What Is Microsoft Accounting Software: A Detailed Guide

What Is Microsoft Accounting Software: A Detailed Guide-feature image
April 14, 2023 10 Min read

Summary: Microsoft Accounting Software is a comprehensive accounting solution that is specially designed to meet the growing needs of small to medium-sized businesses. Let’s learn more about Microsoft Accounting Software along with its features and pricing in this article.

As your business grows, the complexity of your financial data also increases. Managing business accounts through spreadsheets can be time-consuming and can increase the risk of errors. Therefore, growing businesses require a scalable accounting solution to handle financial data efficiently.

To manage complex financial data, business owners need to consider using accounting software as a more effective solution than spreadsheet accounting.

Accounting software offers unique features that will help you in optimizing your business. From invoicing and billing to tax calculations and project management, accounting software is important for managing your business’s financial data.

What is Microsoft Accounting Software?

Microsoft Accounting Software is designed to fulfil the fiscal management needs of businesses. The robust accounting software has a user-friendly interface that enables the users to stay up to date with all the key business insights.

Moreover, you can control and manage the entire life cycle of your fixed assets, that is from acquisition to disposal. Using the multi-currency support feature, you can expand into the international market and minimize the complexity of global transactions.

Microsoft Accounting Software Introduction: What is Microsoft Dynamics 365?

Dynamics 365 Microsoft is a business application platform that plays a significant role by combining the components of enterprise resource planning and customer relationship management in accordance with AI tools and productivity applications.

What is Microsoft Dynamics GP: Microsoft Accounting Software

Dynamics GP, also known as Great Plains Software, is a modular ERP system comprising financial management, accounting, inventory management, supply chain, etc. It also has features for project management, project accounting, manufacturing, operations, sales, human resources, and payroll. Moreover, the software helps track business processes throughout the company.

Microsoft Dynamics GP is a robust accounting software that can help with financial management processes, including cashflow management, accounts receivable, fixed assets, chart of accounts, and general ledger.

Dynamics GP vs Dynamics 365 Business Central

Dynamics GP is a legacy product that is developed for on-premises deployment, while on the other hand, Microsoft Dynamics 365 Business Central is built for the cloud. Since Business Central is developed as a cloud solution, it has no associated hardware requirements or costs.

Microsoft Dynamics 365 Business Central is known for its dimensional accounting feature. By utilizing dimensions, you can categorize and label data by efficiently examining various expenses, such as travel expenses, across multiple departments.

To make the battle easy for you, we have curated a guide using which you can be informed about the type of Microsoft Accounting system that will make the best choice for your organization.

Comparison Between Dynamics GP and Dynamics 365 Business Central

Product FeatureDynamics GPDynamics 365 Business Central
HostingOn-PremisesCloud-Based
Add-On OptionsLarge Pool of Ad-On OptionsRapidly Growing Pool of Apps
Power BI-IntegrationYes- Requires some effortYes- Requires very little effort
Financial ReportingManagement Reporter and Jet ReportsSupports account schedules and analysis views.
GL Account StructureMultiple segments for structureDimensional chart of accounts
BudgetingSetup and import excel-based budgets.Create numerous budgets for financials, revisions, analysis, and dimensional reporting.

Major Features of Microsoft Dynamics 365

Major Features of Microsoft Dynamics 365

Microsoft is one of the biggest industry leaders in the technology field and offers a range of extensive features that make Dynamics 365 stand out. 

  • Optimising Customer Relationships

Companies can easily track every customer interaction using the Activity Log Feature. By analysing the collected data, the platform generates relevant suggestions for users, which helps them provide an improved customer experience.

  • Sales Insights

The ability to offer complete and vast information is one of the best features of Microsoft Dynamics 365. The relationship insight feature will help the user carefully analyze the vast volumes of data. Moreover, with various analytical algorithms in place, receiving and accessing the most relevant customer information at any point is possible.

  • Smart Search

Microsoft Dynamics 365 enables users to retrieve information from records, contacts, and various other stored opportunities. This feature also helps in saving time for the user. 

  • Mobility

Microsoft Dynamics 365 offers a comprehensive dashboard facility that makes the mobile application of Microsoft Dynamics 365 interesting. With an intuitive interface, users can access all the leads and contacts seamlessly.

Moreover, this feature will allow managers to access real-time customer interactions, giving them a complete overview of the sales channel.

  • LinkedIn Sales Navigator

LinkedIn Sales Navigator is a vital tool that allows users to search for leads, accounts, and opportunities while providing important insights and recommendations to sales professionals.

Key Features of Microsoft Dynamics GP

Key Features of Microsoft Dynamics GP

Microsoft Dynamics GP can play a significant role by helping organisations streamline their business processes, improve productivity, and make informed decisions based on real-time data. Some of its key features are:

  • Project Management

This feature allows users to easily manage and track project budgets, schedules, resources, and tasks, helping organisations improve their project delivery and profitability. This feature further helps by providing real-time visibility into project management and enabling collaboration among the team members.

  • Accounting Management

Managing your accounting-related tasks becomes hassle-free, granting you access to a highly efficient General Ledger Account. General Ledger Account is a robust analytical tool that will simplify your entire analytical process. The General Ledger Account will help users manage their workflow efficiently with its productivity systems.

  • Human Resource Management

When it comes to human resource management practice, Microsoft Dynamics GP can help the organizations manage their employees’ data efficiently. The user can perform multiple tasks effortlessly with its customizable tools. Moreover, users can also schedule various activities and tasks, hire employees, record and analyze business performance.

  • Bank Management

Microsoft Accounting Software provides the flexibility to attach multiple cheque books to your bank account. Also, there is an option to integrate them electronically using a mobile phone or PC. These cheque books can enhance your efficiency in withdrawing or making payments.

  • Supply Chain Management

It is possible to track inventory stock levels and associated costs. Microsoft Dynamics Accounting generates a report regularly that contains all the necessary information about the products and stocks in the inventory. This report is sent to you via email to assist with monitoring and maintaining accurate records.

Pricing Comparison: Microsoft Dynamics 365 and Microsoft Dynamics GP

Microsoft Dynamics 365 and Microsoft Dynamics GP have different pricing structures.

Microsoft Dynamics 365 is a cloud-based software solution that comes with a modular pricing model. However, the basic Microsoft Dynamics 365 plan is priced at INR 4,790/month.

On the other hand, Microsoft Dynamics GP is an on-premises software solution that offers a perpetual licensing model. It is priced at INR 5,745/user/month.

How Can Microsoft Accounting System Transform Business?

For a business to be successful, you should thrive to maintain an up-to-date ERP software solution. Well, you can achieve this with the help of Microsoft Accounting Software. A comprehensive software solution that has the power to transform your business with the help of unique features and modules. 

  • Enhanced Data Security and Protection

In today’s world, it is common for hackers to gain unauthorized access to important business files by cracking codes. Microsoft Accounting system has robust security features that will play a key role in protecting and safeguarding the user’s financial data from unauthorized access.

  • Effective Financial Management

With an extensive Microsoft Accounting system, users can seamlessly manage all their finances in one place. The accounting system will play a key role in generating reports and insights on financial data that will help business organizations make informed decisions about their business strategies.

  • Finance Management on the Go

With Microsoft Dynamics GP, you get a mobile application that grants access to all the software’s features. This allows you to utilize the ERP solution on smartphone from any location and monitor your business at any time and place.

Benefits of Using Microsoft Accounting Software

Microsoft Accounting Software provides businesses with comprehensive tools for managing financial data and operations, streamlining financial processes, improving visibility, and enhancing collaboration. Listed below are some of the essential benefits of using Microsoft Accounting Software. 

  • Streamlined Financial Operations

Microsoft Accounting System can help various business organizations streamline their financial operations across different departments by combining financial data from different sources and automating various processes such as batch invoicing, saving the accountant’s valuable time and energy.

  • Real-Time Data Analysis

Using the real-time data analysis feature, users can easily identify the latest data trends over time. This will further make it easier for the accountants to make timely and accurate decisions about the future of their business.

  • Minimises the Scope for Financial Errors

Different types of errors in accounting or financial management can lead to irreparable damage like profit reduction, loss of clients, and provision of inaccurate reporting. These errors can cause significant harm to a business’s long-term growth and success.

However, Microsoft Accounting software will help minimize these errors. By properly using the software, accountants can make their accounting tasks simple, and they will be able to perform complex calculations easily.

  • Boosts Your Financial Security

Financial records are considered confidential due to the sensitive information, such as vendor and third-party names, transaction details, invoice IDs, account numbers, cash balances, etc. 

Microsoft accounting software typically implements robust security measures to safeguard the financial data that a business or its clients manages. These measures guarantee that the information is stored correctly and that only authorized individuals can access it.

Alternatives of Microsoft Accounting System

As technology is continuously evolving, many organisations and companies are looking out for accounting systems specially tailored to meet an organization’s specific needs.

While Microsoft accounting systems are known for their reliability and efficiency, some companies are turning to alternative solutions due to various factors, such as cost, customization, industry-specific needs, user interface, and support, so if you are looking for alternatives, we have listed down few below.

  • NetSuite

NetSuite is comprehensive Enterprise Resource Planning (ERP) software that supports business growth and success by optimising various operations. NetSuite ERP facilitates the automation of corporate operations and activities in a superior cloud platform, providing users with advanced features.

One of its notable strengths is its ability to provide a 360-degree perspective of client interactions and end-to-end company operations.

  • Sage Intacct

Sage Intacct Accounting is a cutting-edge accounting and financial management software on a cloud-based platform. This software is designed to enhance your business success by offering a range of accounting functionalities, including tax filings, payroll, and inventory tracking tools across various industries. This open-source software can easily integrate with other applications to provide greater connectivity and impact.

  • SAP

SAP, which stands for Systems, Applications, and Products in Data Processing, is a well-known software tool that provides comprehensive ERP (Enterprise Resource Planning) services. As one of the most extensively employed ERP software options, SAP features over 100 modules to manage every aspect of your business management process.

By leveraging this tool, you can establish a centralised system that enables seamless data interaction and sharing among all departments within your organisation.

Conclusion

Microsoft Accounting Software has been a reliable and efficient tool for many businesses for years. However, with the emergence of newer and more advanced alternatives, it’s worth exploring your options to find the best fit for your business needs.

FAQs

  1. What is Microsoft Accounting System?

    Microsoft Accounting Software is comprehensive financial management software designed to cater to businesses of varying sizes. This intuitive software offers precise financial information, empowering businesses to make informed decisions based on accurate data.

  2. Is Microsoft Dynamics an Accounting Software?

    Microsoft Dynamics is an ERP software that streamlines finance management along with sales, marketing, supply chain, service management and other business processes.

  3. Which Microsoft Office is Used for Accounting?

    Microsoft Dynamics 365 is used for accounting. It offers tools for accounts payable and receivable, general ledger, fixed assets, cash and bank management, budgeting and forecasting, and financial reporting. The platform streamlines accounting processes, enhances accuracy, and provides real-time financial insights, allowing businesses to make informed decisions.

Written by Ridhi Dogra

With a master’s degree in journalism and mass Communication, Ridhi started her journey as a content writer 4 years ago. She is working with TechJockey as a Senior Technical Content Writer. She has significantly contributed to different fields, including fashion, lifestyle, education, travel, and food. Her writing is... Read more

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