With Microsoft ending mainstream support for Dynamics SL in January 2024 and extended support in July 2028, many organizations are evaluating their ERP strategies. Transitioning to Dynamics 365 Business Central offers a modern, Cloud-based ERP solution with enhanced capabilities. This blog compares 11 core capabilities of Dynamics SL and Business Central to guide your migration journey.
1. Financial Management
Dynamics SL offers financial modules designed for project-driven organizations. The software includes tools such as general ledger, accounts payable, accounts receivable, cash management and multi-currency support. These modules allow finance teams to track transactions, manage vendor and customer balances, and close books on a periodic basis. However, the system relies heavily on batch processing, which slows down financial visibility and forces your teams to wait until batches post before reviewing reports.
You’ve probably grown accustomed to manual workarounds if you’re still using this tool. For example, SL users must correct entries in separate processes or wait for the system to post results before they can reconcile balances. While the core financial features remain solid, the dated architecture makes it difficult to support real-time decisions or automate routine tasks. Another frustration is that adding new reporting dimensions or tracking across multiple business units requires significant customization or the use of external tools.
Dynamics 365 Business Central replaces these outdated workflows with a modern, real-time approach to financial management. Transactions can post immediately and are visible across the system. Teams no longer need to wait for batch processing.
Business Central also handles multiple legal entities with built-in consolidation tools and automated intercompany postings. What would happen if your organization no longer needed to rely on external spreadsheets or custom scripts to create consolidated financial reports? BC supports multiple currencies and automatically manages exchange rate updates and gains or losses.
In addition, Business Central integrates directly with Microsoft 365 applications. Users can export real-time financial data into Excel with one click or build dashboards in Power BI without involving IT. Your reports can remain updated without manual refreshes or duplicate work.
2. Project Accounting
Microsoft built Dynamics SL with strong project accounting features catering to industries like construction, government contracting and professional services. The software allows end-users to define projects with budgets and cost categories while tracking labor and materials. With SL, organizations can manage cost-plus, time and materials, or fixed-fee contracts. The system does a nice job supporting detailed audit trails and enforces compliance with cost accounting standards, which made it a preferred solution for firms managing complex, long-term projects.
However, companies often struggle with SL’s visibility and usability. Project managers must rely on finance teams to generate reports or interpret accounting data, making it harder to track real-time performance. Updating budgets or correcting misclassifications often requires some back-end manual adjustments. Project billing also depends on your manual efforts, requiring staff to review spreadsheets and validate transactions before they can generate invoices. As projects become more dynamic, SL’s rigid structure and batch-driven processing slow response times and introduce errors to project management.
Dynamics 365 Business Central brings a more agile, integrated approach to project management and job costing. This software can support job planning lines, resource allocation, time tracking and task-based budgeting. Users can create and manage projects with clear cost categories and assign resources without relying on external tools or IT intervention. Every transaction automatically links to the appropriate job and task, whether it’s time entry, material usage or subcontractor costs.
Business Central improves project visibility by updating job cost and budget data in real time. As soon as someone logs time or a purchase order posts, the project reflects that change. Managers no longer need to request reports from finance to see granular detail on project performance. With BC, they can view actuals and budget variances from the same screen without waiting for end-of-month reconciliations.
Project billing is also more efficient. Business Central automates invoicing based on billing rules or other milestones. The system can pull approved data from each job and prepare invoices that reflect the contract type and terms. These new automated features reduce billing cycle time and minimize the risk of errors or missed charges.
Business Central also links specific project data with financials, inventory and purchasing. This feature eliminates data silos. For example, when a project requires materials, the purchasing module connects the PO directly to the job. Once goods are received, the cost flows automatically to the project ledger. Similarly, payroll and time-tracking tools feed project cost data into the accounting system without manual re-entry.
3. Reporting and Analytics
Dynamics SL offers a traditional reporting framework that relies heavily on static reports, SQL queries and the assistance of third-party tools. Most SL users depend on prebuilt reports from the system’s Report Writer or generate financials through Management Reporter or FRx. While these tools provide the basics, customizing reports requires technical expertise from IT or outside consultants. Cross-module reporting, where you blend project data with financial metrics, requires time-consuming data exports and manual manipulation in Excel.
Because SL reports cannot update in real time, your decision-making relies on financial snapshots rather than current performance data. Managers must wait for period closes or rely on emailed reports that quickly grow outdated. When errors occur, as they inevitably do, your users must reprocess transactions before reporting if they want to increase their accuracy. These delays can reduce organizational confidence in the data and limit your ability to respond proactively.
Dynamics 365 Business Central turns these outdated reporting workflows into a real-time, self-service experience. This Cloud-based system continuously updates ledgers and dimensions as transactions post so end-users can generate up-to-the-minute reports anytime. Built-in account schedules and analysis views make it easy to slice data by department, customer, project or any user-defined dimension without writing a single SQL query.
Users can view data directly in Business Central or export to Excel with live data connections. These connections allow Excel files to refresh automatically, so teams never work from outdated reports. Finance, operations and project managers can instantly access the metrics they care about without waiting for IT or building complex workarounds.
Business Central also integrates natively with Power BI. Users embed dashboards into the Business Central interface or launch reports in Power BI for deeper insights. These dashboards include visual breakdowns of cash flow, sales performance, job profitability and more. Custom KPIs and drill-down views help your stakeholders move from summary-level metrics to transaction-level detail in seconds.
Because Business Central uses dimensional accounting, it eliminates the need to create separate GL accounts for each department or project. Instead, users assign dimensions during transaction entry and can use those tags to drive more flexible reporting. For example, a CFO can build a report that compares profitability by service line across multiple locations without touching the chart of accounts.
The platform also supports role-based dashboards. Each user sees tailored insights based on their role. For example, controllers can see month-end financials, project managers can view budget burn rates and sales managers can see pipeline performance. Targeted visibility increases team engagement and reduces time spent digging for information.
4. User Interface and Experience
From a user experience perspective, there’s a clear line in the sand between traditional software and modern tools. For the past two decades, software has become increasingly adept at prioritizing users’ needs, behaviors and expectations. Modern UX focuses on the end-user by creating more intuitive and engaging technology interactions.
Dynamics SL presents a traditional, menu-driven interface that reflects its on-premises architecture. While functional, the layout often feels rigid and dated by modern standards. Users navigate through nested menus, open multiple windows for different tasks and frequently toggle between modules to complete simple workflows. For new employees, the learning curve can be steep. Even experienced users often rely on cheat sheets or procedural documentation to navigate the system efficiently.
The user experience in SL prioritizes transactional processing over usability. There is limited contextual information, and your end-users must frequently switch screens or export data to Excel to complete a task. The lack of personalization adds to the challenge. Users see the same layout regardless of their roles or daily responsibilities. Customizing the experience requires back-end configuration or third-party solutions.
By contrast, Dynamics 365 Business Central delivers a modern, streamlined user interface designed for speed and clarity. From the moment users log in, they see a role-based dashboard personalized to their needs. A project manager can see open tasks and time entries. A finance user can view cash balances or overdue receivables in real time. Each role center automatically surfaces the most relevant actions and insights for that user’s responsibilities.
Navigation throughout the software follows a clean, intuitive structure. Users can search for any page, report or setting using the global search bar, eliminating the need to memorize menu paths. When working within a task, related information appears alongside the primary record — vendors display payment history, customers show outstanding invoices, and jobs show budget consumption — all without leaving the screen.
Business Central also supports personalization. Users can adjust columns, reorder fields, hide sections and bookmark frequently used pages. These changes require no code and are applied instantly. This flexibility allows users to tailor the system to their preferences and workflows without affecting others.
Users can access Business Central from any browser, tablet or mobile device, because it runs in the Cloud. The responsive interface adjusts automatically to screen size, making it easy to check projects or enter time on the go. Built-in keyboard shortcuts and context menus further speed up daily tasks and reduce the number of clicks needed to complete a process.
Business Central also minimizes system fatigue. Users can open multiple tabs and multitask without performance issues. Real-time feedback and proactive notifications help users stay on top of critical items without scanning through long reports or logging in and out of different modules.
5. Deployment and Accessibility
Dynamics SL was developed for a different era, where on-premises deployment was often the only viable option. Most organizations still using SL maintain the system on local servers, with internal IT teams responsible for managing backups, user access, and system performance. This model demands significant infrastructure investment, ongoing maintenance, and regular coordination with tech consultants to implement patches or perform upgrades. Remote access is limited and often requires workarounds such as VPNs or Citrix, which introduce performance and security concerns.
Now that Microsoft has ended support for Dynamics SL, organizations no longer receive security patches or feature enhancements, leaving these systems increasingly vulnerable and outdated.
Dynamics 365 Business Central operates entirely in the Cloud, eliminating the need for on-premises infrastructure. Microsoft hosts the system in Azure data centers, handling server maintenance, data security, backups, and updates. The intuitive Cloud-native architecture gives your end-users access to the full system from any browser or mobile device with no additional setup. Whether working from a desktop in the office or a tablet on the road, users log in with secure credentials and experience consistent performance.
Deployment is simpler and faster. Instead of planning multi-month infrastructure rollouts, organizations can activate Business Central within days. Microsoft pushes regular updates with security patches and new features so the platform stays current without disrupting operations. IT teams focus on strategic initiatives instead of system maintenance.
Modern software can improve accessibility across the board. Business Central’s responsive design allows users to interact with the platform on desktops, laptops, tablets, or smartphones without sacrificing functionality. Mobile workers can submit timesheets, approve purchases or check financial data without returning to the office. The system also integrates with Microsoft 365, so users can launch Business Central directly from Outlook or Teams and perform tasks using these familiar tools.
Microsoft enforces enterprise-grade security protocols, including multi-factor authentication, role-based access, encryption and regulatory compliance with global standards like GDPR and SOC 2. Companies no longer need to manage local firewalls or data loss prevention policies; those protections are built into the platform.
6. Integration Capabilities
Dynamics SL provides limited out-of-the-box integration with external systems. Most connections, whether to CRM platforms, payroll systems, reporting tools or eCommerce solutions, require custom development, or middleware. Integrating new systems often means working with a consultant to write SQL scripts or build custom connectors. This kind of fragmented approach increases the risk of data duplication and inconsistent reporting.
The truth is that SL’s architecture was never designed for real-time integration. When data moves between systems, it often does so in batches, which means business users operate with outdated information. As more departments adopt specialized software such as marketing automation, modern procurement systems or customer portals, SL’s lack of native connectivity becomes a growing limitation.
Dynamics 365 Business Central removes these constraints by offering built-in integration across the Microsoft ecosystem and supporting modern APIs for third-party applications. The software connects natively with Microsoft 365 tools like Outlook, Teams, Excel and SharePoint. Your users can create quotes or purchase orders directly from within Outlook, or chat in Teams while viewing live financial or inventory data from Business Central.
This level of integration extends to other Microsoft Cloud services, including Power BI for analytics, Power Automate for workflow automation and Dataverse for sharing data across business apps. These connections require no custom coding and follow secure, scalable protocols.
Beyond Microsoft’s tools, Business Central supports thousands of prebuilt apps and extensions available through AppSource. These apps connect Business Central to payroll providers, shipping carriers, eCommerce platforms, vendor portals and more. For businesses with specialized needs, Business Central’s API framework allows developers to develop secure, event-driven integrations operating in real-time.
Because Business Central runs in the Cloud, data flows continuously between systems. Inventory updates from the warehouse, time entries from the job site, and customer payments post instantly. These features eliminate the lag common in SL’s batch processing.
7. Customization and Extensibility
Dynamics SL supports customization, but the process is often costly, complex and difficult to maintain. Customizations typically involve modifying source code or building custom screens and reports using outdated development tools. Once these changes are in place, they introduce technical debt, a long-term burden that must be addressed with every upgrade. As a result, many organizations avoid applying updates altogether, fearing that new releases will break existing functionality or require extensive retesting and rework.
This situation creates a cycle where businesses either freeze their technology stack or continue investing in workarounds that deepen their dependence on legacy code. Even small changes, such as adjusting a field on a screen or altering a report layout, may require developers.
Dynamics 365 Business Central takes a different approach. It supports extensibility through a modular, app-based framework. Instead of modifying the base application, developers build extensions that sit on top of the core system. These extensions apply functionality or integrate with other systems without altering the original codebase.
This architecture protects the system from being “broken” during upgrades. When Microsoft issues a platform update, extensions remain isolated, allowing businesses to take advantage of new features and security patches without compromising custom work. It also simplifies testing and rollback procedures.
Power users can also make many changes without writing code. Business Central allows users to personalize page layouts, rename fields, add shortcuts and hide sections. These adjustments enhance usability and align workflows with actual business processes, without impacting other users.
Additionally, Business Central integrates with Microsoft’s Power Platform, which opens the door to low-code and no-code customization. Users can build custom workflows in Power Automate, design forms in Power Apps, and create interactive dashboards in Power BI without changing the ERP system itself.
8. Security and Compliance
Dynamics SL places the burden of security entirely on your organization. IT teams must internally manage firewalls, user permissions, data encryption and backup strategies. Compliance with industry standards such as HIPAA, SOX or GDPR requires custom configurations and documentation. For organizations with limited IT resources, this creates exposure to security gaps.
Since SL is an on-premises system, companies must also plan and execute disaster recovery strategies. If hardware fails or data is lost, recovery depends on how well your internal teams managed backups and prepared for system redundancy. The risk is higher now that Microsoft no longer supports SL with security patches or system updates. The platform will only grow more vulnerable to emerging threats over time.
Dynamics 365 Business Central significantly reduces this risk by shifting security responsibilities to Microsoft’s Cloud infrastructure. The platform runs on Microsoft Azure, which includes multilayered protection across physical data centers, networks and application services. Microsoft invests over $1 billion annually in cybersecurity, giving Business Central users access to enterprise-grade protection by default.
Business Central includes built-in encryption for data at rest and in transit. The system enforces role-based access control, multi-factor authentication and conditional access policies to limit exposure. Admins can assign permissions at a granular level, ensuring users only access the data and functions required for their role. These policies apply to all devices.
Business Central supports a wide range of industry compliance regulations. Microsoft provides documented compliance with standards like ISO 27001, SOC 1 and 2, and GDPR. Businesses in regulated industries gain confidence that their ERP platform meets security and audit requirements without custom coding or third-party add-ons.
9. Maintenance and Support
Dynamics SL requires organizations to manage system maintenance or rely on outside consultants to keep the software running smoothly. Most SL environments operate on aging infrastructure that adds to IT overhead and increases the risk of downtime. Even with value-added resellers (VARs), system upkeep often demands a significant resource investment.
Since Microsoft officially ended mainstream support for Dynamics SL in January 2024 and extended support ends in July 2028, users no longer receive regular feature updates, non-security hotfixes or product enhancements without mainstream support. Security updates will also stop once extended support ends, leaving systems vulnerable to emerging threats and regulatory gaps. Companies that remain on SL must accept increasing risk and decreasing vendor accountability.
Dynamics 365 Business Central eliminates these challenges. As a fully managed Cloud solution, Microsoft handles all core maintenance activities, including uptime, updates and backups. These updates roll out automatically and include the latest features, security patches and compliance improvements without manual effort.
Because Business Central runs on Microsoft Azure, it benefits from high availability and built-in disaster recovery. Data backups occur automatically, and Microsoft retains multiple restore points to protect against data loss or corruption. Organizations can restore environments quickly without involving external IT providers if a recovery is needed.
Microsoft’s support ecosystem for Business Central is extensive. In addition to Microsoft’s support channels, thousands of certified partners, like Enavate, provide consulting, implementation and support services. The platform also has a robust user community and a continuously updated knowledge base, making it easier to resolve issues independently.
10. Scalability
Dynamics SL does not scale easily. As organizations grow, they often struggle to expand SL’s functionality without encountering technical limitations. Adding new business units, managing multiple legal entities, or expanding into new geographic markets typically requires custom development, third-party tools or entirely separate environments. This fragmentation introduces data silos, complicates reporting, and increases maintenance costs.
Hardware presents another limitation. On-premises SL environments must scale by upgrading servers, increasing storage or overhauling network infrastructure, which takes IT time and capital investment. If user counts increase or business processes evolve, the system may slow down or require costly reconfiguration to maintain performance.
Dynamics 365 Business Central is a Cloud-based solution that scales dynamically without requiring new hardware or infrastructure planning. Organizations can add users, expand business entities, or deploy new functionality with minimal disruption. Companies with multiple locations or international operations can consolidate financials, manage intercompany transactions, and generate roll-up reports without additional software. Permissions and workflows scale alongside the business, making it easy to onboard new teams while maintaining control.
The platform’s app-based architecture also supports scalability. As new business needs emerge, users can install extensions from Microsoft AppSource or develop custom apps tailored to specific workflows.
11. Cost Structure
Dynamics SL follows traditional on-premises pricing. Organizations purchase perpetual licenses upfront and then pay annual maintenance fees for continued access to support and updates. In addition to software costs, companies must invest in servers, operating systems, database licenses, backups and ongoing IT administration.
The cost of maintaining SL grows over time. As Microsoft no longer provides new features or non-security updates, organizations must shoulder the burden of system modernization themselves. Keeping SL running securely often means paying for custom development, hiring specialists to manage outdated infrastructure or relying on third-party tools to fill functional gaps. These hidden costs add up.
Dynamics 365 Business Central offers a subscription-based pricing model with predictable monthly fees. Licensing costs are tied to user roles, allowing organizations to pay only for what they use. Because the system runs in the Cloud, there are no capital costs for hardware, operating systems or on-premises backups.
Business Central also reduces indirect costs. Faster reporting, easier integrations and better automation save employee time and reduce dependency on consultants or external IT. Because users access the system from anywhere, companies avoid expenses related to remote access setup and device-specific licensing.
Ready for What’s Next?
Dynamics SL served project-based businesses well for decades. But with mainstream support officially ending and extended support ending soon, the risks of staying on SL are no longer theoretical. Security patches have stopped, and feature development has ended. Each passing year will make managing integrations, reporting, and compliance more difficult.
Dynamics 365 Business Central offers a modern, Cloud-based path forward. It delivers everything SL did — and more — with stronger financial visibility, more agile project tracking, better analytics, seamless integrations and a user experience designed for productivity. Organizations that make the move gain real-time access to their data, reduce their IT overhead and position themselves for faster growth.
If you’re evaluating what comes after SL, Enavate can help. Our team understands the challenges of legacy ERP and specializes in guiding SL users through successful migrations to Business Central. We don’t just move data; we can modernize business processes, clean up your customizations and ensure your teams get the training and tools they need to thrive in a new system.
Let’s talk about your next chapter. Contact Enavate to start your move from Dynamics SL to Business Central today.
