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Accounting
David Merz | Founding Partner
Zurich, October 31, 2023
Navigating the complex landscape of accounting software and solutions can be daunting for businesses. With countless options available, how do you find the right fit for your company? This is where Microsoft Dynamics 365 Business Central comes in, a comprehensive ERP solution for simplifying your business operations. Yet, of equal importance is finding the right accounting provider familiar with this software. In this article, we explore these considerations and more, as well provide a breakdown of what Business Central is and how it can help streamline your business.
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Accounting software and enterprise resource planning (ERP) solutions (integrated software systems that companies can use to manage the essential aspects of their business operations in one platform, including production planning, supply chain management, sales, marketing, finance and accounting, human resources, customer relations, and much more) have significantly evolved and advanced over the recent decades. Today, there are literally hundreds of software systems that companies and professionals can choose from.
So how do you know which is best for your business? And does it matter what type of accounting software your external accounting trustee uses when managing the books of your business?
Answering the first question would require its own blog post, but what can be said is that there is an increasing trend towards wholistic ERP systems whereby businesses don’t have to worry about trying to integrate various types of software for the numerous limbs of their business management.
An ideal ERP system should have advanced capabilities to manage all your business needs while being cost effective and simple to understand and use. One such ERP software which ticks all the boxes is Microsoft Dynamics 365 Business Central (referred to simply as “Business Central” for the remainder of this article for simplicity).
Before we explore more about what Business Central is and the benefits it offers, let’s answer the second question as to whether it matters for your business what software your accounting fiduciary uses. There are several reasons why this is indeed a crucial factor to consider:
Compatibility of software is the primary consideration in this list. As was mentioned, many SMEs are adopting ERP platforms to manage their operations effectively, including their accounts. When outsourcing your accounting, it is highly recommended to look for a provider who uses the same software as your in-house ERP and bookkeeping system, or at the least a platform that is compatible. This can help streamline the accounting process as it allows for seamless data sharing and integration, reduces errors, and ensures consistency in reporting across the different areas of your business.
The accounting software that your trustee uses should be user-friendly and understandable for both your in-house team and management as well as your trustee. Complex software can lead to confusion and even errors in your financial data.
Aside from being simple and easy-to-use, the chosen accounting software should also be of high quality, as this will directly affect the accuracy and efficiency of your financial reporting and operations.
It should offer a multitude of robust features and advanced tools that can handle the most complex financial transactions, ensure compliance, and provide accurate reporting.
Advanced features such as automation, real-time updates, and customisable reporting can greatly improve your company’s accounting process and lead to smoother operational efficiency.
If you are currently using different software to your trustee, or are not yet using any software yourself, you need to assess how easy it would be to integrate or onboard your systems to the software that the accounting provider uses.
Factors such as data migration, training requirements, and how long the transition will take are all important considerations. This is not as relevant for small companies who don’t intend to utilise any form of ERP software themselves.
The accounting software that your provider uses should meet data security and compliance standards. It should have features like data encryption and access controls to protect your financial information. This is particularly important when handling sensitive financial data.
As your business grows over time, you need to ensure that the accounting software that your prospective trustee uses can scale with your needs.
Check whether it can handle increased transaction volume and more complex reporting requirements which may be needed as your business expands.
The cost of the accounting software that your trustee uses will be incorporated into their fees one way or another, which makes it something worth considering.
While the software should be advanced enough to handle your accounting requirements, it also needs to align with your budget and offer value for money.
Here you can easily calculate the costs of your accounting.
Business Central is a wholistic business management solution designed for small and medium-sized enterprises (SMEs). It combines Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) capabilities into a single, cloud-based platform.
Business Central offers SMEs a wide range of functionality which includes solutions for finance and accounting, supply chain management, sales, service, operations, and much more. It is a powerful end-to-end platform that can help businesses streamline their operations and planning.
Business Central evolved from Microsoft Dynamics NAV, which was formerly Navision. Here is a brief overview of the transition from Navision to Business Central:
1. From Navision to Microsoft Navision
Navision was originally developed by the Danish software company, PC&C A/S (which later became Navision Software A/S) in 1983 as a user-friendly, standalone accounting software solution. Over the years, Navision expanded on its functionality and capabilities to become a comprehensive ERP system.
Microsoft acquired Navision Software A/S along with the Navision ERP system in 2002 and it became part of the Microsoft Business Solutions division and was renamed Microsoft Navision.
2. Microsoft Dynamics NAV
Microsoft continued to expand and develop the Navision software and, in 2005, rebranded it as Microsoft Dynamics NAV. The software kept its core capabilities, while at the same time there was a focus on improving its integration with other Microsoft products, as well as adding more functionalities and tools in the areas of finance, supply chain management, and business intelligence.
The last version to be released was Microsoft Dynamics NAV 2018.
3. Transition to Microsoft Dynamics 365 Business Central
In 2018, following Microsoft’s introduction of the Dynamics 365 ecosystem (a suite of integrated cloud-based business applications), Microsoft rebranded Dynamics NAV as Dynamics 365 Business Central and offered it as a core application under the Dynamics 365 umbrella.
Since then, they have continued to add improvements to the software, including a more modern and user-friendly interface, better integration with other Microsoft applications such as Excel and Outlook, the inclusion of AI and machine learning capabilities, enhanced data protection and compliance with privacy standards, and much more.
Most importantly, Business Central is designed primarily as a cloud-based solution, offering SMEs the benefits of scalability, accessibility, and automatic updates that comes with cloud technology.
Business Central is a versatile ERP solution that offers numerous benefits for businesses of all sizes and industries. If your business is still using a legacy ERP system or simplistic accounting software, here are some good reasons to consider upgrading to Dynamics 365 Business Central:
Business Central provides a unified platform to manage various aspects of your business, including financials, sales, service, operations, supply chain, inventory, and more. This integrated approach eradicates the need for multiple systems and streamlines your processes.
Business Central offers both a high degree of scalability and flexibility. It can easily be adapted to suit your changing needs, such as adding new users and features or expanding into new markets. This helps ensure that Business Central can scale with you as your business grows.
Business central is available primarily as a cloud-based solution, which allows you to access your business data and applications from anywhere in real time. This is especially valuable for remote work and businesses with operations across different parts of the globe.
It is straightforward to onboard your systems with Business Central. It’s cloud-based nature makes it easier to implement and upgrade, it offers a user-friendly interface that will feel familiar to employees who are experienced with Microsoft applications, which simplifies training.
In addition, Business Central seamlessly integrates with other Microsoft applications and services, which allows for enhanced productivity, reporting, and data analysis across your entire technology stack.
Business Central can help streamline repetitive tasks and reduce manual data entry with its sophisticated workflow automation capabilities. This can lead to greatly improved efficiency, reduce inventory and data errors, and maximise profitability.
You can count on the highest security and privacy standards when using Business Central. All your company’s data is processed and stored in an encrypted format, and the standard inbuilt data protection methods ensure that your business is compliant with data protection regulations.
Microsoft is at the forefront of technological innovation, continuing to invest millions in developing their software. They regularly release updates and improvements to Business Central, so that your business can benefit from the latest features, security updates, and compliance standards.
For businesses operating internationally, Business Central supports multiple languages and currencies, making it suitable for managing global operations and subsidiaries.
If your company is currently making use of Microsoft Dynamics 365 Business Central as an ERP system or is considering making the transition soon, and you are looking for the right digital trustee to partner with, look no further.
Nexova AG, as a digital accounting provider with extensive experience using Business Central, offers your business a seamlessly integrated financial management experience.
With our deep understanding of the software, you can benefit from real-time insights, efficient workflows, and precise financial reporting. The compatibility between your in-house ERP system and Nexova’s expertise in Business Central helps foster a smooth collaboration, facilitating secure data sharing and reporting.
Contact us today more information on how we can help drive your business to success with our advanced accounting solutions that are powered by the equally advanced Business Central software.