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How to Use Microsoft Dynamics for Your Accounting Team

Posted by Alanna Friedberg on Nov 28, 2023 10:00:00 AM

microsoft dynamics accountingAs the business landscape evolves, accounting teams encounter new challenges in managing financial data. They also must navigate various regulatory requirements. Company leaders often tap them as a resource to help with organizational decision-making. Meeting these demands requires the help of future-facing technology. Microsoft Dynamics accounting solutions like Business Central provide organizations with powerful financial management capabilities.

Why Use Microsoft Dynamics 365 for Accounting?

Microsoft Dynamics' robust accounting capabilities let companies unify all financial and operational processes across the organization. Accounting teams gain the ability to simplify complex financial processes involving accounts payable and accounts receivable. They also have an easier time with general ledger management thanks to automation that reduces manual data entry. That minimizes the potential for human error and improves data accuracy.

Modules like Microsoft Dynamics 365 Business Central provide a wide range of features that help accounts be more efficient with their time. The enterprise resource planning (ERP) software can automate tasks like batch invoicing. Other processes accounting teams can automate through Dynamics 365 accounting functions include:

  • Payroll
  • Payments
  • Invoice Approvals

One of the benefits of going with a cloud platform like Microsoft Dynamics is that it provides more robust features than those found in solutions like QuickBooks and FreshBooks. Dynamics 365 facilitates the flow of information from multiple organizational data sources, making it possible to view all financial data from a centralized workspace.

Another benefit of using Microsoft Dynamics 365 accounting features is that it syncs with other solutions within the Microsoft environment. Users can connect modules within Business Central to other platforms like Microsoft 365, Teams, and Power BI. Business owners can provide accounting teams with a one-stop shop for handling all operational accounting and financial processes.

Top Microsoft Dynamics 365 Accounting Features

Dynamics 365 applications like Business Central are a next-level solution most suited for small and medium-sized companies. One huge benefit of adopting Business Central for accounting functions is there’s no limit to the number of users allowed on the platform. Businesses can ensure that every accounting team member has the access they need to perform their job functions.

Let’s look at some of the capabilities provided by Dynamics 365 for accounting teams.

1. General Ledger

Accounting users can set up and post account charts, general journals, and recurring journals. The user-friendly interface simplifies tracking fixed assets and other transactions like acquisitions, depreciations, and disposals. Dynamics 365 Business Central also helps handle inventory management, operational costs, and department budgets. The flow of real-time data makes it possible to tap into actionable information quickly through customized dashboards and reports.

Auditing is more intuitive in Business Central as the application automatically assigns audit trails and descriptions to every transaction. Another benefit of using Dynamics 365 is that it allows users to set up specific transaction reason codes, which they can add to general ledgers to boost paper trails.

Business Central gives companies a centralized view of every owned brand by supporting the amalgamation of financial info from various owned entities. It lets accounting teams integrate bank statements and perform automatic reconciliation. In addition, businesses can track and manage multiple accounts and use multiple currencies.

2. Automated Workflows

Users can set up customized workflows to handle expense approvals. That lets the system automatically route expense reports submitted by employees to the appropriate manager. The same can be done for invoice approvals by establishing predefined workflows. Approvers receive a notification when there’s an invoice requiring their attention. They can log into Dynamics 365 to approve or reject the invoice.

Companies reliant on recurring revenue models can use Dynamics 365 accounting workflows to generate and deliver recurring invoices automatically. Recipients receive billing promptly without requiring any manual intervention. Accounting teams can set up Dynamics 365 to send automated payment reminders for overdue notices.

Vendor communication becomes easier by automatically sending communications like purchase orders, order confirmations, and payment notifications. In addition, Dynamics 365 can automatically handle sending messages to customers regarding payment receipts.

3. Improved Security

Microsoft Dynamics 365 uses encryption technology to protect accounting data stored in a data center. That means all connections between customers and their dedicated data center get encrypted using industry-standard TLS.

The platform also uses role-based security for controlling access to different parts of the system. Users must have a specific role assigned to gain access to forms, entities, and views associated with their job responsibilities.

Dynamics 365 accounting features use Azure Active Directory (Azure AD) for authentication and identity management. That way, businesses can enforce strong authentication policies and single sign-on (SSO) for all company users. Companies can add an extra layer of security by enforcing multi-factor authentication (MFA). That forces users to verify their identity using an additional factor like a biometric to gain access to Dynamics 365.

4. Scalability

Dynamics 365 grows to accommodate the needs of a company. Businesses can start with modules like Business Central and then expand their subscription to include other modules like Dynamics 365 Finance. The latter is capable of accommodating organizations with over 500 users. That lets organizations manage financial operations tied to areas like project management and sales.

Dynamics 365 Accounting Considerations

Businesses should define the objectives and goals of what they want to accomplish with Dynamics 365 accounting features. It helps to work through this process by teaming up with a Microsoft partner like Internet eBusiness Solutions (IES). They can help you tailor the implementation to fit your business requirements.

From there, companies must develop a data migration plan to move existing accounting data to Dynamics 365. Think about how to keep historical data accurate and intact as it’s moved to the new system.

Think about how to train your accounting team to become proficient in the new Dynamics 365 accounting system. Allow users enough time to become comfortable with the product to help encourage adoption among the entire team.

Boost Your Accounting Efforts With IES

Upgrading the technology provided to accounting teams helps companies stay competitive in today’s interconnected business environment. IES helps companies gain greater control and operational efficiency with the right technology solutions. Contact one of our experts to learn how we can boost your digital transformation efforts.

Top 5 Hidden Features of Dynamics 365 Business Central

Topics: Microsoft Dynamics