their finance process.

Business Central uses advanced analytics that use business data effectively. This enables organizations to go deeply and understand where they stand financially. With Microsoft analytics, organizations can gain an edge over their competitors.

 

Reporting

 

Xero allows businesses to track finances with accounting reports. Users can generate and access up-to-date reports anytime, customize reports, make decisions, and understand business.

Business Central also provides robust financial reporting tools, giving organizations the insights to foster financial health and decision-making process.

 

Cost Considerations

 

Xero comes with different licensing plans with unique features. You can choose the right plan with the features that your business needs for accounting and finance. Its modest pricing and subscription models make it beneficial for small organizations.

Business Central is a comprehensive ERP system available in varied licensing plans, covering various business processes, including accounting and finance. With licensing models available at different price levels, businesses can choose the most suitable one with the help of LITS SERVICES.

 

Which software is the best option for your business?

 

Xero is designed for small enterprises. As a small business, if your need is to meet your accounting needs only and keep your finances on track, it makes sense to go for Xero software. You can:

  • Get a clear view of cash flow and accounts payable
  • Reimburse expense claims
  • Reconcile bank transactions quickly
  • Accept online payments through credit card
  • Meet project accounting needs
  • Make payroll records easy

 

When you want to comprehensively cover accounting and other processes, then Microsoft Dynamics 365 Business Central would be the apt choice. Business Central is well adaptable to the modern business environment, and it comes with distinct innovative features. In addition, you can take advantage of Microsoft Cloud features like AI, disaster recovery, and machine learning.

  • Automatically reconcile your accounts
  • Create financial reports easily
  • Refine financial forecasts
  • Accounts receivable reports and analytics
  • Manage receivables and payables
  • Invoicing prepayments

Why is Dynamics Business Central an ideal software?

 

Dynamics Business Central is ideal for enterprises of all sizes. As scalable software, you need not worry about costs and infrastructure as your business expands. This future-ready solution receives regular updates from Microsoft, ensuring your business processes remain on track effectively.

Moreover, the software can seamlessly integrate with add-ons, Dynamics 365 apps, Microsoft Cloud, and other Microsoft tools. This enables you to achieve more cost-effectively.

Considering the flexibility it offers, Business Central can be the best choice as accounting ERP for your business compared to Xero.

To get the suitable Microsoft Dynamics 365 Business Central, you can seek guidance from Microsoft Dynamics 365 Partners like LITS SERVICES.

Conclusion

 

Both Xero and D365 Business Central are worthwhile for their features. The selection of the accounting package depends on how each platform can meet a business’s accounting needs. If your purpose is to go beyond meeting your accounting needs, then it is worth choosing Microsoft Dynamics 365 Business Central.

Connect with LITS SERVICES’s Dynamics 365 Professionals and implement the best ERP solution for your business.

 

 

FAQs:

What factors should I consider when choosing between Xero and Business Central for my business?

Consider factors such as scalability, integration capabilities, automation features, analytics tools, reporting options, and cost considerations based on your business’s size and needs.

Is Xero suitable for small businesses only?

While Xero is popular among small businesses, it can also cater to the needs of mid-sized enterprises. It offers scalable solutions that can adapt as your business grows.

Can Business Central handle accounting needs exclusively, or is it more comprehensive?

Business Central is a complete business management solution that encompasses accounting as well as other key business processes such as sales, supply chain, finance, customer service, and project management.

How easy is it to integrate Xero and Business Central with other software and tools?

Both Xero and Business Central offer integration capabilities with third-party apps and software, but Business Central’s integration with Microsoft tools like Microsoft 365, Power Platform, and Dynamics 365 apps may offer additional advantages for businesses already using Microsoft products.

What kind of automation features do Xero and Business Central offer?

Xero and Business Central both support automation of accounting tasks such as bank reconciliation, invoice processing, and reporting. However, Business Central’s automation capabilities may be more extensive due to its broader range of functionalities.

Do Xero and Business Central provide analytics tools for financial insights?

Yes, both Xero and Business Central offer analytics tools to gain insights into financial health. However, Business Central may provide more advanced analytics that delve deeper into financial data, potentially offering a competitive edge.

Are there different pricing plans available for Xero and Business Central?

Yes, both Xero and Business Central offer various licensing plans with different features and pricing levels. Businesses can choose the plan that best suits their needs and budget.

Which software is more future-ready and receives regular updates?

Business Central is designed to be future-ready, receiving regular updates from Microsoft to ensure that it remains aligned with evolving business needs and technological advancements.

Can I get assistance in implementing Business Central for my business?

Yes, you can seek guidance from Microsoft Dynamics 365 Partners like LITS SERVICES to implement Business Central effectively and tailor it to your business’s specific requirements.