How Nonprofits Are Streamlining Operations with Microsoft Dynamics 365 Business Central

Now more than ever, nonprofit organizations are expected to do more with less—serve more constituents, deliver greater impact, and maintain complete transparency—while operating under tight budgetary and staffing constraints.

Microsoft Dynamics 365 Business Central is a modern, cloud-based ERP solution that provides nonprofits with the tools they need to manage finances, track grants, ensure accountability, and operate more efficiently, without adding overhead. Whether you’re a membership association, advocacy group, human services provider, or faith-based organization, Business Central helps you focus less on managing systems and more on achieving your mission.

Fund accounting in Business Central

Unlike for-profit companies, nonprofits don’t operate with traditional profit and loss statements (P&Ls). They need to track restricted and unrestricted funds, manage multiple revenue sources, and ensure compliance with donor and regulatory requirements. Business Central supports these unique needs through fund accounting capabilities that allow you to:

• Track revenues and expenses by fund, program, campaign, or department
• Segment and report financials based on donor restrictions or funding sources
• Create custom dimensions, such as location, service line, and grant type, to drive detailed reporting without complicated workarounds
• Generate audit-ready reports with full transparency into how each dollar is spent

Instead of using multiple spreadsheets or accounting systems that were not designed to accommodate nonprofit operations, Business Central with Tangicloud lets nonprofit finance teams manage fund accounting within a unified, integrated platform, reducing manual effort, data silos, and the risk of errors.

Simplified grant management and reporting

Managing grants can be a complex and time-consuming process. Each grant might have unique reporting requirements, timelines, and allowable cost structures. Business Central simplifies grant tracking and reporting by providing:

• Granular cost allocation for time, resources, and expenses across multiple grants
• Budget vs. actual tracking for each funding source
• Audit trails for every transaction, improving compliance and internal controls
• Integration with payroll and HR systems, enabling automated tracking of time and labor costs associated with specific grants

When combined with Business Central’s project accounting capabilities, nonprofits can treat each grant like a “project” with its own lifecycle, helping teams proactively manage milestones, expenses, and reporting deadlines.

Anywhere, anytime access with the cloud

Today’s nonprofit workforce is increasingly mobile, hybrid, and distributed. Whether staff are in the field, at events, or working remotely, they need secure access to systems and data. Business Central’s cloud-first architecture provides:

• Anywhere access via web browser, tablet, or mobile device
• Built-in Microsoft 365 integration, enabling seamless access to Excel, Outlook, and Teams
• Automatic updates and backups, reducing IT overhead
• Enterprise-grade security and compliance powered by Microsoft Azure

Nonprofits no longer need to maintain aging on-premises infrastructure or rely on outdated systems and manual processes. With Business Central, they gain a modern ERP that scales with their growth and adapts to their needs, eliminating the need for heavy IT investment.

More than just accounting

While financial transparency is a cornerstone of nonprofit operations, Business Central offers much more than fund accounting. It supports the entire operational ecosystem of a nonprofit organization, including:

• Procurement and vendor management – Streamline purchasing, track spending, and ensure compliance with funding guidelines.
• Donor and membership management – Integrate with Microsoft Dynamics 365 Sales or nonprofit CRM solutions to gain a 360° view of constituent relationships.
• Fixed asset tracking – Manage and depreciate equipment, buildings, and other assets acquired through grants or donations.
• Reporting and analytics – Use built-in reports or connect with Power BI to analyze program performance, financial health, and donor impact.

By consolidating financials, operations, and data into a single solution, Business Central reduces duplication, improves accuracy, and frees staff to focus on high-value activities.

Designed for nonprofits; backed by Microsoft

Microsoft has made a strong commitment to the nonprofit sector, offering discounted licensing, preconfigured nonprofit templates, and access to tools like Microsoft Cloud for Nonprofit, which integrates various Microsoft products, including Business Central, Microsoft 365, Azure, and the Power Platform.

And because Business Central is supported by a global network of partners and consultants with nonprofit expertise, implementation can be tailored to your structure, reporting requirements, and mission goals.

Ready to streamline your nonprofit operations with Business Central?

As nonprofits continue to navigate economic pressures, growing competition for available funds, and increased accountability, the need for a smart, scalable solution has never been greater.

Contact ArcherPoint by Cherry Bekaert to discover how we help nonprofits modernize their systems and achieve more with less effort.

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