Dynamics 365 Business Central vs. Xero

Fast transforming business landscape and growing technology complexities are compelling growing organizations to transition from existing inefficient manual tasks and conventional tools (like spreadsheets) to ultra-connected financial and accounting applications.

Microsoft Dynamics 365 (or D365) Business Central and Xero Accounting Software (or Xero) are the two future-ready cloud-based Financial Management solutions that empower emerging enterprises to excel.


Xero is smart entry-level accounting software designed to connect efficiently with a wide array of third-party applications and deliver an extensive range of service offerings, especially for the small start-ups, freelancers, and micro organizations. Xero, however, might be a miss-fit to meet the core requirements of large-sized businesses or fast-growing enterprises, as the accounting software quickly exhausts its performance capabilities. Alternatively, Microsoft Dynamics 365 Business Central is an all-inclusive financial management package that assists Small and Medium Sized Businesses (SMBs) in proficiently managing the organization-wide processes, including finance, operations, sales, customer service, among other functionalities.

System experts at Dynamics Square presents an insightful comparative chart that technology teams can leverage to explore and understand the most prominent aspects of Xero and Microsoft Dynamics 365 Business Central. Management teams, on the other hand, can use the below table to evaluate and discover relevant technology attributes of both the solutions for implementing meaningful strategies and enhancing overall organizational efficiencies.

Comparison Overview


Business Central


Price/licence (per month)

Essential – £53

Starter – £10

Premium – £78

Standard – £24

Team Member – £6

Premium – £30

Premium licence is everything in Essential plus Service Management and Manufacturing.

Different packages including tiered level of capability. Team members are free.

10 full users’ price

£530 pm

£300 pm


No limit

No limit


No limit

4000 pm




Yes – multiple currencies only available in premium

Operations, inventory and warehouse management


Basic inventory management capability

Sales CRM


Generate sales quotes, store and track contacts




Supply chain management



Service management






Additional information


Configure views/dashboards, processes and fields are all completely configurable


Cloud or on-premise




Any device

Any device

Data Analysis

Embedded with Power BI, quick reports, personalised dashboards

Financial reporting and an editable dashboard available





Fully connective via CDM, 200+ connections available

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


Automation and custom applications

Yes, via Power Platform


The above table of differences indicates evidently that Microsoft Dynamics 365 Business Central seamlessly integrates a diverse set of advanced features than Xero Accounting Software. Besides, Dynamics 365 Business Central helps organizations to win their business aspirations, more confidently and successfully.


Microsoft Dynamics 365 Business Central delivers insightful data visualizations through various innovative artificial intelligence (AI) features. These ultra-modern AI capabilities support finance teams in correctly managing the inventories, cash-flows, invoices, payments, and more. Additionally, the smartly integrated Office 365 enables compelling prospects for SMBs to boost productivity, automate manual tasks, transform conventional processes, and ensure promising Returns on Investment (ROI).

How Team Dynamics Square Serves

Seasoned technology professionals at Dynamics Square precisely understand the unique requirements of modern businesses and thus assuring prompt and proficient assistant to organizations. Team Dynamics Square thoroughly analyzes the business needs of the enterprises while implementing the most appropriate Microsoft D365 Business Central integrations.

Moreover, solutions specialists at Dynamics Square allow management teams to restrict unnecessary budgetary escalations, by just deploying the best-fit D365 Business Central modules, including Finance, Purchase, Sales, along with other major tools, instead of upgrading and overhauling the entire technology platform.

Take the next steps for your business

There’s never been a better time to update your systems and take advantage of all the benefits of cloud-based business applications. Learn more about the capabilities of Dynamics 365 Business Central.

Why Dynamics Square?

Dynamics Square is a leading Microsoft Dynamics Partner in USA offering services, providing top-notch technology solutions and services in some of the leading cities namely Texas and California. We leverage market-leading technologies, consultants, processes and proven methodologies to drive your businesses’ digital transformation. Thanks to our unwavering focus towards quality, we have a resounding client-base not just in the United States but also in other parts of the world.

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Years of Expertise

Our years of expertise helps us to align ourselves with our customer’s business needs, expectations with Microsoft Business Solutions.

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In-depth Knowledge

Our in-depth knowledge of products, technology, and Industry helps us to design the solution that align with our customer’s business needs.

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Subject Matter Experts

Our highly experienced team of Professionals having the collective experience of over hundreds of successful Project implementations.

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