Business Central vs. Finance & Operations: Which Dynamics 365 Solution Best Suits Your SMB?

If your company cannot adapt to the changing technological economy, you will miss out on prospects for scalable growth and become mired in operational difficulties. For most small to medium enterprises, it can be challenging to manage money, accounting, corporate data, and customer services. That’s where ERP platforms come in.

These solutions help alleviate some of the burdens of businesses through automation and data insights and help them identify gaps to fill. However, choosing which ERP platform is appropriate for small and medium-sized businesses (SMBs) can be challenging, given the variety of intriguing options available. For most, the choice is between Dynamics 365 Business Central vs. Dynamics 365 Finance & Supply Chain Management.

Dynamics 365 Business Central combines customer and financial management into a small cloud-based platform. It’s also a development that many see as long overdue, and the ERP market is already seeing its effects. On the other hand, Dynamics 365 Finance & Supply Chain Management, formerly D365 Finance & Operations, is a solution that can manage both simple and sophisticated financial and accounting demands while enabling automation for optimal efficiency.

So, which one do you pick? In this article, we will help you distinguish between Microsoft Dynamics 365 Business Central and Dynamics 365 Finance & Supply Chain Management and determine which best suits your SMB. Let’s dive in!

Overview of Dynamics 365 Business Central

With the help of Dynamics 365 Business Central, small- to medium-sized enterprises can manage their money, operations, marketing, customer support, and more from a single cloud-based platform. Business Central offers end-to-end visibility, enabling organizations to quickly assess the state of their business.

Some of the key features of Dynamics 365 Business Central Include:

Flexibility: Microsoft Business Central supports however many users your company requires, putting no boundaries to your capacity for progress. Each Business Central instance comes with over 70 GB of data storage. Microsoft claims that this space is more than sufficient for many enterprises. Even if your business exceeds it, you can always expand it to accommodate the growing needs.
Affordability: Compared to other ERP systems on the market, Microsoft Dynamics 365 Business Central can be implemented more quickly, more affordably, and with less risk. Because of its open integrations and flexibility, firms may frequently deploy Microsoft software more rapidly than they could with SAP, Oracle, or another product that isn’t as user-friendly, adaptable, or integrated.
Cloud-Based Platform: Very few options on the marketplace have cloud security capabilities. With Dynamics 365 BC, security is of the utmost importance. It assists firms in assigning each employee a different security function, ensuring complete protection of critical information.

Overview of Dynamics 365 Finance & Supply Chain Management

D365 F&SCM integrates financial management capabilities like budgeting and accounting with supply chain management functionalities such as inventory control and procurement. It offers businesses comprehensive visibility and control over crucial processes, leading to improved operational efficiency and overall business performance.F&SCM is an ideal choice for businesses seeking an ERP solution capable of managing intricate localization needs. This enables smooth operations across various countries, currencies, and legal requirements.

Additionally, industries involved in process manufacturing, like chemical, pharmaceutical, or food and beverage, will find F&SCM beneficial due to its specialized functionalities like batch management, formula management, and quality control. Furthermore, organizations that deal with high transaction volumes and require support for numerous users can take advantage of F&SCM’s strong scalability and performance capabilities.

There is a myth that if your company doesn’t fall into the “SMB” category, then you automatically need F&SCM. However, you should consider the requirements needed for your organization to make a well-informed decision with a thorough risk assessment. The last thing you want to do is unnecessarily spend on features or functionalities that you don’t need or are not ready for.

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Why Dynamics 365 Business Central Is Better for SMBs

Many small and medium-sized firms find it difficult to successfully connect software, systems, and procedures. Even worse, finding an affordable, user-friendly, and scalable solution to deploy can be a daunting task. This can make it challenging to see a company’s overall image, resulting in a lack of productivity and sluggish corporate growth.

Dynamics 365 Business Central can solve these problems and provide the necessary connections so that SMB managers can concentrate more on expanding their businesses and less on overseeing back-end operations. The analytics and business intelligence tools included in Dynamics 365 Business Central help small businesses better understand how their operations are progressing and where improvements might be needed. This way, SMB owners can better manage their company’s finances, automate their sales force, manage projects, and manage their human resources.

When it comes to functionality, Business Central is better suited for SMBs over F&SCM for the following reasons:

Enhanced user experience with improved navigation
Reduced learning curve for quicker implementation and onboarding of new employees
Simpler and more straightforward interface, suitable for SMBs with limited IT resources
Lower implementation costs and complexity through reduced customization and configuration (this doesn’t discount the fact that it is highly flexible and can be more customizable compared to F&SCM)
Well-suited for SMBs with standard supply chain and financial management needs
Core functionalities that fulfill most SMB requirements without specialized features
Lower total cost of ownership for SMBs with limited budgets and resource constraints
Faster implementation timeline for rapid returns on investment
Easier management and maintenance for smaller teams within SMBs
Scalable solution for future business expansion.

Making the Choice

All businesses expand and prosper when they have the appropriate software to support them. However, it is clear that deciding between Dynamics 365 Business Central and Dynamics 365 F&O isn’t always clear-cut. Working with a Microsoft Business Solution partner like TMC will help Jump Start your Digital Transformation with Microsoft Business Solutions. Our team will assist you in making decisions, help you deploy the solution appropriate for your unique business requirements, and guarantee that you maximize the most of the platform. Contact us today to get started!