Migrating from Xero to Dynamics 365 Business Central

Are you using Xero? It is a great tool for small business but has limited capabilities, which can bottleneck your business as it grows. Merely, it allows 2,000 invoices and bills per month and lacks functionalities, such as project management, complex reporting, inventory management, and more.

If your business demands additional features apart from finance and is using separate tools for business operation, it’s time to migrate from Xero to Dynamics 365 Business Central. But why Business Central?  Well, it is an all-in-one solution and named the best ERP system of 2024 by Forbes Advisor.

Migrating from Xero to Business Central offers various benefits with its wide range of functionality, which includes both ERP and CRM like Microsoft Dynamics CRM. This robust software solution also supports your organization to scale and integrate with another system when required, with easy user adoption, accurate reporting, and analytics.

In this blog, we will plunge into the detailed intricacies of migration from Xero to Business Central.

What is Business Central?

Business Central, also known as D365 BC, is an all-in-one solution that helps businesses with every requirement, including finance, sales, inventory, production management, and warehouse management. Since this is a cloud-based application, you can use it in real time and can leverage its AI capabilities to get data-driven actionable insight.

Microsoft Dynamics Business Central can be your partner in growth, and you can streamline your various operations using this tool only.

What is Xero Accounting?

Xero accounting is a cloud-based accounting software, which is the ideal solution for businesses, especially SMBs. It fosters connections between businesses and their trusted advisors, such as banks, payment services, accounts, and third-party apps.

This provides instant access to your company's financial access, keeping your business finances effortless.  By leveraging this direct visibility, you can create invoices and integrate them with third-party apps.

However, it is paramount to remember Xero accounting is not an ERP solution. It might not help you with complete resource planning, but you can go for third-party integration to fulfill your requirements.

Comparison Between Xero and Business Central

Pricing Comparison

Limitations of Xero Accounting Software

Xero Accounting has a few limitations. You can only handle 2000 invoices per month. This includes 1000 sales invoices and 1000 purchase bills.  Additionally, it also suggests that each invoice or bill can contain 5-10 lines if you want to avoid performance issues.

Xero also allows businesses to handle up to 2000 bank transactions per month. It depends on the frequency and variability of transactions. Moreover, you can only track 4000 inventory items in your organization.

Once you apply manual payment, it can’t be rolled back until payment is removed. You can’t delete invoices. This limitation can impose a serious threat on you as your business grows.

That’s why businesses should upgrade from Xero to D365 Business Central. You can leverage Microsoft Dynamics Business Central functionalities as your business. It is flexible and can fulfill your business requirements. By using Microsoft Business Central, you can also streamline other operations of your business apart from finance.

Key Reasons to Upgrade from Xero to Business Central

If you are constantly looking for an alternative to Xero, you should upgrade to Dynamics Business Central. It can cover all your basics from sales and finance to inventory management.

But what set Microsoft Dynamics 365 Business Central apart? Its features. Here is how it can help your organization:

1. Comprehensive Integration

D365 Business Central can seamlessly integrate with Microsoft products and third-party applications to fulfill your business requirements. This integration can enhance productivity, which Xero can’t match.

By using Business Central (BC), you can create detailed reports and analytics in real time without any need for extra software. However, if you are still using Xero, you might require additional software to achieve similar reporting capabilities.

2. Advanced Customization

Business Central seamlessly integrates with Power Platform, like Power Automate, Power BI, Power Apps. This integration allows businesses to customize and extend Microsoft Dynamics ERP functionality, which is feasible with Xero. 

3. Scalability

Dynamics 365 Business Central is designed to support your business's growing demand. As technology evolves and your business demand changes, like handling complexities in operation, Microsoft releases regular updates to cater to all the needs.

4. Flexibility

Your business might require support in other modules, like supply chain and manufacturing. D365 Business Central offers customization options so you can ensure streamlined operation. This prevents you from paying for unnecessary features.

5. Improves Sales and Customer Service

Migrating from Xero to Microsoft Dynamics Business Central enables robust CRM and ERP capabilities, allowing to improve sales and customer service. By using this software, you can automate your sales process, manage your sales pipeline, and track your leads. This enables a holistic view of your customers’ data, ensuring efficient customer service.

6. Centralize Data

When you choose D365 BC for your organization, it centralizes the data of your organization. It acts as the single source of truth, ensuring data is stored in secure environments. This helps everyone in your organization to access the data in real-time and update it.

Steps to Migrate from Xero to Business Central

• Identify Your Business Needs. This will help you understand which functionality of Business Central is crucial for your business operation. By doing this, you can eliminate unnecessary complications and can ensure effortless migration.
• Collaborate with Dynamics 365 Implementation Partner. They can help you implement BC hassle-free, as they have decades of experience and expertise.
• Once you have collaborated with a Business Central partner, you can rest assured of data migration. However, it is a crucial step, where you need to extract the data from Xero and transform it into Microsoft Business Central.
• Set up modules, customize reports, and more once data is successfully migrated. Moreover, be assured that  your Microsoft Solutions partner, like Dynamics Square, will work closely with you to customize your specific requirements and ensure hassle-free upgrades.
• If you want to reap the maximum benefit, you should provide adequate training to your employees. 

Furthermore, you can also choose Xero integration for Business Central to further leverage more functionality, ensuring streamlined business operations. Integration ensures hassle-free data flow between these two solutions. This allows you to prevent manual data entry.

Get Dynamics Square Support Now!

Migrating from Xero to Business Central can streamline your business operation. It facilitates exceptional functionalities and modules. Businesses should collaborate with a Microsoft Dynamics Partner to experience seamless migration.

Collaborating with a renowned Dynamics 365 implementation partner can help your business stay relevant in the constantly evolving landscape. Dynamics Square is a renowned Microsoft solution partner that provides onsite support, ensuring your project success.

Additionally, we offer 24/7 support service to resolve any queries. Dynamics Square also offer training so your employees can reap the maximum benefits.

Get in touch with our consultant for successful implementation!