Introduction
How do you know if a solution truly fits your business?
Xero, for instance, serves as a sturdy entry-level accounting solution, providing a range of services designed specifically for small startups, freelancers and micro-organisations.
On the other hand, have you considered how Dynamics 365 Business Central could meet the needs of a growing business? With its advanced capabilities and updated features, Business Central is well-equipped to adapt to your business’s evolving demands.
If you are confused about whether to continue using your Xero accounting solution or migrate to the robust Business Central, then you are at the right place. Stay tuned with us on this blog to learn which solution will be more suitable for you.
A Brief Overview of Xero
Xero offers user-friendly online accounting software tailored for small businesses, providing a centralised platform to manage invoices, contracts, balances, financial information, and accounts. By connecting directly to your bank, Xero ensures seamless synchronisation of your financial data.
It also enables real-time collaboration with advisors, allowing them to work with you on your accounts from anywhere. Furthermore, Xero can be customised to fit your unique business needs by integrating with various apps, making bookkeeping and compliance both efficient and effortless.
A Brief Overview of Dynamics 365 Business Central
Business Central is a comprehensive ERP (Enterprise Resource Planning) solution designed for small and mid-sized organisations, aiming to automate and streamline various business processes. With its highly adaptable and feature-rich platform, Business Central supports the management of finance, manufacturing, sales, shipping, project management, services and more back-end operations.
Dynamics 365 Business Central allows businesses to effortlessly add region-specific functionalities and tailor the system to suit even the most specialised industries. Business Central is quick to implement, easy to configure and prioritises simplicity in its product design, development, implementation and usability.
A comparison Between Xero and Business Central
| Parameters | Business Central | XERO |
| Latest Version | Dynamics 365 Business Central | XERO |
| Users | A user can obtain licensing for one of the following licensing options.
Dynamics 365 Business Central Essentials
Dynamics 365 Business Central Premium
Service Order Management and Manufacturing in addition to all the features of Business Central Essential.
Dynamics 365 Business Central Team Member It grants restricted access to specific data and functionalities in Business Central deployments, allowing for read-only capabilities.
|
A user can obtain licensing for one of the following licensing options.
Starter
Standard Bulk Reconciles Transactions and Payroll for up to 2 people feature in addition to all the features of the XERO Starter Plan.
Premium 5 Use Multiple Currencies, Automate Superannuation and Payroll for up to 5 people features in addition to all the features of the Standard Plan.
Ultimate 10 Payroll for up to 10 people, Claim Expenses for up to 5 people at $5 for each additional user, and Track Projects for up to 5 people at $7 for each additional user. All these features are available in addition to Premium 5 Plan. |
Business Central & XERO Similarities |
||
| General Ledger | Yes | Yes |
| Invoicing | Yes | Yes |
| Accounts Payable | Yes | Yes |
| Accounts Receivable | Yes | Yes |
| Financial Reporting | Yes | Yes |
| Bank Reconciliation | Yes | Yes |
| Multi-Currency Support | Yes | Yes |
| Project Management Capability | Yes | Yes |
| Sales CRM Capabilities | Yes | Yes, Generate sales quotes, store and track contacts |
| Operations, inventory and warehouse management | Yes | Yes, Basic inventory management capability |
| Integration | Yes | Yes, with various third-party integrations |
| User-Friendly Interface | Yes | Yes |
| Remote Accessibility | Yes | Yes |
| Licensing | Subscription-based | Subscription-based |
| Data Analysis | Yes
Seamlessly integrated with Power BI for rapid report generation and personalised dashboards. |
Yes |
| Device | Any device | Any device |
Business Central and XERO Differences |
||
| Functionality | Manages supply chain, manufacturing, etc., in addition to finance operations | Primarily focused on accounting and financial management. |
| Scalability | Caters to the complex needs of growing businesses. | Suitable for small and mid-sized businesses. |
| Cloud-based or on-premises | Both | Cloud only |
| Supply Chain Management | Yes | No |
| Service Management | Yes | No |
| Manufacturing | Yes | No |
| Office 365 Integration | Seamless integration with Office 365 Applications | Limited Integration |
| Automation and Custom Applications | Yes, Using Microsoft Power Platform | No |
| Transactions | No limit | 2000 pm |
What is the Need for Migrating to Dynamics 365 Business Central?
Dynamics 365 Business Central is recognised for its robust financial management capabilities, equipped with extensive features to meet various business requirements. In contrast to Xero, which focuses mainly on financial operations, Business Central adopts a holistic approach to managing all aspects of business management.
Transaction Limit
There is generally no transaction volume limit for Business Central, and it can vary depending on various factors such as infrastructure, specific implementation and performance optimisation. However, Xero has a transaction volume limit of around 2000 monthly bank transactions.
Ease of Use
Business Central offers a user-friendly interface that provides users with a native app-like experience. This intuitive design simplifies learning and usage, reducing the need for extensive training sessions required with Xero solutions.
All-in-One Solution
As already discussed, Business Central not only offers comprehensive accounting features but also provides end-to-end integration across finance, sales, inventory, production and customer services. Whereas, Xero only caters to the financial management needs of a business.
User-Adoption
Being a part of a comprehensive Dynamics 365 ecosystem, Business Central integrates with the familiar Office 365 suite of applications, including Outlook, Teams, Excel, etc., seamlessly. However, due to the limited integration opportunity of Xero with Office 365 tools, one can face difficulty in user adoption.
Flexibility
Business Central demonstrates its flexibility by offering customisation options that seamlessly adapt to unique business needs, enhancing workflows, boosting productivity and optimising efficiency. If Xero lacks specific features, migration can address these gaps effectively for you.
Reporting and Analytics
Business Central offers seamless integration with Microsoft Power Platform, providing robust reporting tools that include Power BI integration, unlike Xero. Therefore, migrating to Business Central enables enhanced insights into financial performance and supports informed decision-making.
What is the Process of XERO to Business Central Migration
The process of migration from Xero to Business Central includes data transfer, workflow adaptation, and ensuring the new system functions smoothly within the organisation.
Understand your Business Requirements
It will help prioritise essential Business Central functionalities required for your business, simplifying migration and minimising complications.
Dynamics 365 Partner Collaboration
The migration process includes setting up and configuring Business Central to suit business processes, employee training to use the new system, customising Business Central to cater to your specific requirements and even integrating third-party applications if required. Collaborating with a local, trusted and committed Dynamics 365 Partner is the most important step to ensure a seamless migration process.
Data Migration
Generally, there are four data sets that need to be considered during data migration: general ledger accounts, customers, vendors and items. To use the setup wizard, a Microsoft Excel file with a separate sheet must be created with each data type. However, there is no need to migrate all the data tables if the standard data in the system caters to the business requirements.
When businesses register for Business Central, they have the option to start with a blank company profile where they can add their data and test how the system works before fully implementing the system for business operations. Businesses can transfer information about customers, vendors, inventory and bank accounts.
One can use the assisted setup guide from the Role Centre to import data from an Excel file or other formats, depending on available extensions. Business Central offers templates for accounts, customers, vendors and inventory items.
Business Central can also import data from Xero using a default configuration package. For larger implementations, one can use Business Central’s configuration tools to set up new solutions and import business data.
Business Central Configuration
After successful data migration, the next step is configuring Business Central to meet the business requirements. This process includes setting up the necessary modules, defining workflows, customising forms and reports and setting up user roles and permissions. A Microsoft Partner will collaborate with the business to ensure Business Central is perfectly adapted to their unique needs.
Continuous Support
After the migration process, ongoing support and maintenance for Business Central remain essential. The Microsoft Partner can deliver comprehensive support services, such as training, troubleshooting, system upgrades, and managing issues.
Conclusion
Rest assured, your Dynamics 365 partner will collaborate closely with you to tailor the system to your specific needs and ensure a smooth migration. To maximise the benefits, you must provide sufficient training for your employees.
If you have decided to migrate your Xero accounting solution to Dynamics 365 Business Central, look for a trusted Dynamics 365 partner now.
