ERP projects often stall because the benefits are hard to quantify. Boards want numbers, not just promises of efficiency. If you are considering Microsoft Dynamics 365 Business Central, you need a business case that maps benefits directly to P&L and balance sheet line items, quantifies risk reduction and shows a clear payback period.
This blog explains how to build a board-ready business case for Business Central, including practical examples and a simple payback calculator framework.
Why ROI matters for ERP decisions
ERP is a strategic investment, but it competes with other priorities for capital. According to Forrester, organisations that present quantified benefits achieve up to 50% higher approval rates for ERP projects. Boards want clarity on cost, return and risk mitigation before signing off.
Business Central delivers measurable gains in efficiency, compliance and scalability. The key is linking those gains to financial metrics your board understands.
Map benefits to P&L and balance sheet
Start by identifying where Business Central impacts financial statements. Common areas include:
• Revenue growth: Faster order processing and improved customer service can increase sales conversion and retention.
• Cost of goods sold: Better inventory planning reduces stockouts and excess stock, lowering carrying costs.
• Operating expenses: Automation of approvals, bank reconciliation and reporting cuts manual effort and overtime.
• Cash flow: Integrated credit management and payment predictions accelerate collections and reduce bad debt.
• Working capital: Optimised inventory and vendor terms shorten the cash conversion cycle.
• Compliance and audit costs: Built-in audit trails and Making Tax Digital features reduce external audit fees and penalties.
Each of these can be expressed in pounds and linked to specific line items in your P&L or balance sheet.
Quantify risk reduction
Boards care about risk as much as return. Legacy systems create exposure in several areas:
• Compliance risk: Manual VAT submissions or weak audit trails increase the chance of fines.
• Cybersecurity risk: On-premise systems without modern authentication are vulnerable to breaches.
• Operational risk: Reliance on spreadsheets and manual processes raises error rates and delays.
Business Central mitigates these risks with cloud security, automated compliance and integrated workflows. Quantify potential costs of non-compliance or downtime and include them in your case.
Build a payback calculator
A simple payback model helps boards see when the investment turns positive. Here’s a framework:
• Annual savings from efficiency: Estimate hours saved in finance, operations and reporting. Multiply by average salary cost.
• Inventory savings: Calculate reduction in carrying costs from improved planning.
• Cash flow benefit: Estimate interest saved or revenue gained from faster collections.
• Risk avoidance: Include avoided penalties or audit fees.
Total these benefits and compare to implementation and subscription costs. Most SMBs see payback within 12–18 months when benefits are fully realised.
Practical steps for a board-ready case
• Engage stakeholders early: Finance, operations and IT should validate assumptions.
• Use conservative estimates: Boards prefer realistic numbers over optimistic projections.
• Include intangible benefits: Improved agility and scalability matter, even if harder to quantify.
• Present scenarios: Show best case, expected case and worst case for transparency.
• Highlight Microsoft ecosystem value: Integration with Teams, Power BI and Power Automate adds ROI beyond ERP.
The payoff: confidence and clarity
A well-structured business case does more than secure approval. It sets expectations and provides a benchmark for measuring success post-implementation. By mapping benefits to financial statements, quantifying risk reduction and showing payback, you give your board the confidence to invest in Business Central.
As Microsoft notes, “Dynamics 365 Business Central enables organisations to optimise operations and improve financial performance through automation and insight.” For SMBs, this means turning ERP from a cost centre into a growth enabler.
Ready to build your business case?
If you need help quantifying benefits and creating a payback model, start with a discovery workshop. A few hours of planning today can unlock the clarity your board needs to approve tomorrow.