Home Everything You Need To Know About Dynamics 365 Business Central

Everything You Need to Know About Dynamics 365 Business Central

Dynamics 365 Business Central: An ERP for Mid-Sized Businesses

Let's be honest - Microsoft Dynamics 365 Business Central is ahead of most other Enterprise Resource Planning (ERP) systems. For a growing, ambitious business, Business Central can transform your finance processes, streamline reporting, and help you reach your goals faster than you thought possible.

Here's everything you need to know about Dynamics Business Central, its core features, and all the ways it can transform your business operations.
Business Central

The Truth About ERP Choice for Growing Businesses

Are you running a UK business with 100-1,000 employees? Still wrestling with SunSystems, Pegasus Opera, or one of the aging Sage Line products? Here's the reality: you're probably 2-3 years away from being forced to replace your current system anyway.

Let's cut to the chase. There are three ERP solutions that 90% of businesses in your situation will end up choosing. Stop wasting time comparing 30 different products when the real decision comes down to three.

What You're Really Choosing Between

Microsoft Dynamics 365 Business Central

  • Owned by Microsoft – integrates natively with Office, Azure, PowerBI
  • Strong for distribution businesses
  • Broad UK partner channel with decent skills availability
  • Proper international coverage
  • Requires additional solutions for some services businesses

Sage Intacct

  • Strong for services businesses
  • Built on Salesforce platform (expensive but useful if you use their CRM)
  • Limited UK skills availability
  • Has yet to develop scale in the UK

NetSuite

  • Strong for both services and distribution
  • Highly customisable but brutally expensive in later years
  • Owned by Oracle (focused on Enterprise, not mid-market)
  • Limited European coverage

The truth? If you're distribution, both Business Central and NetSuite will do the job. If you're services, both Intacct and NetSuite work fine. Stop obsessing over product differences and focus on partner choice.

What is an ERP?

Before we dive into Dynamics 365 Business Central, let's be clear about what an 'ERP' really is.

ERPs are systems used by organisations to manage and integrate the important parts of their business: planning, inventory, sales, finance, marketing, and HR.

Here's what most businesses get wrong: they've had ERP systems for years, but the versions from back then were nothing like what's available today. Many businesses have likely had ERP systems in place for several years. However, the versions released back then were quite different from the ones available today.

A well-executed ERP implementation transforms your business by eliminating byzantine processes and providing great data for better decision-making. Modernising your ERP system can lead to substantial improvements in efficiency, accuracy, and provides a competitive advantage through faster decision-making and more agile operations.

A poorly executed ERP project drains bank balances, destroys professional credibility, and kills staff morale.

What Dynamics Business Central Really Is

If you're new to ERPs, or simply want a refresher on what's available, the first place to start is understanding what Dynamics 365 Business Central brings to the table. Consider this your complete guide to Dynamics 365 Business Central.

But first, let's go right back to the start. Business Central started life as Dynamics NAV back in the mid-1980s. Since the mid-1980s, NAV was a popular on-premises ERP solution. Microsoft acquired it in 2002, then rebuilt it as a cloud-first system in 2018. Mainstream support for NAV ended in 2023.

Business Central essentially evolved from NAV into a cloud solution rather than a solely on-premise one. Microsoft launched Business Central with the aim to provide a more integrated and scalable solution.

Since launch, Business Central has had major upgrades, especially in the 2025 Wave 1 update, including enhanced integration, AI automation, improved user experience, and more.

Business Central in 2025 can now help small to medium businesses (100-1,000 employees) manage financials, sales, service, and operations more efficiently than their current system allows.

Core Features That Matter Most

Business Central is a powerful tool that can not only enhance various areas of your business, but it can help different industries and sectors with unique services. So, whether you're looking for a more general tool or a tailored solution, there's a high chance Business Central has got you covered.

Here are all the core features of Business Central that you need to know about:

Security and Compliance

Bolster the security of your business data, including your precious financials, with Business Central's powerful security features. With automated security updates you don't need to worry about being secure 24/7. These features can also help you stay compliant with industry standards. It does it all for you. Gone are the days of manually updating your hardware.

Cloud and On-Premises Deployment

Business Central can be implemented around your current IT estate. You can choose between cloud-based or on-premises deployment to suit your business needs. If you're looking to completely modernise your business by moving to the cloud, or you need a hybrid solution, Business Central can help you with both.

Project Management

Plan, manage, and track projects efficiently with tools for:

  • Resource Allocation: Ensure the success of all your projects with effective resource allocation
  • Job Costing: Feel confident in your budgeting with accurate project costs tracking
  • Project Tracking: Keep on top of your projects - Business Central monitors project progress and allows you to make adjustments as needed
  • Time and Expense Management: Track billable hours and project expenses

Financial Management

Business Central is particularly strong for finance teams because it eliminates the data delays that plague most finance operations. Instead of waiting for month-end reports, your finance team gets real-time information.

Take charge of your cash flow and gain valuable insights into your business' financial performance with Business Central features. Business Central's dashboards pull easily from your general ledger with the ability to customise report structure.

  • Real-time Financial Reporting: Automated generation of accurate financial reports. No more waiting until month-end
  • Cash Flow Management: Real-time data for effective cash flow oversight
  • Accounts Receivable/Payable: Streamlined invoicing and payment processes that improve cash management
  • Customisable Dashboards: Built-in reporting tools that show what's happening now
  • Power BI Integration: Advanced analytics for deeper data analysis
  • General Ledger Management: Standard accounting functions with customisable report structures
  • Bank Reconciliation: Automated processes that eliminate manual reconciliation headaches

Operations and Supply Chain Management

For businesses that move physical products, Business Central can help improve your supply chain management. Make sure your operations are running efficiently with prompt delivery of products. Plus, optimise inventory levels, and manage your purchasing processes better:

 

  • Inventory Management: Proper stock control that reduces carrying costs and optimises inventory levels
  • Order Processing: Automated order fulfillment ensuring timely product delivery
  • Vendor Management: Manage supplier relationships and purchasing processes without separate software
  • Production Planning: Manage capacity and optimise production schedules
  • Quality Control: Ensure product quality through effective production process management
  • Shop Floor Control: Oversee manufacturing activities and improve productivity

Sales and Service Management

Drive business improvements with:
  • Customer Relationship Management (CRM): Manage customer interactions to improve satisfaction
  • Sales Order Management: Automated sales processes with efficient order tracking
  • Service Management: Timely and effective customer support capabilities
  • Sales Process Automation: Save time and track orders efficiently

Human Resources Management

Business Central can even help your HR team by making their most common tasks easier:

  • Employee Information Management: Efficient employee data management with proper data retention
  • Attendance Tracking: Track employee attendance and manage leave
  • Payroll Processing: Accurate payroll handling ensuring timely payments

Integration and Extensibility

Business Central's strength lies in integration. If you and your team use Microsoft products, you'll find the integration with Dynamics Business Central seamless. Whether you're using Microsoft products like Office 365, Power Apps, and Power Automate, Business Central will easily slot in:

  • Microsoft 365 Integration: Native connection with Office, Teams, Excel, Outlook
  • Third-Party Systems: APIs and web services for non-Microsoft applications
  • E-commerce Platforms: Connects with Shopify, Magento, WooCommerce
  • CRM Systems: Data synchronisation with Dynamics 365 Sales and other CRM solutions
  • Power Apps and Power Automate: Extend functionality with Microsoft's low-code tools

AI and Automation Features

  • Microsoft Copilot: Auto-generate product descriptions and predict late payments
  • Process Automation: Reduce manual tasks across various business functions
  • Intelligent Insights: AI-powered recommendations and analytics

With Business Central features and benefits explained, it's time to dive into how they can help your business.

Microsoft Business Central Empowers Finance Teams

IH London's existing finance system was aging and couldn't provide efficient processes or handle the complexity needed to support the finance department. There were major restrictions with system integrations and reconciliations making financial operations complicated.

Read more about how Business Central and TSG saved the day.
Case Study
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How Business Central Solves Real Business Problems

Business Central Empowers Your Financial Management

It's no secret that Business Central is the finance director's favoured choice of ERP. It is a financial management tool that allows you to make informed decisions based on real-time information - so, gone are the days of out-dated reports.

Let your finance team breathe a little knowing Business Central will help enhance their efforts with:

  • Automated Financial Reporting: Business Central reduces errors and manual effort by automating the generation of accurate financial reports
  • Cash Flow Management: You can oversee and manage cash flow effectively with real-time data
  • Accounts Receivable/Payable: You won't need to struggle with invoicing ever again; Business Central improves cash management by streamlining invoicing and payment processes
  • Built-in Reporting Tools: See all of your insights with user-friendly dashboards created with its built-in reporting tools
  • Power BI Integration: Push your reporting just that bit further by leveraging advanced analytics like Power BI for deeper data analysis
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For Your Finance Team

Finance directors choose Business Central because it eliminates the data delays that plague most finance operations. Instead of waiting for month-end reports, your finance team gets real-time information. Cash flow management becomes proactive rather than reactive.

Business Central vs NetSuite: The Honest Comparison

You may be wondering if Business Central is the be all and end all of ERPs? We think it's the bees' knees, but it's only fair to see how it performs against its competitor, NetSuite:

Feature

Microsoft Dynamics 365 Business Central

NetSuite

Cost

Competitive and transparent pricing

Generally higher price than Business Central and less transparent

Scalability

Scales with your growing business

Scalable and often suited more for larger enterprises

Customisation and flexibility

Has a range of extensions and is highly customisable

It may involve complex configurations but it's highly customisable

Integration Capabilities

Seamless integration with the Microsoft Ecosystem

NetSuite may need more customisations, but it offers robust integration

Functionality

Strongest in financial and automation

Strongest in inventory and order management

UK Support

Broad UK partner channel

Limited UK partner availability

Both solutions have their own superpower, but the only way you can figure out which is best for you is by researching and comparing against your business' needs.

The Partner Decision: More Important Than Product Choice

Here's what most businesses get wrong: they spend months comparing products that are fundamentally similar, then pick a partner based on price. That's backwards.

Your success depends entirely on implementation partner choice. Here's how to not mess this up:

1. Meet the Real Team

Don't just meet the salesperson. You need to meet the project manager, lead consultant, and support person who'll be working on your project. Do they feel connected as a team? Are you comfortable with each other? If not, look elsewhere.

2. Demand the Right Process

There are two approaches to ERP implementation:

The Traditional Approach (wrong): Specify everything endlessly before starting. Your team defines requirements based on existing systems and processes – the ones you're trying to replace. This is self-defeating.

The Right Approach: Get hands-on with the new product early. Work with your partner to confirm standard application processes meet your business needs. Subject any customisation to a high ROI bar.

If a partner proposes the traditional approach, look elsewhere.

3. Check Customer Satisfaction

Ask for their NPS score. If they don't measure it or won't share it, that tells you everything. Industry average is around 30. Good is 40+. Great is 60+.

What You Should Expect to Spend

Stop starting with a number you invented before engaging with a partner. That's a mistake.

Upfront Costs

These are defined by:

  • Your business complexity
  • Your team's willingness to adopt standard processes
  • The extent of customisations you approve as "essential"

Your partner will quote man-days at day rates. Don't squeeze too hard on rates – they'll put juniors on your project and save experienced people for clients who pay properly.

Put your best person on the project – not just someone who can be made available.

Running Costs

  • Software Subscription: Licence costs depend on user numbers. Work with your partner to optimise "lite" or "limited" licences for certain job roles
  • Professional Services: Every 6-12 months you'll need system updates
  • Training: Over 3-5 years, people move on and take system knowledge with them. Training is never "one and done"
  • Support: The quality of support determines ROI on your investment

How to Choose the Right ERP for Your Business

Most ERPs do the same things: integration, automation, scalability, data analysis. Here's how to choose without getting it wrong:

Step 1: Know What's Really Broken

Before considering what's on the market, know what your business truly needs:

  • Analyse Current Processes: Look at workflows and identify what isn't working. If your reporting is inadequate, make note of this as a "must have" feature
  • Define Business Goals: What exactly do you want to achieve? If processes take too long, set a goal for operational efficiency improvement

Step 2: Budget Properly

Look at your numbers and determine your ERP budget, but remember there will be additional costs:

  • Upfront Costs: Initial purchase, implementation, and customisations
  • Ongoing Costs: Maintenance, support, future upgrades, and IT partner costs

There's rarely a fixed rate because each business is different. No two IT partners charge the same either.

Step 3: Research Different ERP Systems

Whether you're sold on Business Central or still looking around, research:

  • Features and Functionalities: Compare features that help with your specific processes and goals
  • Industry-Specific Solutions: Look at industry-specific ERPs if you need exact business fit
  • Compatibility: Consider how well the ERP works with current software and systems
  • Future Growth: Ensure the system scales with your business growth plans

Step 4: Engage Stakeholders

Like any business decision, get backing from the board before investing:

  • Upper Management Support: Secure senior leadership buy-in for smooth implementation
  • End-Users: Talk with people who'll use the system daily. Get their input on must-have features

Step 5: Request Demos and References

Get confirmation you've picked the right system:

  • Demos: Schedule demonstrations to see the ERP system in action
  • References: Talk to businesses already using the solution – they're not trying to sell you anything
  • Funding Options: Check if Microsoft funding is available for your move

Step 6: Find the Right IT Partner

You'll need an IT Partner to help with your new ERP system. Partnering with an IT Partner is essential because you get:

  • Expertise: Wealth of ERP knowledge ensuring correct setup and configuration
  • Experience: Cross-industry experience with best practices and pitfall prevention
  • Customisation: Ability to customise your ERP appropriately (but avoid over-customisation that ties you to one provider)
  • Project Management: Structured approach with proven methodologies
  • Integration: Help integrating Business Central with current applications
  • Training: Smooth transition with change management so teams adapt to new systems
  • Support: Continuous support before, during, and after implementation, including upgrades and updates
  • Maximised ROI: Expert implementation minimises errors and maximises return on investment

How BioPhorum Increased Productivity with the Microsoft Suite

BioPhorum needed a solution that could handle their complex project management requirements while integrating seamlessly with their existing Microsoft environment. Business Central provided the backbone for their operations, connecting with their entire Microsoft suite to create a unified workspace.

The integration allowed BioPhorum to streamline their processes across multiple departments, improve data visibility, and enhance collaboration. With Business Central at the center of their technology stack, they achieved significant productivity gains and better project outcomes.

This is a perfect example of how Business Central's strength lies not just in what it does, but how well it works with everything else in your technology environment.
Case Study
BioPhorum Case Study Featured

Did You Know You Could Potentially Get Funding for Your Move to Business Central?

Yes, you read that right. You can gain access to exclusive Microsoft Funding to help support the enhancement of your IT estate. You can benefit from tailored workshops, assessments, and cloud optimisation funding.

Find out more.

Which IT Partner Should You Work With?

When looking at finding the right partner for your move to Business Central, consider:
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Proven Expertise

Microsoft's Partner programme has certifications that prove experience and knowledge. Look for proper accreditations and specialisations, not just sales badges.

TSG Academy: Training You and Your People on Your Technology

Discover TSG Academy, our learning environment built exclusively for our clients. We have hundreds of resources for you to explore and learn all about Business Central, Microsoft 365, Office 365, and much more!

Why ERP Implementations Fail

Three main reasons:

  1. Wrong partner choice – picked on price, not capability
  2. Over-customisation – recreated old problems in new system
  3. Poor change management – didn't train people properly

Working with TSG

Our NPS score is 87 (industry average is 30). We're fully Microsoft certified and have been implementing Business Central since it launched.

We don't just implement and disappear. We provide:

  • Ongoing support and maintenance
  • Regular training through TSG Academy
  • Help evolving the solution as your business grows
  • Access to Microsoft funding options that can offset implementation costs

Come meet our people. Make up your own mind.

The Bottom Line

Business Central is a capable solution that can transform operations for mid-sized UK businesses. The system handles financials, operations, sales, and service management effectively.

But your success depends entirely on choosing the right implementation partner. The cheapest option usually becomes the most expensive mistake.

Focus on finding a partner with proven expertise, proper support capabilities, and customers who'll genuinely recommend them. Get hands-on with the system early, adopt standard processes where possible, and invest in proper training.

Everything else is just marketing noise.

Frequently Asked Questions

Business Central provides automated financial reporting, real-time data access, and enhanced data analysis. These features eliminate delays and manual errors in financial reporting processes.

Speak to Our Business Central Specialists Today