The Smart Xero Alternative for Growing UK Businesses
Facing Integration Challenges?
Dealing with Data Inaccuracy?
Bogged Down by Reporting Limitations?
Sound familiar?
Discover the answers in our comprehensive comparison guide, which compares Business Central as a Xero competitor, helping you identify the ideal solution for your business.
Searching for a reliable Xero alternative that’s built for growth?
Upgrade your business, simplify your life.
Microsoft Dynamics 365 Business Central offers everything small businesses need to manage finances, operations, and reporting — all in one connected, cloud-based platform.
While Xero is a popular choice for startups and small teams, it often reaches its limits as your business becomes more complex. Manual workarounds, limited customisation, and basic reporting can slow you down just when you need more control.
Business Central is a modern, scalable accounting solution that helps small business owners save time, gain deeper insights, and automate everyday tasks. From managing your business finances and cash flow to tracking inventory and integrating with Microsoft 365, it goes beyond what traditional accounting software can do.
In this guide, we’ll compare Xero with Business Central to help you decide if it’s time to move to a system that grows with you.
Why Look for a Alternative to Xero?
Xero is a great starting point for many small businesses. It’s cloud-based, user-friendly, and handles everyday bookkeeping well. But as your business grows, your accounting software should do more than just keep up — it should help you get ahead.
Here are some of the most common reasons businesses start searching for an alternative to Xero:
⚙️ Limited customisation and automation - Xero offers a clean, user-friendly interface — but it’s not built for more advanced processes or workflows. Many teams end up relying on manual workarounds, which wastes time and introduces errors.
📊 Basic reporting - Financial visibility is critical when managing your business. Xero’s reporting options are limited, especially if you need real-time dashboards or forecasting. Business Central gives you full control with custom reporting and integration with Power BI.
🔗 Integration limitations - Xero connects with many third-party tools, but the integrations aren’t always seamless. Business Central works natively with Microsoft 365 and can automate data across your entire organisation.
📦 Outgrowing basic features - Features like inventory tracking, multi-currency, and project costing often require add-ons or higher-priced tiers. Business Central includes them out of the box — no patchwork of apps required.
Business Central
Seamless integration with Microsoft 365 (Excel, Outlook, Teams etc) and other business applications with automated workflows (Power Automate) and real-time analytics (Power BI).
Scalability and Flexibility as your business grows - accommodating for increasing transaction volumes and complex financial processes without performance issues.
Included in the package - project management, time tracking, detailed financial management tools - all enhanced by AI to provide predictive insights and automate routine tasks.
Consistent, high-quality customer support with dedicated teams to ensure quick resolutions and minimising disruptions to your operations.
Robust reporting and analytics capabilities integrated with Power BI - allowing for detailed, customisable reports and real-time insights.
Xero
Basic reporting tools - Standard reports only; less customisation or forecasting functionality.
Limited feature set - May require multiple add-ons to handle more than basic accounting.
Inventory is limited - Advanced tracking requires third-party apps or paid extras.
No native Microsoft integration - Data syncing requires external connectors or manual exports.
Not ideal for scaling - Better suited for micro-businesses or startups with basic needs.
Why Business Central is a Better Fit for Your Business
Xero is great for the basics. But when your business grows, your software needs to keep up. That’s where Microsoft Dynamics 365 Business Central becomes the smarter choice — especially for small businesses that want more visibility, automation, and control.
Here’s why Business Central is a better Xero alternative:
🧩 Everything in One Place
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Manage finances, inventory, reporting, and operations from a single platform — no add-ons required.
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Ideal for small businesses ready to simplify and scale.
⚙️ Customisable Workflows
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Automate approvals, invoicing, and reporting to save time and reduce errors.
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Create processes that work the way your business works.
📊 Real-Time Data & Dashboards
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Get instant visibility into cash flow, revenue, and performance.
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Easily build custom reports or connect to Power BI for advanced analytics.
💼 Built for Business Owners
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Designed with managing your business in mind — not just the books.
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Aligns finance with sales, purchasing, and operations in one place.
☁️ Cloud-Powered & Secure
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Fully cloud-based software hosted on Microsoft Azure.
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No servers, no updates, no IT headaches — just secure, anywhere access.
Looking for an accounting feature that goes beyond the basics? Business Central is more than an accounting platform — it’s a full business management solution for modern teams.
Who Should You Switch to Business Central?
Not sure if Business Central is the right Xero alternative for your business? If any of the following sound familiar, it might be time to make the move.
