Microsoft Business Central Accounting Software

Microsoft Dynamics 365 Business Central is cloud-based accounting software designed for small to medium-sized businesses.

It goes beyond basic bookkeeping by offering full financial management, sales and purchasing, project costing, inventory control, and built-in integration with Microsoft 365. As part of the Microsoft Dynamics 365 suite, it’s a flexible, scalable accounting platform that can grow with your business.

In this blog, we explore what Business Central is, how it works as accounting software, and why it’s becoming a go-to choice for modern UK businesses.

What Is Microsoft Dynamics 365 Business Central?

Business Central is Microsoft’s all-in-one accounting software. It’s essentially an ERP (Enterprise Resource Planning) system, but unlike complex ERPs, it’s designed to be accessible and user-friendly for growing SMEs.

As accounting software, it provides everything you’d expect and more:

• General ledger, journals and chart of accounts

• Bank integration and reconciliation

• VAT and Making Tax Digital (MTD) compliance

• Sales and purchase ledgers

• Fixed asset tracking

• Budgeting and cash flow forecasting

• Multi-currency and multi-company management

And because it’s part of the Microsoft ecosystem, it links natively with tools like Excel, Teams, Outlook and Power BI for real-time reporting and collaboration.

How Business Central Works as Accounting Software

Many businesses start with tools like Sage 50, Xero, or QuickBooks and outgrow them. Business Central steps in when you need:

• Deeper financial control

• Advanced reporting

• Multiple companies or departments

• Integrated stock, sales, or project tracking

As accounting software, Business Central excels by combining financials with operational data. For example:

Key Benefits of Business Central as an Accounting Platform

✅ Scalable Cloud Solution
Access anywhere, no servers needed, and fully Microsoft Azure-hosted.

✅ Microsoft 365 Integration
Raise invoices from Outlook, edit reports in Excel, chat through budgets in Teams — all from one ecosystem.

✅ Real-Time Reporting & Dashboards
Custom reports with live data, plus optional Power BI integration for in-depth visuals.

✅ Multi-Entity & Multi-Currency Ready
Perfect for businesses with multiple legal entities or overseas operations.

✅ Secure & Auditable
Granular permissions and full audit logs for all financial entries.

✅ Customisable & Modular
Instead of modular functionality, everything is already built in. Ready to use when you are.

Who Should Use Business Central for Accounting?

Business Central is ideal if:

• You’ve outgrown Sage 50, QuickBooks, or spreadsheets

• You want an accounting system that connects seamlessly with operations

• You need multiple user access and role-based controls

• You want reliable, supportable software from a global brand

💡 It’s especially well-suited to businesses in:

• Wholesale & Distribution

• Professional Services

• Manufacturing

• Multi-location or multi-company environments

How Much Does Business Central Accounting Software Cost?

• Essentials licence: £57.50/user/month

• Premium licence: £82.20/user/month

• Team members: £6.60/user/month

Implementation and support costs vary depending on your setup. You can explore more in our Business Central pricing guide →

Why Choose HBP Group for Business Central?

We’ve been supporting UK businesses with finance systems for over 30 years. As a Microsoft-certified partner, we don’t just install Business Central — we help you make the most of it.

✅ AAT-accredited support team that understands accounting
✅ Full IT infrastructure expertise to support your cloud journey
✅ Custom setup, migration, training and UK-based support
✅ No tech jargon — just expert help from people who get your business

📞 Speak to our Business Central experts →

Frequently Asked Questions: Business Central Accounting Software

Is Business Central accounting software?

Yes — Microsoft Dynamics 365 Business Central is fully featured cloud accounting software. It handles core financial processes, including general ledger, invoicing, journals, bank reconciliations, VAT submissions, budgeting and reporting. It’s used by small to medium-sized businesses to manage finance alongside stock, sales, purchasing and projects.

What accounting features are included in Business Central?

Business Central includes:

• General ledger and chart of accounts

• Accounts receivable and payable

• Sales and purchase invoicing

• Budgeting and cost centres

• Bank integration and reconciliation

• Fixed asset register and depreciation

• VAT management and MTD compliance

• Cash flow forecasting and reporting tools

• Audit trails and approvals

It’s more than just bookkeeping — it’s a full financial management system.

Can I use Business Central for VAT and Making Tax Digital (MTD)?

Yes — Business Central is fully compliant with HMRC’s Making Tax Digital (MTD) requirements. You can submit VAT returns directly to HMRC and track digital records within the system. It’s regularly updated to stay compliant with UK financial regulations.

Is Business Central suitable for UK businesses?

Absolutely. Business Central supports:

• GBP and multi-currency

• UK chart of accounts

• UK VAT rules and MTD

• Local bank formats and integrations

• UK-based support from certified Microsoft partners like The HBP Group

It’s one of the most popular cloud accounting systems for UK-based SMEs and growing businesses.

How is Business Central different from other accounting software?

Unlike tools like Sage 50, QuickBooks or Xero, Business Central combines accounting with wider business operations — including stock control, project costing, CRM integration and departmental reporting. It’s ideal if you’ve outgrown basic systems and need a scalable, all-in-one platform.

Is Business Central cloud-based?

Yes. Business Central is 100% cloud-based and hosted on Microsoft Azure, meaning you can access your accounts from anywhere, with no need for on-premise servers. It's also secure, scalable and constantly updated.

Does Business Central integrate with Microsoft 365?

Yes — Business Central integrates natively with Microsoft 365 tools like:

• Excel (export/import data, manipulate reports)

• Outlook (view customer records and raise invoices directly from emails)

• Teams (collaborate on reports or finance discussions)

• Power BI (visualise financial data and trends)

This tight integration helps finance teams work faster and more effectively.

Can Business Central handle multiple companies or currencies?

Yes. Business Central supports:

• Multi-entity consolidation and reporting

• Intercompany postings

• Multi-currency accounting

• Exchange rate updates

It’s ideal for businesses with subsidiaries, branches or international operations.

How many users can Business Central support?

Business Central scales easily — from a few users to hundreds. User licences are available for:

• Essentials (£57.50/user/month)

• Premium (£82.20/user/month)

• Team Members (£6.60/user/month)

Role-based permissions allow you to tailor access for finance, admin, sales, and operations staff.

Who supports Business Central in the UK?

Certified Microsoft Partners like The HBP Group provide local implementation, training and ongoing support. We offer:

• AAT-accredited financial system support

• UK-based helpdesk and account managers

• Proven migration paths

• Custom integrations and development

We're here long after your go-live date.

📩 Talk to our team about switching to Business Central →