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A detailed comparison between Dynamics 365 Business Central & Xero Accounting

In a fast moving business environment and with technology advancing at a rapid scale, the importance of keeping up to date with technology and improving efficiency has never been greater for businesses. 

When it comes to deciding which cloud-based finance systems will help transform the way you manage finances in your business, it can often be a tricky choice. To help you come to a decision on this, in this blog article, we will provide you with a like for like comparison between two ERP powerhouse products: Dynamics 365 Business Central & Xero Accounting. 

Parameters Dynamics 365 Business Central Xero Accounting
Latest Version Dynamics 365 Business Central Xero Accounting
Implementation Costs Starting from £6,000 Starting from £400
Ongoing Costs Much lower cost of ongoing usage & support Higher cost of ongoing usage & support
Licensing Models Subscription based model - you pay to use the system on a monthly basis Subscription based model - you pay to use the system on a monthly basis
Types of User

A user is licensed for either 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 

All the variables included in the above + Service Order Management & Manufacturing

Dynamics 365 Business Central Team Member

A user is licensed for either of the following licensing options:

Starter

- Send 5 invoices and quotes
- Enter 5 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

Price/licence (per month) Essential - £53 Starter - £10
  Premium - £78 Standard - £24
  Team Member - £6 Premium - £30
Number of Users Unlimited Unlimited
Number of Transactions Unlimited 4000 per month
  Core Functionality  
Finance Yes Yes - multiple currencies only available with a premium licence
Operations, inventory & warehouse management Yes Simple inventory management capability
Sales CRM Yes Create sales quotes, store & track contacts
Projects Yes Yes
Supply chain management Yes No
Service management Yes No
Manufacturing Yes No
  Additional Capabilities  
Configuration Configure views/dashboards, processes & fields Yes
Cloud Based or On Premise Both Cloud only
Accessible across all devices Yes Yes
Data Analysis Fully integrated with Power BI, fast reports, customised dashboards Financial reporting & an editable dashboard available
Artificial Intelligence Yes No
Connectivity Fully connective via Common Data Model, 200+ connections available Good connectivity with 500+ business applications. Only limited API transactions per month allowed
Office 365 Integration Office 365 seamlessly integrated with Dynamics 365 for Outlook and Excel Limited
Automation and custom applications Yes through the Microsoft Power Platform No

 

As you can see from the above comparison table, Dynamics 365 Business Central provides more of a wide range of functionality than can be seen with Xero Accounting software. Better still, Dynamics 365 Business Central is fully scalable as your business grows. Furthermore, Dynamics 365 Business Central delivers critical information and access to insights along with a seamless integration with Office 365 which allows you to take advantage of a number of key benefits that will drive a strong return on your investment. 

Next Steps?

If you have read the above comparison table and are keen to take the next step with a tailored quick start Dynamics 365 Business Central package or are looking to get a quick quote via our Business Central calculator then please give our team of experts a call today on 020 3004 4600 or submit an enquiry via our online contact form. 

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