Business Central is a market-leading ERP system, providing all the functionality your business needs to manage its back-office functions. From streamlining financial report to maintaining consistent inventory levels, Business Central is packed with automation, AI-power and high-quality features that make it easier to run and scale your organisation.

However, when considering implementing any tech solution into your business, it’s natural to want to the ins and outs. Below, we’ve answered the most common questions asked about Business Central, so you can find out more.

Business Central features and functionality

What is Microsoft Dynamics 365 Business Central?

Microsoft Dynamics 365 Business Central is a comprehensive, all-in-one business management solution designed for small and medium-sized businesses. It integrates various aspects of operations, including financials, supply chain management, sales, customer service and project management, within a unified platform. This integration helps businesses streamline their processes, gain better visibility into their data and make more informed decisions. By connecting these traditionally separate functions, Business Central improves efficiency, enhance collaboration across departments and drives business growth.

What is the difference between Microsoft Dynamics 365 and Microsoft Dynamics 365 Business Central?

Microsoft Dynamics 365 Business Central is a comprehensive platform which integrates core capability across finance, operations, supply chain and ERP across one centralised platform. Microsoft Dynamics 365 is a modular solution comprising of several applications including Business Central, Sales, Customer Service, Marketing, HR, Field Service and Customer Insights.

What are the key features of Business Central?

The core of Business Central lies in its broad set of features designed to manage essential business processes:

• In financial management, it offers a robust general ledger, manages accounts payable and receivable, facilitates budgeting and cash flow forecasting and supports multi-currency operations
• For supply chain management, it handles inventory control, purchase order processing, and sales order management
• The sales and marketing capabilities include customer relationship management (CRM) functionalities to manage leads, opportunities and customer interactions
• Tools for project management, allowing businesses to track progress, manage resources, and bill clients effectively

For organisations with more complex needs, the Premium license extends these capabilities with service management features for scheduling and dispatching service technicians and manufacturing functionalities for production planning and shop floor control.

What are the key features of Microsoft Dynamics ERP for small businesses?

For SMBs, Business Central offers:

• Financial management: Automated invoicing, cash flow forecasting.
• Inventory and supply chain: Real-time stock tracking.
• Project management: Budgeting and resource allocation.
• Reporting and analytics: Built-in dashboards powered by Power BI.
• Scalability: Start small and add modules as you grow.

Can Business Central be customised?

Yes! A significant strength of Business Central is its extensive customisation options.

Businesses can tailor the system to their unique requirements using extensions, which are add-on packages that introduce new functionalities or modify existing ones without altering the base application code. This approach ensures that customizations are easier to manage and don’t impede future updates.

For more in-depth modifications, developers can use the AL development language, to build business applications on the Microsoft Dynamics 365 platform. This allows for highly specific adaptations to workflows, user interfaces, and integrations with other systems, ensuring Business Central can truly align with your business and its operational model.

Can Microsoft Business Central integrate with other Microsoft tools like Office 365?

Yes! Business Central integrates natively with:

• Microsoft 365 (Office apps): Create invoices in Outlook, export data to Excel.
• Power BI: Advanced analytics and dashboards.
• Power Automate: Workflow automation.
• Teams: Collaborate and share ERP data in chats. This integration reduces manual work and improves productivity.

Is Business Central suitable for my business size?

Business Central caters to the needs of small to medium-sized businesses. Its modular nature allows businesses to start with the functionalities they need and scale up as they grow. The cloud-based deployment option is particularly appealing to SMBs as it reduces the need for significant upfront IT infrastructure investment and offers flexibility in terms of user count.

While it’s primarily targeted at this segment, the scalability of the platform means that even as an SMB expands, Business Central can adapt to handle increased data volumes, more complex processes, and a larger number of users, making it a solution that can evolve with the business. So, if you fit within this category, Business Central will offer you everything you need.

What deployment options are available?

Unlike many ERP systems, Business Central offers flexibility in how it can be deployed to best suit a company’s IT strategy and preferences.

The primary option is the cloud-based Software as a Service (SaaS) model, where Microsoft hosts and manages the entire infrastructure, providing users with access through a web browser. This option offers automatic updates, high availability and scalability.

If you have specific compliance requirements or want greater control over the environment, an on-premises deployment is also available. In this scenario, the business manages the servers and the Business Central application themselves.

Can Business Central handle reporting?

Yes, Business Central offers a comprehensive suite of reporting capabilities. Out of the box, it includes hundreds of built-in reports covering various aspects of the business, such as financial statements, sales analyses, inventory levels and customer history. These reports provide immediate insights into key performance indicators.

You can also create custom reports tailored to specific business needs. Users can leverage tools within Business Central or integrate with Microsoft Power BI to design more sophisticated and visually engaging reports and dashboards, enabling deeper analysis and better decision-making based on real-time data.

Is there AI in Business Central?

Yes, Microsoft has been increasingly integrating AI capabilities into Business Central to enhance various aspects of business operations, with Microsoft Copilot integration.

AI can assist in areas like demand forecasting, anomaly detection, cash flow report, generating product descriptions and more. This automates repetitive tasks and drives accuracy, allowing teams to save time without dropping quality.

How does Microsoft Dynamics 365 Business Central compare to other ERP systems?

Business Central stands out for its cloud-first approach, tight integration with Microsoft tools, and scalability. Unlike many traditional ERP systems that require heavy customization and on-premises infrastructure, Business Central offers:

• Ease of use with a familiar Microsoft interface.
• Flexible pricing for SMBs and growing enterprises.
• Rapid deployment compared to legacy ERPs like SAP or Oracle. It’s ideal for businesses that want modern functionality without the complexity and cost of large-scale ERP systems.

How does Dynamics 365 Business Central compare to Sage?

Microsoft Dynamics 365 Business Central (BC) is a comprehensive ERP solution tightly integrated with the Microsoft ecosystem, offering broad functionality beyond accounting, strong scalability, flexible deployment and growing AI capabilities, making it ideal for Microsoft-centric businesses needing an all-in-one, scalable platform. In contrast, Sage offers various accounting and business management solutions, with some, like Sage Intacct, providing robust cloud ERP focused on financial management and specific strengths such as subscription billing; the optimal choice depends on individual business needs, existing tech stacks, and desired scope beyond core accounting.

How does Dynamics 365 Business Central compare to Netsuite?

NetSuite, a cloud-native ERP suite, targets a broader range of businesses with a unified platform emphasizing strong financials and global management, often requiring additional modules for advanced features; conversely, Microsoft Dynamics 365 Business Central (BC), while also comprehensive for SMEs, offers deep integration with the Microsoft ecosystem, flexible deployment (cloud-first), and strong functionality, especially in its Premium version, making it ideal for Microsoft-centric businesses seeking a scalable and well-integrated ERP.

Why should I upgrade from Dynamics NAV to Business Central?

There’s no two ways about it, Business Central is an upgrade from Dynamics NAV. Its cloud-based nature is efficient and highly advanced for end-to-end business management. The software is precise and has adaptable features for small and medium scale businesses.

How much storage does it provide me with?

Business Central entitles you to 80GB per tenant, and then 2GB per user for Essentials and 3GB per user for Premium.

Will it allow me to access data quickly?

Certainly! You can get an end-to-end view of up-to-date data from across your business, from any device. Drive performance using built-in AI to spot trends, prevent issues and deliver great customer experience.

Support and licensing

How is Business Central licensed?

Business Central utilises a per-user, per-month subscription model. This means that organisations pay a monthly fee for each user who needs access to the system. Typically, these subscriptions are based on an annual commitment, providing a predictable cost structure. This model allows businesses to scale their user base up or down as needed.

What are the licensing options for Business Central?

You need to purchase licenses to use Business Central. There are no minimum user qualification criteria.

These are the types of paid licences you can obtain for Business Central:

• Essential: This license provides access to comprehensive business management features, including financial management, sales, purchasing, inventory and warehouse management.
• Premium: This includes all Essential features plus additional capabilities for service management and manufacturing.
• Team Member: Team Members can view data and perform basic tasks, but have limited access beyond this. You need an Essentials or Premium subscription to get a Team Member licence.

The number of licences and what type will depend on how many people require access to Business Central and at what level. You can find out more about licensing here.

Can you get ongoing support with Business Central?

When implementing Business Central, you’ll work with a Microsoft Partner (like Infinity Group!). Your chosen partner should be able to support you after the implementation is complete, enabling you to maintain your system.

If you work with us, we offer an ongoing support package for all our Business Central deployments giving you access our Service Desk to log tickets, request fixes or iron out any bugs.

Where can I get training for Microsoft Dynamics 365 Business Central?

All our Business Central deployments include full training to enable you to learn how to get the most from your system and to ensure maximum adoption across the business is achieved.

Implementing Business Central

What should I consider when choosing an ERP system like Microsoft Dynamics for my company?

Key factors include:

• Business size and complexity: Does the ERP scale with your growth?
• Integration needs: Will it work seamlessly with your existing tools?
• Industry requirements: Does it support compliance and sector-specific workflows?
• Budget and ROI: Consider total cost of ownership, not just licensing.
• Cloud vs. on-premises: Business Central is cloud-based, which reduces IT overhead.

What does the Business Central implementation process involve?

Implementing Business Central is a structured process that typically begins with a thorough assessment of a business’s current processes, requirements and goals. Based on this analysis, a solution design is created, outlining how Business Central will be configured to meet those needs.

The next crucial step is data migration, where existing data from legacy systems is transferred into Business Central. Following this, the system is configured according to the agreed-upon design, including setting up user roles, workflows, and integrations.

Rigorous testing is then conducted to ensure the system functions correctly. User training is provided to equip employees with the skills to use the new system effectively. Finally, the go-live phase involves the actual deployment of Business Central, followed by ongoing support and optimisation.

How long does a Business Central implementation take?

The timeline for a Business Central implementation can vary significantly depending on the complexity of the business processes, the extent of customization required, and the chosen implementation approach. A relatively straightforward implementation with minimal customisation might take just a few days or weeks, especially if a standardised methodology is used. However, more complex projects involving extensive customisation, integration with multiple third-party systems and significant data migration can take several months. It’s essential to have a clear understanding of the scope of the project and to work closely with your implementation partner to establish a realistic timeline.

How do I migrate my data to Business Central?

Migrating data to Business Central typically involves several key steps to ensure accuracy and integrity. First, the data from your existing systems needs to be extracted. Then, this data is often transformed or cleansed to fit the structure and requirements of Business Central. Finally, the cleaned data is imported into the new system using various tools and methods available within Business Central, such as data migration wizards or configuration packages. Due to the critical nature of data migration, it is highly recommended to work with an experienced implementation partner who can guide you through this process, ensuring a smooth and accurate transition of your valuable business information.

Can Business Central integrate with third-party applications?

Yes, Business Central is designed with integration capabilities in mind. It can readily connect with a wide range of third-party applications to extend its functionality and streamline data flow across different systems. These integrations can be achieved through APIs (Application Programming Interfaces), connectors or middleware solutions. The ability to integrate with other tools allows businesses to maintain their preferred systems while leveraging the comprehensive capabilities of Business Central.

Security and compliance

How secure is data in Business Central?

Business Central prioritises data security, underpinned by Microsoft’s robust enterprise-grade security infrastructure. This includes advanced measures such as data encryption both at rest and in transit, stringent access controls, and continuous security monitoring and updates. Each Business Central tenant operates within its own isolated database, ensuring that your data is logically separated and protected from other organisations. Microsoft invests heavily in security research and development to stay ahead of potential threats, providing a secure environment for your business-critical information.

How does Business Central help with compliance?

Business Central incorporates features and functionalities designed to assist businesses in meeting various compliance requirements, such as GDPR. It offers tools to manage data access, provides audit trails to track data changes, and includes features that help with data privacy management. While Business Central provides a framework to support compliance, it’s important to note that achieving full compliance also requires businesses to establish appropriate processes and policies. The system’s flexibility allows it to be configured to align with specific regulatory needs relevant to different industries and regions.

Is Business Central compliant with international accounting standards?

Yes, Business Central is designed to be flexible enough to accommodate various international accounting standards and practices. While it doesn’t inherently enforce one specific set of standards universally, its robust financial management capabilities, including features for general ledger, multi-currency handling and financial reporting, can be configured to align with standards such as IFRS (International Financial Reporting Standards) or local GAAP (Generally Accepted Accounting Principles). The system’s adaptability allows businesses operating in different countries to set up their financial processes in accordance with relevant regulatory requirements.

Want to learn more about Business Central?

Business Central is a powerful solution for any organisation. If you want to see it in action and learn more, watch our demo below: