Modern businesses have complex needs and processes, especially when it comes to accounting. So if you’re not careful, your finance department could quickly find itself in a state of data sprawl, decentralized information and workflows, and obtuse reporting that’s unreadable by anyone without a degree in finance. But as accounting needs have evolved, so has technology. For better visibility into your accounting processes and a holistic way of managing your books, it’s time to sunset your antiquated accounting software and implement Microsoft Dynamics for accounting.
With Dynamics 365 Business Central and its suite of accounting tools, you can gain real-time visibility into your financial processes and streamline your operations. From chart of accounts tools to integrations with other Microsoft tools like Power BI, Business Central’s accounting solution gives you the financial insights you need to thrive.
What Is Microsoft Dynamics for Accounting?
Microsoft Dynamics for accounting refers to the suite of accounting and financial management tools built into the Dynamics business management platform.
Accounting is a fundamental business process for every organization, regardless of size or industry. As such, Microsoft has equipped its business management solutions with robust accounting and finance capabilities.
Microsoft Dynamics Accounting Solutions for Businesses of All Sizes
Microsoft offers several different iterations of its Dynamics business management platform.
Suppose that you aren’t yet using Microsoft Dynamics to manage your business operations and accounting processes. In that case, it’s essential to familiarize yourself with the available options to choose the right solution.
To simplify your search, we’ll focus on three of the latest Microsoft Dynamics platforms.
Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 Business Central is Microsoft’s newest enterprise resource planning (ERP) solution for small to medium-sized businesses (SMBs). This cloud-based solution is scalable, dynamic, and user-friendly. Business Central is known for its intuitive interface, robust set of tools, and competitive price point.
In addition to including a broad range of accounting tools, it also features analytics capabilities, inventory management functions, and reporting tools. With Dynamics 365 Business Central, you can access real-time insights into financial performance, operational efficiency, and business health.
Microsoft Dynamics GP
Microsoft Dynamics GP (formerly Microsoft Great Plains) is the previous iteration of SMB ERP software. While some businesses have moved off of Dynamics GP to cloud-based ERPs, many businesses still use it.
If you’re among them, you know firsthand how capable and user-friendly it is. But you may have also considered replacing GP with a more modern ERP like Business Central.
The good news is you can extend the service life of Dynamics GP without sacrificing usability or performance. Cavallo offers a suite of proprietary solutions that integrate directly with Dynamics GP, from inventory management to shipping to eCommerce integrations.
By integrating our solutions into your GP instance, you can access powerful new functionalities without moving away from the platform you’re most comfortable with.
Dynamics 365 Finance and Operations
Dynamics 365 Finance and Operations is designed for international enterprises with a global footprint. It includes a complex assortment of functionality and comprehensive accounting capabilities.
Unless your organization is expanding globally, Business Central would likely be the better fit for your accounting and finance needs.
Benefits of Microsoft Dynamics for Accounting
Using Microsoft Dynamics for accounting allows you to accomplish the following business-critical goals.
Merge Inventory and Sales Data
The Microsoft Dynamics accounting application exists within the ERP, meaning your sales, inventory, and accounting data are stored on a centralized database. By using Dynamics to centralize your data, you can better understand the connections and trends between stock, sales volume, and cash flow.
Increased sales and inventory connection visibility allows you to engage in holistic planning and more effectively pursue organizational goals. Consolidating your data will also facilitate better communication and collaboration between teams, as each department will be working from a single source of truth.
Better Understand Your Budget and Financial Performance
Every decision you make will impact your customer-to-cash cycle and overall financial performance. Understanding the repercussions of these decisions will help you steer your business toward better outcomes and stabilize cash flow.
Dynamics GP increases your understanding of your financial performance in several ways. First, it consolidates all of your application data into a single database. Additionally, it includes advanced reporting tools that bring your financial data to life using charts, graphs, and other easy-to-digest visualizations.
Gain Visibility into Your Services and Workflows
Dynamics 365 Business Central is more than just accounting software. It’s an enterprise resource planning solution that allows you to track all of your services, products, and workflows in a single, consolidated platform.
You can use these insights to identify what services or products yield the strongest return for your business. You can also identify workflow inefficiencies or bottlenecks that are negatively impacting total revenue.
Once you know what’s holding you back, you can proactively eliminate these growth barriers and sprint toward your long-term goals.
Reduce AR/AP Processing Times
Lengthy accounts receivable and payable processing times can negatively impact cash flow and cause friction between you and your partners. With Microsoft Dynamics for accounting, you can accelerate your AR/AP processing times, stabilizing revenue and delivering a better experience for trading partners.
Dynamics GP will streamline your other critical accounting and bookkeeping processes as well. The platform includes easy-to-implement automation tools that decrease the need for redundant manual accounting processes. By decreasing manual data entry, you can reduce the likelihood of human errors and maintain better financial visibility.
Maximize the Impact of Dynamics for Accounting with Cavallo
We’re passionate about empowering our customers to optimize every aspect of their order-to-cash cycle, and making their businesses as valuable and efficient as they can be. Together, Microsoft Dynamics for accounting and Cavallo can fuel the transformation of your accounting processes by making your ERP work for you.
Leverage Cavallo to extend the life of your Dynamics GP system, or get the support you need for a successful transition to Dynamics 365 Business Central. Book a demo or speak with an experienced sales agent today to learn more.