Xero v Microsoft Dynamics 365 Business Central Comparison

Xero and Microsoft Dynamics 365 Business Central are both popular accounting software platforms. We’ve put together a comparison of them both, so that you can decide which is the better fit for you and your business.
 
Which to Choose >
 

xero-v-business-central

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Accounting software allows for simple, fast data entry and retrieval, fewer human errors and the automation of many business processes. Most businesses have online accounting systems, with many opting for cloud hosting now given its easy access and added security. But now, businesses are wanting more from their accounting software and choosing the right one for your business should be a carefully thought out decision.

Here’s our verdict of when to choose Xero versus Microsoft Dynamics 365 Business Central, alongside a comparison of the different features, useability, reporting, integration capabilities and costs.

 

Key Features of Xero and Microsoft Dynamics 365 Business Central

Depending on what your business needs from your accounting software, the key features you require will vary depending on those needs. Here are some of the key features for both Xero and Microsoft Dynamics 365 Business Central.

Xero

Xero automates everyday business tasks and is better suited for smaller businesses. Like Microsoft Dynamics 365 Business Central, it provides real-time updates on the health of your finances. View and share reports and budgets, all in one place on a customisable dashboard.

Microsoft Dynamics 365 Business Central

A single, comprehensive solution that drives predictive insights, consistent reporting and allows you to make smarter decisions faster. Microsoft Dynamics 365 Business Central provides powerful accounting and supply chain management functionality to small and medium-sized businesses.

Xero

Xero automates everyday business tasks and is better suited for smaller businesses. Like Microsoft Dynamics 365 Business Central, it provides real-time updates on the health of your finances. View and share reports and budgets, all in one place on a customisable dashboard.

Invoicing and quotes – create recurring invoices and receive updates when they’ve been opened.

Pay your employees – calculate and manage payroll/payroll taxes and capture receipts and mileage for expenses.

Pay bills – track and pay bills. See an overview of your accounts payable and cash flow.

Support from Xero – get some support and security monitoring online with Xero Central.

Microsoft Dynamics 365 Business Central

A single, comprehensive solution that drives predictive insights, consistent reporting and allows you to make smarter decisions faster. Microsoft Dynamics 365 Business Central provides powerful accounting and supply chain management functionality to small and medium-sized businesses.

A complete ERP solution without different sections or modules – manage financials, sales, service, and operations in one place.

In the cloud – you can securely access any of your data in real-time through any device with internet; mobile, tablet and desktop.

Powerful reporting – easy reporting on essential business operations, such as trends, profits and sales with graphs and reports.

Full integration capabilities – create quotes, process orders and submit invoices without leaving Outlook, or access live data from Excel.

Feature Comparison of Xero v Microsoft Dynamics 365 Business Central

 

Access and Usability

Feature Xero Microsoft Dynamics 365 Business Central
Cloud option
Accessible from any device
Automatic system updates
Inbuilt access for third-party accountants
Xero
Cloud option
Accessible from any device
Automatic system updates
Inbuilt access for third-party accountants
Microsoft Dynamics 365 Business Central
Cloud option
Accessible from any device
Automatic system updates
Inbuilt access for third-party accountants

Invoicing

Feature Xero Microsoft Dynamics 365 Business Central
Recurring invoicing
Transaction approval workflows Approvals only
Xero
Recurring invoicing
Transaction approval workflows Approvals only
Microsoft Dynamics 365 Business Central
Recurring invoicing
Transaction approval workflows

Expenses and Bills

Feature Xero Microsoft Dynamics 365 Business Central
Integrated payroll
Expense management
Direct debit collections Third party add-on
Bank statement import
Xero
Integrated payroll
Expense management
Direct debit collections Third party add-on
Bank statement import
Microsoft Dynamics 365 Business Central
Integrated payroll
Expense management
Direct debit collections
Bank statement import

Reporting Capabilities

Feature Xero Microsoft Dynamics 365 Business Central
Financial budgets
Inbuilt cashflow reporting
Group accounts consolidation
Live cost of sales posting
Inventory forecasting
Power BI integration
Xero
Financial budgets
Inbuilt cashflow reporting
Group accounts consolidation
Live cost of sales posting
Inventory forecasting
Power BI integration
Microsoft Dynamics 365 Business Central
Financial budgets
Inbuilt cashflow reporting
Group accounts consolidation
Live cost of sales posting
Inventory forecasting
Power BI integration

Integration and add-ons

Feature Xero Microsoft Dynamics 365 Business Central
Microsoft Office 365 integration
Access business data in Outlook
Action quotes and invoices in Outlook
Excel integration Third party add-on
Xero
Microsoft Office 365 integration
Access business data in Outlook
Action quotes and invoices in Outlook
Excel integration Third party add-on
Microsoft Dynamics 365 Business Central
Microsoft Office 365 integration
Access business data in Outlook
Action quotes and invoices in Outlook
Excel integration

Price Comparison

Feature Xero Microsoft Dynamics 365 Business Central
Subscription model available
User/transaction limit 1,000 transaction per month 100+ Users
Year 1 software/subscription cost (5 Users) £606.00 £3,312.00
Xero
Subscription model available
User/transaction limit 1,000 transaction per month
Year 1 software/subscription cost (5 Users) £606.00
Microsoft Dynamics 365 Business Central
Subscription model available
User/transaction limit 100+ Users
Year 1 software/subscription cost (5 Users) £3,312.00

Summary: when to choose Xero v Microsoft Dynamics 365 Business Central

Both Xero and Microsoft Dynamics 365 Business Central are excellent accounting systems when it comes to easily managing bills, expenses, data capture and the quote-to-cash process. But, which one to choose comes down to whether you are looking for some basic accounting functions or whether you are seeking a more robust ERP that can drive sales and growth with powerful reporting and a multitude of functions.

Here’s a quick summary of when to choose Xero versus Microsoft Dynamics 365 Business Central:

When to choose Xero

  • You want a low price point
  • You only need some reporting functionality to understand high-level information
  • You’re only looking for basic accounting features
  • You would like a more minimalist user experience

When to choose Microsoft Dynamics 365 Business Central

  • You want a platform that can connects not only accounts but sales, service, finance, and operations
  • You need powerful integration capabilities to streamline business process
  • Powerful reporting from the Dashboard, without the need to run individual reports
  • Personalisation is made easy without the need to pay for bespoke development

Still wondering if Business Central is right for you?Why Not Try Our Free Business Process Review?

Understanding your current processes is a vital step before implementing new software. Our review will help identify how Microsoft Dynamics 365 Business Central can improve your processes, connect your data and grow your business using powerful integration and reporting.

What happens next? Once you’ve made your enquiry, an expert consultant will give you a call to discuss your initial requirements. Following this, we’ll help you to determine how Microsoft Dynamics 365 Business Central can work for your business and the best way to get you started.

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