Finding The Right ERP Solution: Business Central VS Finance & Operations

For companies embarking on the journey of digitalization and seeking significant enhancements in all their business processes, ERP should already be a familiar term. Enterprise Resource Planning (ERP) systems are indispensable for organizations dealing with vast amounts of data and multiple stakeholders who collaborate continuously to ensure seamless operations. ERP solutions offer cross-departmental visibility, resolve data conflicts, and drive process improvements, acting as catalysts for business growth.

Today, there are multiple vendors in the market offering efficient ERP systems, but few boast a track record like Microsoft’s ERP solutions: Dynamics 365 Business Central and Finance & Operations. In this article, we’ll delve into a comprehensive comparison between these two offerings, outlining their benefits, similarities, key differences, and help you understand which is the optimal choice for your business. If you find yourself torn between these options, then we encourage you to keep reading.

Microsoft’s ERP solutions

Managing day-to-day activities, such as project management, accounting, supply chain operations, procurement, and many more, can become challenging without an efficient software to centralize all data. In this context, Microsoft offers two powerful options from Dynamics 365 suite: Business Central (BC) and Finance & Operations (F&O). Through comparing these two alternatives, our goal is not to declare a winner or determine the best option. Instead, we aim to assist you in understanding which one is better suited to your business size and specific requirements.

Exploring Business Central ERP

Business Central is tailored for small to medium-sized businesses (SMBs) and, at its core, is designed to simplify business management processes. Its scope encompasses financial management, project management,  supply chain, inventory, and basic manufacturing functionalities.

With its roots in Dynamics NAV and shared application code, it offers a sense of familiarity to Dynamics NAV users. Nevertheless, it incorporates numerous enhancements and additional features, complemented by a fresh interface design. One of its key strengths lies in its flexibility and configurability, allowing for seamless adaptation to diverse business requirements. While primarily designed for SMBs, Business Central offers scalability to support moderate growth.

Dynamics 365 Business Central is accessible both on-premise and online, adopting a pure-cloud SaaS model application. Additionally, it integrates seamlessly with various Microsoft and third-party applications, offering expanded functionality and enhancing overall operational efficiency.

Business Central
Microsoft Dynamics 365 Business Central – ERP Solution

Business Central: Salient Features

      • • Integrates data from accounting, customer interactions, purchasing, sales, and inventory, offering real-time insights for financial management and decision-making;
      • Enhances customer service, brand engagement, and sales by prioritizing leads according to revenue potential;
      • • Facilitates on-time project delivery and adherence to budgetary constraints through detailed project tracking via timesheets;
      • • Utilizes built-in intelligence for SKU replenishment forecasting, optimizing inventory management;
      • • Allows you to work with Copilot, the integrated assistant that uses natural language technology, thus creating AI-powered experiences and helping you speed up repetitive tasks.

Discovering Finance & Operations ERP

Designed for large enterprises with intricate financial and operational needs, Dynamics 365 Finance & Operations is a comprehensive ERP solution. It covers a wide scope, including financial management, sales, inventory, supply chain management, manufacturing, human resources, project management, and beyond. With its high level of customization, the platform caters to diverse industries and business processes. Its scalability enables it to handle complex operations, supporting growth and expansion seamlessly.

The deployment options include both on-premises and cloud-based solutions. Additionally, Dynamics 365 Finance & Operations offers seamless integration with other Microsoft products such as Power BI, Office 365, and Azure, empowering advanced analytics and reporting capabilities.

Moreover, its scalability supports large organizational growth without a hitch. However, its extensive features come with a price tag, positioning D365 F&O as a higher-cost solution compared to Dynamics 365 Business Central.

Microsoft Dynamics 365 Finance and Operations - ERP Solution
Microsoft Dynamics 365 Finance and Operations – ERP Solution

Finance & Operations: Salient Features

      • • Efficient and agile automation of operations facilitates production planning and cost management, enabling businesses to swiftly respond to market demands and foster growth;
      • • Empowers sales agents with real-time information, enabling them to provide immediate and personalized service at every customer interaction;
      • Cloud-based accessibility ensures convenient access to data from anywhere, empowering customer service representatives to deliver exceptional experiences across all channels;
      • • Complex dashboard reporting and data analytics support informed business decision-making.;
      • Seamless integration with Office 365 applications and other Microsoft productivity tools such as Power Apps, enhances productivity and workflow optimization.

Key differences between BC and F&O

Transitioning to the differentiations between the two solutions, Dynamics 365 Business Central is primarily targeted towards small to medium-sized businesses (SMBs), offering a scope that covers financial management, supply chain, inventory, and basic manufacturing. It is flexible and configurable to adapt to different business needs, making it suitable for organizations looking for a unified ERP solution with moderate growth potential.

On the other hand, Dynamics 365 Finance & Operations caters to large and enterprise-level businesses with complex financial and operational requirements. It offers a comprehensive ERP solution encompassing financial management, supply chain management, manufacturing, and more. With highly customizable features, it can be tailored to various industries and business processes, providing scalability to handle complex operations and support business growth.

While F&O boasts extensive configuration options, it also commands a higher price point. Meanwhile, Dynamics 365 Business Central targets small to mid-sized businesses, optimizing processes and offering a more economical solution. Business Central, with its more streamlined features, is also designed for faster implementation compared to F&O.

Comparison Microsoft BC vs F&O
Comparison Microsoft BC vs F&O

Key similarities: Which ERP should you choose?

Both Dynamics 365 Business Central and Dynamics 365 Finance & Operations are integral parts of the Microsoft Dynamics 365 suite, guaranteeing seamless integration with other Microsoft products. They both offer robust financial management capabilities, streamlining accounting processes such as accounts payable, accounts receivable, and more.

Additionally, they provide advanced reporting and analytics tools, empowering businesses to make data-driven decisions. With built-in automation features, they enhance efficiency and reduce the need for manual data entry.

At certain stages of your business’s development and growth journey, you may start with Business Central and then transition to Finance & Operations. The good part is, you’re in the right place and LINKSOFT’s team of experts can help you find the best option and guide you through your whole ERP journey.  Let’s craft together the perfect roadmap for your ERP implementation!


Right from the beginning, we set out to build a Microsoft Dynamics Centre of Excellence that reunites the best specialist and the most efficient platforms in order to implement high performing and easy-to-use CRM solutions. We impose the most demanding standards of excellence on our processes, in order to ensure we are able to fulfill our mission and respect our values.

Get in touch with us now, and let’s craft the perfect strategy for your business!