Business Central for IT services companies

Bring your contracts, projects, tickets, resourcing and finances into one connected ERP system. Dynamics 365 Business Central helps IT services companies and MSPs improve utilisation, protect margins and deliver a better service for clients.

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Why IT services companies need Dynamics 365 Business Central

IT services businesses often run on a patchwork of tools for billing, projects, support and finance. Business Central connects these moving parts into a single ERP platform, so you can see the full picture of client profitability, service performance and cash flow.

Dynamics 365 Business Central is a comprehensive ERP system for IT services companies. It brings together finance, sales, purchasing, projects and service management in one platform that is easy to use and built to work with Microsoft 365 and the wider Dynamics 365 ecosystem.

With Business Central, IT service providers can replace multiple disconnected systems with one unified solution. You gain consistent data across contracts, support, projects and invoicing, so you can control costs, keep recurring revenue accurate and make decisions with confidence. If you want to see what an ERP designed for IT services and MSPs can do, keep reading.

Meet Business Central: an ERP for IT services companies

IT service providers rely on accurate data, reliable processes and joined‑up teams. Business Central brings everything together in one place so you can grow with confidence.

End‑to‑end visibility across the service lifecycle

Most IT services businesses use separate systems for sales, projects, service delivery and finance. Business Central connects them, giving leaders complete visibility of workload, revenue, performance and risks. When everyone works from the same data, it becomes easier to plan capacity, measure delivery and make decisions that support long‑term growth.

Stronger project and cost control

Business Central helps you control project budgets, forecast effort and track real costs. This reduces the risk of overruns and helps protect margins. For service leaders, this means clearer accountability, better resource planning and more predictable project delivery.

Better financial management and reporting

Finance teams can manage purchasing, approvals, invoicing and reporting in one place. Because data flows across the business, month‑end becomes faster, revenue becomes more reliable and leaders gain accurate insight into cash flow. This helps support investment decisions and keeps the business on a stable footing.

Improved utilisation and workforce productivity

With connected project, service and scheduling data, Business Central shows where teams are under‑ or over‑utilised. Leaders can spot bottlenecks, balance workloads and ensure staff focus on the right work. This supports better morale, reduces burnout and helps the business deliver a higher standard of service.

Security, compliance and audit readiness

IT services companies handle sensitive client systems and data, so compliance is critical. Business Central enforces process consistency, approvals and clear audit trails. It also benefits from Microsoft’s investment in security and governance tools, helping you demonstrate strong controls to clients and auditors.

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Discover how Microsoft Dynamic 365 Business Central works

Why your business needs an ERP

82%

of businesses are utilising an ERP

1 in 5

businesses are dissatisfied with their current ERP

96%

of businesses say using an ERP has contributed to achieving business outcomes

Data taken from a survey we commissioned in December 2024

ERP designed for IT services

IT services companies face a distinct set of challenges. You have to manage recurring contracts, projects, SLAs, engineers’ time, third‑party licences and support tickets, all while keeping clients happy and margins healthy. Dynamics 365 Business Central gives you the structure, control and insight to manage these moving pieces in one place.

Contract and subscription management

Business Central helps you stay in control of contracts, subscriptions and renewals. You can define service packages, billing schedules and pricing models in a consistent way, and link them directly to clients and projects. This makes it easier to keep recurring revenue accurate, avoid missed renewals and ensure that changes to scope are reflected on invoices.

Project and resource management

Many IT services businesses blend recurring managed services with project work. Business Central supports project planning, budgeting, time recording and cost tracking in one system. You can see who is working on what, understand utilisation, and compare planned versus actual costs and revenue at project level. This helps you keep projects on track, protect margins and make better resourcing decisions.

Service delivery and SLA performance

Client relationships in IT services live and die by service quality. By connecting service contracts, resource planning and financials, Business Central helps you understand the true cost and performance of service delivery. You can analyse how much effort goes into meeting SLAs, see which clients need more support, and identify where process changes or automation could free up your team to focus on higher‑value work.

Why IT services companies choose Dynamics 365 Business Central

Recurring billing for managed services

Business Central helps you manage recurring billing for managed services in a structured and reliable way. You can set up contracts with fixed or variable billing, align them to monthly, quarterly or annual schedules, and link them to actual usage or licence counts where needed. This reduces manual effort in preparing invoices, helps avoid revenue leakage and gives finance teams a clear view of predictable income.

Project accounting and time tracking

For project‑based IT work, you need to understand exactly how time and costs translate into revenue. Business Central allows consultants and engineers to record time and expenses directly against projects. Finance teams can then review, approve and bill this activity in a controlled way. This makes project profitability visible and ensures the work your teams deliver is reflected accurately on client invoices.

Resource scheduling for engineers and consultants

Getting the right people onto the right work at the right time is critical for IT service providers. With Business Central, you can plan and schedule resources across projects and service commitments. You can see capacity at a glance, understand where skills are most needed and reduce clashes between support work and project delivery. This supports better utilisation and helps keep both clients and staff happier.

Cash flow and revenue forecasting

Because Business Central connects contracts, projects, sales and finance, it becomes much easier to forecast revenue and cash flow. IT service leaders can see the impact of signed deals, upcoming renewals and project pipelines in one place. This allows more realistic planning, helps identify when to hire or invest, and supports conversations with investors or lenders with clear, reliable data.

Reporting across clients, services and teams

IT services businesses need clear reporting that goes deeper than a standard profit and loss. Business Central gives you the ability to analyse performance by client, contract type, service line, project or team. You can see which services are driving growth, which clients are most valuable and where operational improvements will have the biggest impact. This helps leaders make decisions grounded in real numbers, not assumptions.

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The Dynamics of Success

Get a better understanding of the benefits of using a CRM system - allowing businesses like yours to overcome fragmented systems and disconnected workflows. Don't just read about them either, our report provides you with actionable insights and practical recommendations so that you can begin to make data-led decisions.

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Download our report

The Dynamics of Success

Get a better understanding of the benefits of using a CRM system - allowing businesses like yours to overcome fragmented systems and disconnected workflows. Don't just read about them either, our report provides you with actionable insights and practical recommendations so that you can begin to make data-led decisions.

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Supercharge your operations with an ERP made for IT service providers

In IT services, consistency and control matter as much as speed. Business Central is an ideal ERP for IT services companies because it unifies contracts, projects, support and finances in one connected platform. This helps you deliver reliable service to clients, while managing costs and growing recurring revenue with confidence.

To learn more about Business Central for IT services companies, or to see what ERP for MSPs looks like in action, get in touch via this short form.

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Frequently asked questions

What is Microsoft Dynamics 365 Business Central for IT services companies?

Microsoft Dynamics 365 Business Central is a modern ERP and business management solution that helps IT services companies bring finance, sales, projects and service operations into one system. For MSPs and IT consultancies, it becomes the backbone of the business, supporting everything from recurring contract billing and project accounting to purchasing, approvals and reporting.

Can Business Central handle recurring billing and subscriptions for IT services?

Business Central is designed to support recurring billing and subscription‑style revenue. You can define service contracts, set billing frequencies, manage different pricing models and link charges to actual usage or licence volumes where required. This helps IT services companies bill clients accurately and on time, reducing manual work and the risk of missed or incorrect invoices.

How does Business Central support project‑based IT work and consultancy?

For project‑based IT work, Business Central provides tools for planning, budgeting, time recording, expense capture and project accounting. Consultants and engineers can record their time directly against projects, and finance teams can manage approvals and billing in the same system. This gives clear visibility of progress and profitability, and helps you compare planned versus actual effort and cost for every project.

Does Business Central integrate with Microsoft 365 and other IT tools?

Business Central integrates closely with Microsoft 365, including Outlook, Excel and Teams, so your teams can work with business data in the tools they already use. It also offers standard connectors and APIs that can be used to integrate with other systems commonly used by IT service providers. This helps reduce duplicate data entry and ensures your ERP sits at the centre of your wider application stack.

How secure is Business Central for IT service providers handling client data?

Business Central benefits from Microsoft’s security, identity and compliance capabilities. Data is stored in secure, managed datacentres, and access can be controlled through role‑based permissions and integration with Microsoft Entra ID. For IT service providers, this means you can align your ERP with your existing security policies and provide auditors or clients with clear evidence of how access and changes are controlled.

Can Business Central grow with a scaling IT services company?

Business Central is built to scale with your business. You can easily add new users, companies and legal entities, support new currencies and regions, and introduce new services without starting again with your systems. As your IT services business grows in size and complexity, you can keep using the same core ERP platform and extend it with additional apps or integrations when needed.

What is the difference between Business Central and other Dynamics 365 ERP solutions for IT businesses?

Business Central is designed for small and midsized organisations that want a single, flexible system for finance and operations. Other Dynamics 365 ERP solutions tend to be aimed at larger enterprises with more complex, global requirements. For most IT services companies and mid‑market consultancies, Business Central provides the right balance of capability, flexibility and cost.

How does Business Central help improve profitability for IT services companies?

Business Central gives leaders clear insight into where money is made and where it is lost. By tracking costs and revenue across contracts, projects and service lines, you can identify low‑margin work, over‑servicing, under‑utilised teams and unbilled time. This allows you to adjust pricing, improve scoping and focus on the services and clients that deliver the strongest returns.

How can an IT services company get started with Business Central?

Getting started usually begins with a review of how your IT services business operates today, including contracts, billing, projects, support processes and reporting. From there, you can work with a Business Central partner to design a solution that fits your model and agree a phased implementation plan. Many IT service providers start by moving core finance and contract billing into Business Central, then expand into projects, purchasing and deeper reporting as the system beds in.

Can Business Central support a mix of project work, support services and consultancy?

Yes. Business Central is designed to handle different types of service delivery in one system. You can manage project work with detailed budgets and time tracking, run support services with clear cost and resource control, and bill consultancy or ad‑hoc work consistently. This makes it easier for leaders to understand overall performance, manage staffing and keep revenue accurate across different service lines.