Microsoft Dynamics 365 Business Central vs. Sage Intacct: Choosing the Right ERP for Growth
Choosing the right ERP system is a high-stakes decision for growing businesses. Two popular cloud-based ERP solutions for small and mid-sized businesses (SMBs) are Microsoft Dynamics 365 Business Central and Sage Intacct. Both offer robust capabilities for financial management, automation, and visibility. But under the surface, their strengths, limitations, and ecosystems diverge in meaningful ways.
If you’re evaluating ERP options, understanding how these two platforms compare will help you determine which best aligns with your business needs, goals, and technology roadmap.
Core strengths: Breadth vs. depth
One of the most significant differences between the two products is that Intacct was initially developed as an accounting and financial management application, while Business Central was designed to be a comprehensive ERP. As a result, Intacct has strong financial management functions but relies heavily on third-party add-on products for full ERP functionality (manufacturing, warehouse, inventory, supply chain management, etc.). In contrast, Business Central has these capabilities built into it.
Dynamics 365 Business Central provides a comprehensive ERP platform. In addition to strong financials, it includes built-in capabilities for:
- Inventory and supply chain management
- Warehouse operations
- Sales and service management
- Project accounting
- Manufacturing and production planning
That breadth makes Business Central a better fit for companies looking to unify finance with operations—without needing multiple disconnected systems.
Sage Intacct was built from the ground up for financial management and accounting. It excels in areas such as:
- Multi-entity and multi-dimensional reporting
- Compliance and audit trails
- Revenue recognition (ASC 606 and IFRS 15)
- Real-time dashboards
Sage Intacct’s design is particularly attractive to finance teams who prioritize multiple entity consolidations, granular visibility, and automation over broader operational support.
Ultimately, Sage Intacct is a strong choice for accounting-centric firms; Business Central is a better choice for organizations that need integrated operational capabilities alongside finance.
ISV marketplace and ecosystem
All ERP software must be modified in some way to fit specific industries or company processes, and Business Central and Intacct are no exceptions. Both platforms have marketplaces for third-party solutions that provide last-mile functionality for particular industry needs.
Business Central already has comprehensive ERP functionality, so the need for third-party software products (also called Independent Software Vendor, or ISV, products) is more focused on specific industry needs. Microsoft’s vast marketplace for Business Central ISV solutions, AppSource, has over 5,000 apps from more than 3,800 ISV partners globally.
Since Sage Intacct does not provide basic ERP functionality out of the box, it needs ISV products to provide core ERP functionality. This was a deliberate design decision: The idea was to offer a best-of-breed financial engine and allow users to use the best-of-breed add-on products for CRM, payroll, warehouse and inventory management, manufacturing, etc. As a result, this solution adds additional cost for licensing and complexity to configure and maintain these ISV products. The Sage Intacct Marketplace is more limited than Microsoft’s, hosting a little over 350 certified third-party applications that extend Intacct’s capabilities to industry solutions that include:
- Construction and Real Estate
- Field Services
- Healthcare
- Hospitality
- Manufacturing
- …and more.
While Sage Intacct does offer industry-specific ISV solutions, these products add to the cost of the software through licensing, configuration, and maintenance.
Cloud infrastructure: Microsoft vs. AWS
Another major difference lies in each product’s cloud architecture.
Business Central runs on Microsoft Azure, a trusted cloud environment with native integration across Microsoft 365 (formerly Office), Azure AI, and Microsoft’s Power Platform, providing seamless scalability, high security, and performance continuity.
Sage Intacct is hosted on Amazon Web Services (AWS), which also delivers reliable cloud performance—but without the native interoperability that Microsoft customers enjoy across their enterprise ecosystem.
Business Central is a clear choice for organizations already using Microsoft tools or seeking deep integration among the components in their ERP platform.
Deployment options
Yet another consideration is that Business Central can be deployed on-premises or in the cloud. This gives companies that already have their own data centers or are restricted by industry regulations the option to host Business Central themselves or in the cloud.
Sage Intacct is limited to cloud deployments only.
Customization and extensibility
Business Central is highly extensible. It integrates natively with the Power Platform, enabling businesses to build custom apps (Power Apps), automate workflows (Power Automate), visualize data (Power BI), and even deploy AI tools (Copilot Studio) without writing code. Developers love Business Central’s capabilities to be customized, if needed, to meet virtually any business requirement. This versatility also allows ISVs to provide many solutions on Microsoft’s AppSource marketplace with thousands of industry-specific extensions.
Sage Intacct is more limited in its extensibility. While it supports APIs and has a growing marketplace, it lacks the same no-code/low-code flexibility. Customizations often require third-party tools or developer resources.
Reporting and business intelligence
One area where Sage Intacct shines is in financial reporting. Its multi-dimensional GL structure allows you to slice and dice data across departments, locations, projects, or other custom dimensions.
While Business Central offers solid native reporting and financial insights, its true power comes from its tight integration with Power BI, which allows users to create interactive, role-based dashboards with AI-driven insights. Business Central provides a more unified BI experience for businesses that want analytics beyond finance.
Sage Intacct is a solid choice for traditional financial reporting; Business Central excels for integrated, cross-functional analytics.
Licensing and cost
Business Central uses a more predictable, role-based license model (Essentials or Premium), which includes core ERP features at a single price. Microsoft often offers bundled pricing with other Dynamics or Microsoft 365 products, creating additional value for existing Microsoft customers.
While Sage does not publish its pricing, Sage Intacct typically uses a modular pricing model. In this model, you pay per user for each additional module (e.g., multi-entity, project accounting, time tracking) plus extra for ISV products. This pricing structure allows smaller companies to start small; however, costs can escalate quickly as you grow or add functionality.
Artificial intelligence
Microsoft Copilot is Microsoft’s generative AI solution, integrated across Microsoft’s business software, including Dynamics 365 Business Central, Microsoft 365, Visual Studio, the Microsoft Power Platform, and Azure services and provisioning. Microsoft has invested over $6 billion to develop generative AI in its products, introducing Copilot into Business Central in 2023. Microsoft Copilot includes auto-generating product descriptions, late payment predictions, sales and inventory forecasting, and AI-powered tools for automating finance and other business processes.
Sage Intacct has an integrated suite of AI capabilities (including Sage Copilot released in December 2024) that help automate tasks, provide real-time reporting, and detect transaction anomalies.
Data and system security
Both Dynamics 365 Business Central and Sage Intacct offer comprehensive security features to help protect your application, data, and customers, including:
- Role-based access controls, support for least privileged access, and multi-factor authentication.
- Data encryption to secure data in transit.
- Compliance with industry standards and requirements, such as ISO 27001, SOC 1 Type II and SOC 2 Type II, and GDPR.
Plus, each cloud service provider (Azure and AWS) offers enterprise-level security, backup and recovery services, failover capabilities, and intrusion detection and mitigation.
User interface and ease of use
Sage Intacct has a clean, modern-looking interface designed for finance professionals. Users familiar with accounting software should find it intuitive.
Business Central offers a look and feel that will be familiar to users of Microsoft 365. Personalization options, keyboard shortcuts, and embedded help make it accessible to both finance and operations teams. Its deep Microsoft integration also supports native editing in Excel and collaboration via Teams.
Need help making the right choice?
Each company is different, and the selection of an ERP solution should involve careful consideration of all stakeholders in your organization.
Both Sage Intacct and Microsoft Dynamics 365 Business Central are leaders in the mid-market ERP space. The right choice depends on whether you need a deep financial management tool (Intacct) or a broader ERP platform that evolves with your entire business (Business Central).
In general:
Choose Sage Intacct if:
- Your business is finance-focused and doesn’t need integrated operational capabilities.
- You require complex financial reporting and compliance out of the box.
- You prioritize accounting-focused features like advanced revenue recognition and multi-entity management.
Choose Business Central if:
- You need an integrated solution that handles finance, operations, manufacturing, sales, and inventory management in a single platform.
- You’re invested in the Microsoft ecosystem and want to leverage tools like Azure services, Microsoft 365, or the Microsoft Power Platform.
- You’re looking for a scalable solution with strong customization options and industry support.
Contact ArcherPoint by Cherry Bekaert and talk to a Business Central technology partner who understands your business and can guide your ERP journey (even if that journey does not include Business Central).