Mid-size accounting teams often juggle fragmented data, lengthy closes, and manual processes that don’t scale. Dynamics 365 Business Central is a cloud-first ERP designed for SMBs that unifies accounting, operations, and reporting, enabling finance to operate more efficiently with fewer errors. Mid-size enterprises are organizations typically too large for entry-level accounting tools but lack the budget or IT infrastructure of large enterprises; they require scalable, integrated systems for sustainable growth. If you’re wondering whether Business Central is suitable for accounting as you grow, the answer is yes: its native financials, dimensions, role-based dashboards, and embedded automation yield measurable impact. The following blog discusses how D365 Business Central is suitable as accounting software for growing or mid-sized enterprises
Understand Mid-Size Accounting Challenges
Mid-sized organizations commonly face:
- Fragmented data
- Slow period close
- Manual invoice matching
- Inconsistent financial reporting
- Heavy reliance on Excel workarounds
Fragmented data is financial information residing in disconnected systems or spreadsheets, making reconciliation and reporting error-prone and time-consuming.
Common symptoms include:
- Month-end close delays due to manual data entry
- Reporting gaps from inconsistent use of financial dimensions
- Bottlenecks when AP/AR workflows aren’t automated
Business Central ERP addresses these pain points by unifying core ledgers, subledgers, and operations, and by automating repetitive tasks so teams can close faster and report with. By consolidating data into one Business Central accounting software for SMBs and mid-market organizations, you reduce reconciliation steps, standardize controls, and build a single source of truth. This shift not only accelerates processes but also enhances auditability and compliance.
For teams feeling the limits of standalone accounting tools, Business Central also reduces dependency on fragile Excel models, enabling governed dimensions and repeatable processes. To understand which capabilities matter most, review Folio3’s guide to the top accounting features in Business Central and the broader Business Central features overview.
Define Clear Objectives and Success Metrics
Set clear goals and quantify success from the start. Define KPIs for close timing, reporting turnaround, consolidation scope, and data quality. Map your current accounting processes to identify friction and prioritize fixes for your Business Central rollout. Business Central features an Accountant Role Center—preconfigured KPIs, tasks, and reports tailored for accountants—to keep the team aligned and on pace.
Typical objectives and measures:
|
Objective |
Success Metric | Example KPI |
| Faster month-end close | Days to close books |
Reduce from 10 to 5 days |
|
Improved AR automation |
Invoice matching rate | >98% automated match rate |
| Better visibility into cash flow | Forecast accuracy |
>95% variance reduction |
To operationalize these goals, baseline your current state, then design a phased plan aligned to your Business Central accounting solution roadmap. For example, start with core GL/AP/AR and bank reconciliation SLAs, then extend to project accounting, cost allocations, and consolidations. Build a reporting catalog that ties dimension usage to KPIs, and document ownership for each metric to ensure timely updates and governance. If you’re moving from legacy tools, explore Folio3’s perspective on ERP vs. accounting systems to set the right scope and sequencing.
Plan Data Migration and System Integration
Successful adoption hinges on clean, connected data. Data migration is the process of transferring financial and operational data from previous systems into Business Central, ensuring accuracy and completeness.
Practical plan:
- Inventory all data sources and map required data.
- Cleanse and standardize master and transactional data for consistency.
- Test extraction and import routines to validate results and avoid duplication.
- Finalize integration points with CRM, payroll, and e-commerce; address complexities early to avoid surprises post-go-live.
Business Central—and Folio3’s partner tooling—supports data cleansing to identify and resolve quality issues, streamlining conversion and reducing. For companies migrating from entry-level systems, a structured approach to templates, data validation rules, and historical data scope is essential. If you’re transitioning from Sage or similar platforms, reference Folio3’s insights on migrating from Sage to Dynamics 365 Business Central to avoid common pitfalls.
Robust integrations ensure your Business Central accounting system remains the hub for financial truth. Prioritize real-time or near real-time flows for orders, invoices, and cash receipts to keep ledgers current. Where needed, leverage middleware or native connectors, and define reconciliation checkpoints between source and target systems. Document data ownership and error-handling procedures to maintain confidence in your numbers post-go-live.
Standardize Chart of Accounts and Dimensions
A standardized chart of accounts and dimensions ensures consistent financial analysis and reliable consolidated reporting. In Business Central, dimensions are customizable tags (such as department, project, or region) that add analytical context to accounting entries.
Best practices:
- Align dimensions and posting rules with reporting requirements before go-live.
- Keep your chart of accounts lean; push analytics into dimensions rather than proliferating GL accounts.
- Establish naming conventions, default dimensions, and validation rules to enforce consistency.
Example dimension sets:
- Operational: Department, Cost Center, Product Line
- Project-based: Project, Task, Resource Group
- Regional: Region, Country, Sales Channel
Accurate posting, consistent dimensions, and clear definitions are foundational for trustworthy reporting and analysis in Business Central. Codify a data dictionary that defines each dimension, acceptable values, and ownership. Use default dimensions at vendor, customer, and item levels to reduce manual tagging, and enforce validation rules to prevent out-of-policy postings. This discipline pays dividends in your Account Schedules, Power BI models, and third‑party reporting.
For teams designing for scale, treat your dimension’s strategy as part of your Business Central accounting software for mid-sized businesses architecture. Plan for future analytics, allocations, and statutory reporting so you don’t have to re-engineer later. Align stakeholders early—finance, FP&A, operations—so the dimensions reflect how the business actually manages performance.
Automate Key Accounting Processes in Business Central
Automation helps mid-size teams reclaim time and reduce errors across:
- AP/AR automation
- Bank reconciliation
- Cost accounting
- Project accounting
- Cash flow forecasting
Specific capabilities:
- Business Central simplifies bank reconciliation by importing statements and auto-matching transactions.
- Project accounting includes WIP reporting, budgets, and project invoicing to track profitability.
- Role-based dashboards and real-time KPIs surface exceptions quickly so controllers can act.
- Copilot experiences can draft collection notes, summarize variances, and accelerate daily tasks—raising throughput without extra headcount.
Benefits of automation:
- Time savings and faster close
- Fewer manual errors and rework
- Higher reporting accuracy and auditability
As you automate, define service-level targets for recurring processes, bank recs completed daily, AP invoices posted within 24 hours, and collections activities triggered by risk scores. Leverage workflows, approvals, and email notifications to reduce cycle time and tighten controls. For a deeper look at which automations matter most in a Business Central accounting solution, see Folio3’s overview of top accounting features.
Implement Role-Based Training and Change Management
Neglecting training risks low adoption, workarounds, and missed ROI. Common pitfalls, like unclear ownership and insufficient enablement, are among the top reasons ERP projects under deliver.
Adoption plan:
- Develop custom training by role (finance, managers, operations) with job-relevant scenarios.
- Gamify adoption; designate super-users to coach peers and capture feedback.
- Provide ongoing resources, office hours, and Q&A sessions to reinforce new workflows.
Resistance to change and low user adoption can materially reduce ERP ROI post-go-live—plan for change management from day one. Consider a phased hypercare model with clear escalation paths and success criteria. Build a center of excellence that governs configuration changes, reporting standards, and new feature evaluations, ensuring your Business Central accounting system continues to evolve with the business.
To ensure messaging is consistent, supplement training with quick-reference guides, short videos, and in-app tips. Track adoption through usage analytics, and iterate on training where friction appears (e.g., complex posting routines, consolidation steps, or new dimensions).
Optimize Reporting and Consolidation Workflows
Native Business Central reporting—Account Schedules, Standard Reports, Analysis Views, and Excel integration—is strong for transactional analysis but often needs enhancement for multi-entity, multi-currency, and formatted board-ready reporting. Multi-entity consolidation refers to combining financial results from multiple business units, subsidiaries, or companies for a unified view.
Research observations:
- Built-in reporting excels at transactional detail but can struggle with formatting and multi-entity consolidation.
- Many teams export to Excel for advanced formatting and pivots.
- Third-party tools can provide faster consolidated reporting and self-service analytics—consider Folio3’s offerings for enhanced outcomes.
Comparison: native vs. third‑party reporting
|
Capability |
Native BC (Account Schedules, etc.) | Third-Party |
| Transactional drill-down | Strong |
Strong |
|
Multi-entity consolidation |
Basic to moderate | Advanced with automation |
| Multi-currency consolidation | Supported, manual setup |
Streamlined with templates |
|
Pixel-perfect/board formatting |
Limited | Robust formatting and distribution |
| Self-service model updates | Moderate |
Low-code, finance-owned |
|
Scheduling/bursting |
Limited |
Advanced scheduler and bursting |
To design a scalable reporting stack, start with disciplined dimensions and Account Schedules, then consider specialized tools for consolidation and board-ready output. Establish a governed semantic layer so finance can own report logic without constant IT support. Whether you remain native or extend with third-party tools, the goal is the same: timely, accurate insights to guide decisions across your Business Central accounting software for mid-sized businesses portfolio.
Ensure Post-Go-Live Support and Continuous Improvement
Your Business Central journey doesn’t end at go-live. To sustain momentum and value:
- Create a support plan with training refreshers, process reviews, and enhancement sprints.
- Define a stabilization window, named support contacts, and escalation paths.
- Schedule quarterly reviews to align the system with evolving business needs and regulatory changes.
Post-implementation support is critical to avoid underutilized features and creeping inefficiencies. Regular check-ins surface new pain points early, allowing you to optimize processes before bottlenecks grow. Monitor close durations, backlog trends, and exception rates to identify where automation, revised dimensions, or new reports can deliver quick wins.
Over time, revisit your roadmap: add entities, expand project accounting, or integrate advanced forecasting. Because Business Central is cloud-based, Microsoft’s continuous release cycle brings new features—be ready with a cadence to evaluate and adopt what benefits your accounting processes most.
Folio3 as Business Central Implementation Partner for Accounting
Folio3 brings 15+ years of ERP and integration experience to help mid-sized finance teams modernize with confidence. We map processes, standardize dimensions and controls, design automation, and guide change management to help you realize value quickly, and continue improving. From discovery to data migration, training, reporting, and post-go-live optimization, our outcomes-driven approach keeps finance in control. Explore how we deliver Business Central for accounting and beyond.
As a partner focused on Business Central accounting software for SMBs and mid-market organizations, we emphasize measurable outcomes: faster closes, higher automation rates, improved cash forecasting, and reliable consolidations. Whether you’re standardizing on a single entity or scaling across multiple subsidiaries, we help you implement a Business Central accounting solution that fits your governance model and growth trajectory.
Frequently asked questions
How can I reduce the time it takes to close the books using Business Central?
Automate AP/AR, streamline bank reconciliation, and utilize real-time dashboards to flag exceptions early. Standardized processes and built-in tools significantly decrease manual work and errors. Start by setting a target for days-to-close, then use workflows, approvals, and auto-matching to remove manual steps.
What are best practices for handling multi-entity and multi-currency consolidation?
Standardize dimensions and posting rules, leverage Business Central’s consolidation features, and consider additional tools when advanced formatting or drill-down is essential. A clear dimension strategy, consistent exchange rate updates, and reconciliations between subsidiaries and the parent are crucial.
How can budgeting workflows be streamlined with Business Central?
Integrate budget data from Excel, standardize templates, and automate validations to minimize manual checks and cycle time. Use dimensions to tie budgets to responsibility centers, departments, and projects—improving accountability and variance analysis. As your organization grows, these practices ensure your Business Central accounting system supports agile planning.
What steps help avoid common configuration and permission issues?
Define roles clearly, review access regularly, and rely on Business Central’s role-based security to prevent data access and reporting gaps. Establish periodic permission audits, segregate duties for sensitive processes (payments, posting, and approvals), and document changes through a controlled governance process.
How do I improve data quality and reporting accuracy in Business Central?
Enforce consistent dimension tagging, cleanse data before migration, and standardize reporting definitions across teams. Adopt validation rules and default dimensions to reduce manual errors, then iterate using usage analytics and stakeholder feedback.
