What is Dynamics 365?

Dynamics 365 is Microsoft’s solution to fixing the scattered data processes and laborious manual admin that plague many small businesses and hold them back. It does this by bringing together core operations like finances, sales, HR, customer support (and more) within one platform.

In this blog, we'll answer in detail ‘what is Dynamics 365’, break down its key modules, explain how the pricing works, and look at how it integrates with Wise Business for simpler international invoicing and finances.

What is Microsoft Dynamics 365?

Microsoft defines Dynamics 365 as a “set of intelligent business applications”¹. In simple terms: it’s a suite of cloud-based business apps that unifies CRM and ERP capabilities, and all the data that goes with it, in a single, connected system.

Because it’s modular, you can pay for and use any of the 11 core apps only when you need them, adding more as you scale and grow. Everything runs in the cloud and updates automatically, so you don’t have to struggle to stitch together outdated tools and software to understand what’s going on in your business.

And while the apps can run on their own, Dynamics 365 is designed to share one set of data to automate routine work and make it easier to run different departments within a business.

Key Dynamics 365 modules and features

Microsoft lists five core categories within Dynamics 365: Customer experience, Service, Supply chain, Finance, and Small and medium business². Within each of these categories, there are two or three apps you can pay for.

Let’s look at a few of these apps, covering key features and how they solve business problems.

Dynamics 365 Sales

The Sales app is a cloud-based CRM with AI tools. It has a familiar Outlook-style interface that lets you track all your leads and build a steady sales pipeline.

Dynamic 365 Sales helps small teams, or even a sole trader, to stay on top of everything and close deals within an intuitive interface, rather than muddling through with shared inboxes and spreadsheets.

Key features³:

• Track every lead as it comes in
• Score leads automatically, so you know who’s most likely to buy
• See every email and interaction in one customer timeline
• Move deals through custom stages that match your sales process
• Forecast revenue based on real activity
• Get AI prompts that guide you to good follow-up opportunities

Dynamics 365 Business Central

Business Central is the “all-in-one” ERP app for small-to-medium-sized businesses. It brings together and automates a lot of the core processes for managing a business, like sorting out finances, buying stock, and completing project work. It integrates with all the Microsoft 365 apps to boost productivity.

Key features⁴:

• Record all your income, expenses, and accounts in one system
• Automate bank reconciliation with Copilot
• Create quotes and invoices
• Track purchase orders and supplier deliveries in real time
• See stock levels in real time and get alerts when items run low
• Monitor projects and all the costs of jobs and labour in one place

Dynamics 365 Supply Chain Management

The Supply Chain Management app aims to “modernize” your operations, so it’s easier to manufacture, distribute, and manage goods, even as you grow. Many businesses run into problems with manual stock controls and improvised planning. Dynamics 365 provides full visibility to reduce guesswork.

Key features⁵:

• Plan production schedules based on demand
• Track inventory across multiple warehouses instantly
• Manage supplier orders and deliveries as they progress
• Use Copilot to optimise fulfilment and eliminate stockouts
• Collaborate with other departments using Teams

Dynamics 365 Finance

Dynamics 365 Finance is the central hub for managing financial operations. It’s a unified platform that standardises most of the repetitive work — accounting, compliance, budgeting, reporting — so teams spend less time chasing and trying to understand all the important numbers. Many of the Finance features are powered by AI with Copilot.

Key features⁶:

• Handle everyday accounting tasks in one system
• Monitor your cash flow and use AI to forecast future trends
• Predict when customers will pay invoices to improve margins
• Create budget proposals based on historical data
• Manage multi-currency finance and complex entity structures within one system

Dynamics 365 Human Resources

The Human Resources app centralises employee data and includes tools to manage core functions like leave, payroll changes, performance tracking, and workplace planning. Microsoft says these help managers to increase productivity while accelerating the development of employees.

Key features⁷:

• Store employee details, contracts, and documents securely
• Track leave and absences with simple approvals that employees can also see in Teams
• Manage pay, benefits, and role changes
• Record performance goals and development plans with training and cert tracking
• Use workforce insights to plan hiring and staffing needs

Dynamics 365 Customer Service

The Customer Service app centralises customer information and conversations and gives reps the tools they need to provide fast, personalised support. Again, there’s now a big focus on generative AI and automation to improve response times and quality of service.

Key features⁸:

• Log customer issues in one shared dashboard
• Give agents a full history of each customer
• Resolve customer problems faster with Copilot
• Use AI-based routing to match customers with service reps
• Reply through email, chat, and socials from a single hub

Microsoft Dynamics 365 pricing in Australia

Every Microsoft Dynamics 365 app is priced separately, with different plans depending on features and usage. You have to buy a licence for each user — ‘full’ users get a subscription for the specific app they need, while ‘light’ users get a cheaper Team Members licence for basic tasks⁹.

Let’s take the Business Central plan, for example. There are three tiers: two main ones called Essentials and Premium, plus a team members option with ‘limited access’ to simply read data and sign off on workflows¹⁰.

This pricing model is used across Dynamics 365. You can also get a 30-day free trial if you want to try any of the apps, including Business Central, for a short time before committing to a plan.

Benefits of MS Dynamics 365

The benefits of using Microsoft Dynamics 365 include:

• Full integration - Every Dynamics 365 app shares data, so everything is in sync across your business.
• Automated tasks - Microsoft is investing heavily in AI, and Dynamics 365 uses built-in automation to cut down on repetitive admin — things like sending follow-up reminders and updating financial entries are done instantly.
• Scaling as you grow - you can start with just a single app and then add more (or unsubscribe) as you see fit, depending on how your business is performing. There are no messy migrations or rebuilding things from scratch.
• Clearer reporting - all your data is in place and updates seamlessly, so it’s easier to see your cash flow, sales performance (and more), while meeting compliance obligations.
• Connects with Microsoft 365 - many small teams rely on Outlook, Excel, Teams, etc. for everyday work. Dynamics 365 plugs into these straight away, so you don’t have to waste time learning new apps.

Wise Business and MS Dynamics 365 integration

If you’re doing business internationally, Microsoft’s platform also integrates with Wise Business to streamline day-to-day finances. All your international payments will sync automatically between the two tools, making multi-currency transactions easier to track and speeding up reconciliation. It’s a simple way to keep your records accurate and manage overseas payments without any extra admin.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

FAQs

1. Can small businesses use Dynamics 365?
   Yes, they can. Business Central and Dynamics 365 Sales are both geared towards smaller teams. There’s no requirement to buy the full suite of apps, either, and you don’t need a large IT setup to run things. There are multiple benefits of moving from manual tools to an integrated Dynamics 365 setup.

2. Is the data stored in the cloud or on-premise?
   Yes, Dynamics 365 is primarily cloud-based. Everything runs on Microsoft’s infrastructure, which means updates and security are handled for you. It’s simple and easy to maintain. Some larger enterprise solutions offer hybrid or on-premise options if you really need them.

3. Do I need a partner to set up Dynamics 365?
   Not necessarily. Plenty of businesses start by exploring Dynamics 365 features in the 30-day free trial, or by setting up a basic environment themselves. A partner can save time and address challenges if you’re planning to integrate dozens of apps or build custom workflows, but it’s not essential.

Sources:

1. Microsoft Lean - What is Dynamics 365?
2. Microsoft - What is Dynamics 365 Products
3. Microsoft - Dynamics 365 Sales
4. Microsoft - Dynamics 365 Business Central
5. Microsoft - Dynamics 365 Supply Chain Management
6. Microsoft - Dynamics 365 Finance
7. Microsoft - Dynamics 365 Human Resources
8. Microsoft - Dynamics 365 Customer Service
9. Microsoft - Dynamics 365 licence FAQs
10. Microsoft - Dynamics 365 Business Central Pricing
11. Microsoft - Dynamics 365 pricing overview