The Hidden Costs Behind Microsoft Business Central Pricing

In today’s rapidly changing and increasingly digitizing market, companies looking to scale need the right business solution to simplify every element of what makes their organization successful. Ready to revolutionize your accounting and financial management? To streamline your sales, operations management, customer service management, project management, or supply chain management? Dynamics 365 Business Central is the Enterprise Resource Planning (ERP) system that provides a single, unified source of truth for all your data: unlocking the synergy to be found in its wide range of rich functionalities—like integrated CRM capabilities—and the flexibility of the cloud. 

But for businesses considering embracing Business Central, it’s important to safeguard that investment by being prepared and ensuring you’re making the right purchase, at the right price, for your organization.

Why Dynamics 365 Business Central?

Typically purchased via a Microsoft Dynamics partner, Dynamics 365 Business Central has become a popular choice of ERP system among small and mid-sized businesses because it’s easy to use, can be customized to the needs of each organization, streamlines business processes, and helps you make informed decisions based on real-time data. 

The value of implementing Business Central is crystal clear for most organizations considering it. However, in order to ensure ROI and maximize that business value, it’s crucial to budget appropriately and understand Microsoft Business Central pricing before heading into any ERP project. 

Understanding Microsoft Business Central Pricing

For a company moving from accounting software like QuickBooks or upgrading from Dynamics NAV, Microsoft Business Central serves as a flexible, comprehensive business management solution that allows you to choose what functionality you need, pay only for what you use, and customize your solution with plug-and-play productivity and industry apps. Your total estimated spend on a Business Central investment will depend on three key factors. These include implementation costs, licensing fees, and any added costs related to additional services. 

Here’s a breakdown of what to expect from Microsoft Business Central pricing.

1. Upfront Spending on Software Implementation

Implementation of an ERP like Business Central typically includes system setup and configuration, migration of legacy data, and user training. The overall cost of implementing Dynamics 365 Business Central can vary depending on a variety of factors, including but not limited to your business’ size and complexity, the number of users you expect to need access to the system, the level of customization required, or any costs related to ongoing support and maintenance. 

It may be helpful to keep in mind that starting with a basic configuration, prioritizing your most critical business needs first, and leveraging existing technology investments can all help reduce implementation costs.

2. The Price of Licensing 

Microsoft Business Central pricing uses a subscription model where you pay a monthly license fee for each user. You can invest in one of two license types—Dynamics 365 Business Central Premium or Business Central Essentials—and add Team Member licenses for your preferred number of users. Note that you cannot combine a premium license and an essentials license in the same deployment.

According to the latest data from Microsoft, Business Central Essentials is priced starting at $70 per user per month, while Business Central Premium will run you about $100 per user per month. These subscription licenses are assigned to individual users, with each user required to have their own (which cannot be shared). 

Be sure to consider how many full users, or power users, will need access to complete Business Central functionality, and how many you can tack on as additional users, or Dynamics 365 Business Central Team Members, at a lower price of just $8 per user per month. 

The biggest consideration to keep top of mind is assessing what kinds of tasks each user will need to perform. For example, Team Members often only need to complete activities considered light tasks (like expense entry or HR record updates). Therefore, they don’t require full access to the system.

3. The Cost of Additional Services for Better Customer Experiences

If—in addition to the advantages of implementing Business Central—you also want core sales force automation that works with Microsoft 365, to empower team members to discover insights hidden in your data, or the power to extend or customize the apps you already use, you may want to consider spending a bit more on additional services. 

This could include Dynamics 365 Sales Professional, Power BI, or Microsoft Power Apps. These all serve as extensions of and enhancements to your Business Central investment. 

The Right Fit at the Right Price for Scaling Businesses

Investing in an ERP system is a huge decision for your business, and one that can have widespread implications. It can also be time-consuming and expensive if not done correctly. This is why it’s critical to fully understand how Microsoft Business Central pricing works.

If your ERP system is implemented properly and your budget is set intentionally, you will not only be more productive. You’ll also likely find cost savings in lots of unexpected places and boost your ROI beyond what you thought possible.