For businesses that have outgrown their existing accounting solution and are looking for a replacement it can be hard to select the right system for your organisation. When selecting the right technology, it is critical that you consider your current requirements but also consider where your organisation will be in 3 to 5 years’ time. Will the chosen solution still fit your requirements then?

Finance system comparison

We have created the below table to allow you to easily compare Sage, Xero and Dynamics 365 Business Central. When looking at Sage 200 we have used the professional option. We have focused on the cloud-based subscription models to provide an easier source of comparison.

 

Business Central

Sage 200 – Professional

Sage 50

Xero

Overview

Price/licence (per month)

Essential £53
Premium £78
Team member £6
First user & modules £418

Additional users £49.50

Team member £6

First user £125
20 users £140 (total)
Starter £10
Standard £24
Premium £30
Team members are free.

10 full users price

£530 pm £773.50 pm £140 pm £300 pm

Users

No limit Up to 100 users Up to 20 users No limit

Transactions

No limit Up to 9 million per annum Up to 1.5 million per annum 4,000 per month

Functionality

Finance

Yes Yes Yes Yes – multiple currencies only available in premium

Supply chain

Yes Yes Limited Basic inventory management capability

Sales CRM

Yes Yes No Generate sales quotes, store and track contacts

Warehouse management

Yes Yes Limited Limited

Service management

Yes No No No

Manufacturing

Yes Via separate module Via Sage 50 manufacturing separate module No

Additional information

Configuration

Very configurable Minimal configuration Minimal configuration Moderately configurable

Cloud or on-premise

Both Both Hosted locally but access via cloud is available Cloud only

Devices

Any device Any device Any device Any device

Data analytics

Yes, embedded with Power BI Limited Not available Financial reporting and an editable dashboard available

AI

Yes No No No

Connectivity

Fully connective via CDM, 200+ connections available Yes via APIs No Good connectivity with 500+ business applications. Limited API transactions per month allowed.

Office 365 integration (Outlook, OneDrive and Excel etc)

Extremely strong two-way integration Available from £10 pm Available from £10 pm Limited

Automation and custom applications

Yes, via Power Platform No No No

Making Tax Digital compliance

Yes Free for latest subscription, additional cost for previous versions and perpetual licence Free for latest subscription, additional cost for previous versions and perpetual licence Yes

Microsoft Dynamics 365 Business Central represents a strong alternative to the traditional choices. Dynamics 365 Business Central is an all-in-one business solution that provides small and midsized businesses (SMBs) with the capability to efficiently and effectively manage finance, operations, sales and customer service.

As you can see from the table, Dynamics 365 Business Central offers organisations a much better range of functionality than Xero or Sage. Dynamics 365 Business Central also offers organisations confidence that it can grow as your organisation does. The way Dynamics 365 Business Central presents information and access to insights combined with the strong Office 365 integration provides your organisation with a compelling set of benefits that will drive a strong return on your investment (discover how to build a business case for Business Central here).