An ERP for the public sector: Dynamics 365 Business Central

Support financial control, service delivery and transparency with a connected ERP. Dynamics 365 Business Central helps public‑sector bodies manage budgets, procurement, resources and reporting with clarity and accountability.

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Why public‑sector organisations need Dynamics 365 Business Central

Public‑sector bodies operate under significant scrutiny. Whether managing community services, public spending, citizen‑facing programmes or grant‑funded activity, organisations must demonstrate transparency, efficiency and responsible use of resources. Many rely on a patchwork of legacy systems that make it difficult to track expenditure, meet audit requirements or coordinate activity across departments. 

Dynamics 365 Business Central centralises financials, procurement, asset oversight and programme administration, helping agencies replace outdated systems with a modern, secure and cloud‑based platform. Public‑sector solutions built on Business Central improve service delivery, operational transparency and financial stewardship.  

ERP systems are widely recognised as a foundation for government digital transformation, enabling integrated processes, consistent data and stronger governance. Microsoft’s public‑sector functionality supports budgeting, procurement, payables and receivables management — processes shared by both public and private organisations.

Meet Business Central: an ERP designed for government and public services 

Public‑sector organisations need secure, auditable and reliable systems that support efficient service delivery and strict compliance. 

Unified operations across departments 

Business Central connects finance, procurement, contract management, grants, service delivery and reporting in one system. This gives teams a single, accurate view of activities across departments, improving collaboration and reducing duplication. Cloud‑based ERP solutions help government organisations transform operations and improve outcomes with fewer resources.  

Better decision making 

Real‑time dashboards help leaders track budgets, spending, encumbrances, supplier performance and project progress. This supports responsible allocation of public funds and fast identification of financial risks. ERP systems support transparency and allow agencies to modernise processes rather than simply upgrade systems.  

Scalable for councils, agencies and multi‑entity bodies 

Business Central suits organisations ranging from local councils to state agencies and public authorities. It supports multi‑entity structures, inter‑departmental processes and consolidated reporting across programmes. Dynamics 365 provides comprehensive ERP capabilities tailored to public‑sector challenges.  

Cost efficiency 

Automated workflows streamline approvals, purchasing, invoice processing, reporting and audit preparation. This reduces manual workload and supports more efficient use of staff time. ERP systems help public agencies increase efficiency, transparency and productivity.  

Compliance, audit and governance 

Public‑sector bodies must maintain strict compliance around procurement, financial controls, data protection and audit requirements. Business Central provides strong audit trails, permission-based access and structured processes that help organisations meet governance standards. ERP solutions support accountability and better service delivery.  

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Discover how Microsoft Dynamics 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 government operations  

Business Central supports the operational backbone of government services, improving the flow of financial, procurement and operational information across departments. 

Budgeting and financial control   

Support annual budgets, encumbrances, commitments, project spending and department-level tracking within one system. This makes it easier to compare planned versus actual expenditure and maintain control across funded programmes. 

Procurement and supplier management  

Manage tendering processes, vendor records, contract compliance, purchasing and invoice approvals consistently across departments. Clear audit trails help demonstrate compliance with procurement frameworks. 

Grant and programme administration 

Track grants from initial approval through to delivery, monitoring spend, outcomes and compliance obligations. Microsoft Dynamics 365 Business Central helps organisations demonstrate how public funds are used, supporting transparency. 

Asset and facilities management 

Public‑sector bodies manage large portfolios of buildings, vehicles, infrastructure and equipment. Microsoft Dynamics 365 Business Central provides visibility of asset lifecycles, maintenance and depreciation, supporting efficient long‑term planning.  

Citizen‑facing service support 

Business Central integrates with Dynamics 365 CRM tools to support citizen case management, enquiries, appointments and service delivery. CRM and ERP integration unlocks full value in public‑sector transformation by linking citizen and operational data.

Why public‑sector organisations choose Business Central

Improve financial transparency across departments 

Business Central centralises data, helping organisations demonstrate responsible spending, meet audit requirements and respond quickly to external queries. ERP systems strengthen transparency and governance.

Modernise legacy systems 

By moving to the cloud, agencies replace outdated or siloed systems with a secure platform that supports future digital‑service innovation. Public‑sector digital transformation relies on modern cloud ERP solutions.  

Strengthen procurement governance 

Standardised procurement workflows reduce risk, prevent off‑contract spending and support compliance across large or distributed departments. ERP platforms support resource management and compliant procurement for contractors.  

Support government‑contracted service providers 

Firms delivering public‑sector services can track contracts, billings, obligations and DCAA‑aligned project processes using solutions built on Business Central. Business Central with GovCon extensions supports government‑contractor compliance.  

Enhance service delivery 

Integrated financials and operations help teams coordinate activities more effectively, improving the quality of services delivered to communities. Government ERP solutions improve service delivery and operational efficiency. 

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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.

the-dynamics-of-success-report-download-1

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.

the-dynamics-of-success-report-download-1

Transform your public‑sector operations with an ERP built for accountability 

Public‑sector organisations need dependable systems that support transparency, responsible spending and efficient service delivery. Business Central unifies finance, procurement, programme management and reporting so your teams can work confidently and consistently. 

To learn more about Business Central for the public sector, or to book an assessment, get in touch using the short form below.

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Frequently asked questions

What is Microsoft Dynamics 365 Business Central for the public sector?

It is an ERP system that supports financial management, procurement, budgeting, compliance and reporting for public‑sector organisations.

Does Business Central support budgeting and encumbrances?

Yes. Public‑sector budgeting, commitments, procurement and payable processes are supported natively.

Can Business Central help with government procurement compliance?

Yes. It supports structured procurement workflows and integrates with government‑contractor extensions for compliance.

Is Business Central suitable for councils and local authorities?

Yes. It supports multi‑entity structures, cross‑department processes and central reporting.

How does Business Central support digital transformation?

Cloud ERP modernises operations, improves data quality and supports transformation strategies.

Does Business Central integrate with citizen‑facing systems?

Yes. Integration with Dynamics 365 CRM tools links citizen interactions with operational and financial processes.

Can it support grant and programme management?

Yes. It tracks budgets, reporting obligations and delivery milestones for funded programmes.

Is Business Central secure enough for public‑sector data?

Yes. Cloud‑based deployment provides secure access, role‑based permissions and compliance‑ready controls.

Does Business Central support asset management?

Yes. It can manage asset registers, maintenance, depreciation and lifecycle tracking.

How soon do public organisations see value?

Many see improvements once financial and procurement systems become centralised and evidence‑based reporting improves.