If you’ve worked in finance long enough, you’ve probably worked with your fair share of accounting software providers — including several Microsoft accounting software solutions under various names. There have been so many acquisitions and name changes over the past two decades that it can be difficult to keep up with them all.
As you explore your options, it’s helpful to understand how these solutions evolved as well as their key features and shortcomings.
Microsoft Dynamics: A legacy solution built by acquisition
Software Connect describes Microsoft Dynamics as "a line of integrated, adaptable business management solutions" that, in the words of PC Mag, "was built by acquisition" starting before the turn of the millennium.
Here are a few highlights from the Microsoft Dynamics timeline:
- 1981: Fargo, N.D.-based Great Plains Software is founded by Doug Burgum, who in 2016 became governor of North Dakota.
- 2000: Great Plains Software purchased a major competitor, Solomon Software, part of a flurry of consolidation activity among accounting software companies during this time.
- 2000: Another notable merger among business software developers occurred between Danish companies Navision and Damgaard.
- 2001: Microsoft acquired Great Plains Software (and with it, Solomon Software) after "a long and productive relationship as partners." This acquisition is different from other mergers of the time in that it placed midrange accounting solution companies in competition with the largest software maker in the world.
- 2002: Microsoft acquired Navision for $1.45 billion in stock and cash and makes it part of Microsoft Business Solutions. The move was characterized as a way for Microsoft to gain a foothold in the European market.
- 2005: Microsoft officially unveiled the Dynamics brand, an umbrella under which it places several acquisitions from the past five years. As a result, Microsoft Business Solutions-Great Plains became Microsoft Dynamics GP; Microsoft Business Solutions-Navision became Microsoft Dynamics NAV; and Microsoft Business Solutions-Solomon became Microsoft Dynamics SL and Microsoft Business Solutions Axapta became Microsoft Dynamics AX.
The Dynamics lineup remains a part of Microsoft's software portfolio today. Solutions are sold through value-added resellers (VARs). VARs, or partners, generally provide installation, support, and some customization. While this translates to more personalized service, it also "makes it incumbent on buyers to evaluate not only the products, but also the quality of service from a given VAR," said a CFO article at the time of Microsoft's acquisition of Great Plains Software.
Pros of Microsoft Dynamics:
- Comprehensive features for financial management, inventory, and human resources.
- Extensive customization options with a large library of reports.
- Long-established, trusted software with widespread adoption.
Cons of Microsoft Dynamics:
- Complex and not very user-friendly, requiring significant training for users.
- Expensive hosting and upgrade costs with the Azure-based deployment.
- Not a true cloud-based system, which limits flexibility.
Microsoft Dynamics GP: A longstanding ERP solution with limitations
Software Connect calls Microsoft Dynamics GP "one of the most popular and longest tenured business management software products on the market." The site describes Dynamics GP as an ERP for small to mid-market businesses, with capabilities including inventory management, business intelligence, and human resources.
A 2016 PC Mag review of Microsoft Dynamics GP praises the software's feature-richness and large library of customizable reports but laments its complexity and lack of user-friendliness.
Additionally, the latest version of Microsoft Dynamics GP operates in the Azure Cloud as a hosted system, not a true cloud-based accounting software. That means you’ll likely have to pay extra for data hosting and upgrades.
Pros of Microsoft Dynamics GP:
- Comprehensive ERP features, including inventory management, business intelligence, and HR tools.
- Extensive customization options with a large library of reports.
- Long-established, trusted software with widespread adoption.
Cons of Microsoft Dynamics GP:
- Complex and not very user-friendly, requiring significant training for users.
- Hosted on Azure, adding additional costs for hosting and upgrades.
- Not a true cloud-based system, which limits flexibility.
Dynamics SL (Solomon): Tailored for specific industries, but outdated
Dynamics SL is geared toward businesses in specific industries, including government contracting, wholesale distribution, construction, and professional services and engineering.
The solution's original developer, Solomon Software, has become Solomon Cloud Solutions and now uses its nearly 40 years of experience with Solomon products to provide support and consulting services.
While Dynamics SL integrates well with other Microsoft applications, users note some of its features are outdated.
- “Every feature of Purchasing is very tedious compared to the competitors I have used,” one reviewer commented.
- Another mentioned it’s less than reliable. "The system doesn’t seem to be able to handle large amounts of data at once. “It crashes a lot and we have several different workarounds that we have to do to make it work and meet our needs.”
Pros of Dynamics SL:
- Strong integration with Microsoft applications.
- Useful for industry-specific needs, such as government contracting or construction.
Cons of Dynamics SL:
- Outdated features and functionality.
- Reliability issues when handling large data sets.
- Requires workarounds for issues that should be handled natively.
Dynamics NAV: Evolved into Dynamics 365 Business Central, but still has drawbacks
After Navision became Microsoft Business Solutions - Navision, which then became Microsoft Dynamics NAV, the solution underwent one final transformation.
"Dynamics NAV is now Dynamics 365 Business Central," states Microsoft's website. The company promised Business Central has "the same rich functionality as Dynamics NAV," describing the solution as "a comprehensive business management solution designed for small to medium-sized businesses."
The solution now known as Business Central differs from Dynamics GP in that its multi-language and multi-currency capabilities are appropriate for companies that conduct business internationally, according to Software Connect.
However, it has a few significant drawbacks.
It lacks multi-entity accounting support, requiring users to navigate between different databases to manage inter-company transactions.
There’s no native ability to create consolidated financial reports without purchasing a separate application.
The Dynamics NAV (the foundation of Business Central) was initially released in 1987 with a proprietary platform and toolset. Much of that same platform exists today in Business Central.
Pros of Dynamics NAV (Business Central):
- Strong multi-currency and multi-language capabilities for international businesses.
- Comprehensive business management features for small to medium-sized companies.
Cons of Dynamics NAV (Business Central):
- Lacks multi-entity accounting support.
- Requires additional applications for consolidated financial reporting.
- Built on an older proprietary platform, leading to some legacy limitations.
Sage 50cloud Accounting: A retrofit to client-server applications
After being acquired by Sage US in 1999, Peachtree Software became known as Peachtree by Sage, which later became Sage 50cloud. While this solution has grown to meet modern business needs, there are still significant drawbacks.
Sage 50cloud Accounting is marketed as a cloud-based solution, but it is still not a fully web-based accounting application, requiring local client installations.
A 2021 review of Sage 50cloud in PC Mag says:
"This powerful and innovative connection helps make up for the fact that you must have Sage 50cloud Accounting installed on a local desktop (or a very good laptop, since it's resource-heavy) to make full use of its features."
Users rate its payroll and tax calculation features highly; however, some people note it isn’t the most user-friendly accounting software solution.
“It is not at all intuitive to use,” one user said in a review on G2 Crowd. “Reporting is convoluted and overly complicated to set up.”
"The integrations available are extremely costly for a small business," said another user.
Pros of Sage 50cloud Accounting:
- Strong payroll and tax calculation features.
- Trusted by many small businesses for its reliability.
Cons of Sage 50cloud Accounting:
- Not fully cloud-based, requiring local installations.
- User interface can be difficult to navigate, especially when setting up reports or integrations.
- Integrations are costly for small businesses.
Why Gravity Software is the best alternative to legacy accounting solutions
Some legacy accounting solution providers evolve and find new ways to stay competitive amid a changing business landscape. Others struggle to keep up, forcing users to continually upgrade to the latest version, pay for data hosting or buy expensive add-ons from independent software vendors that may not integrate well.
Gravity Software is a true cloud-based accounting solution built on the Microsoft Power Platform. This gives you all the same familiarity and security features you expect from Microsoft products and services with enhanced functionality for multi-entity accounting.
Key benefits of Gravity Software:
- Multi-entity accounting: Easily manage multi-entity accounting in one database, eliminating redundant data entry and streamlining operations.
- Scalability: Designed to grow with your business. Whether you’re managing a few entities or hundreds, Gravity can handle it all.
- Cloud-based: No need for servers or data hosting. Gravity’s true cloud solution is continuously updated, so you're always working with the latest features without the high costs.
- Microsoft integration: Seamlessly integrates with Microsoft 365 applications such as Teams, SharePoint, and OneNote without requiring Office 365.
- User-friendly: Simple to use and customize. Your team can add fields, create workflows, and personalize the solution to fit your specific needs.
The advantages of Gravity Software over legacy systems
Simplify your operations:
With Gravity, you can eliminate the need for managing multiple software solutions. Unlike Microsoft Dynamics or Sage 50cloud, Gravity offers a unified platform that reduces complexity and enhances efficiency. You don’t have to deal with the frustrations of managing separate databases or systems.
Stay ahead with continuous updates:
With legacy systems, you’re often stuck waiting for annual updates or paying for expensive add-ons to stay competitive. Gravity’s cloud-based platform provides automatic updates and new features as they’re released, so you’re always using the latest version of the software.
Built for growth:
As your business scales, so does Gravity. Whether you're managing two entities or 2000+, Gravity handles consolidation, reporting, and multi-currency transactions without the headache of navigating through multiple systems or costly integrations.
Move beyond legacy accounting solutions
While legacy accounting solutions like Microsoft Dynamics and Sage 50cloud have their place, they are no longer the best choice for businesses looking for modern, scalable, and user-friendly accounting systems. Gravity Software offers a flexible, cloud-based solution that provides better features, more integration options, and a lower total cost of ownership.
Ready to leave legacy systems behind? Schedule a demo of Gravity Software today and experience smarter, better accounting for your growing business.
Gravity Software
Better. Smarter. Accounting.
