Microsoft Dynamics 365 vs. Xero

Overview
ProductRatingMost Used ByProduct SummaryStarting Price
Microsoft Dynamics 365
Score 7.8 out of 10
N/A
Microsoft Dynamics 365 is a CRM providing sales, marketing, and service functionality. It is offered as SaaS and on-premise. Dynamics 365 is part of the larger Dynamics suite of business intelligence and ERP products.
$44
per month
Xero
Score 8.5 out of 10
N/A
Xero is an online accounting software product for small businesses and personal finance. Its features beyond general ledger and double-bookkeeping include quotable invoicing, bank reconciliation, purchase order and expense management, and tax management. Third party apps can extend its features further.
$13
per month
Pricing
Microsoft Dynamics 365Xero
Editions & Modules
No answers on this topic
Early
$13
per month
Growing
$37
per month
Established
$70
per month
Offerings
Pricing Offerings
Microsoft Dynamics 365Xero
Free Trial
YesYes
Free/Freemium Version
NoNo
Premium Consulting/Integration Services
YesNo
Entry-level Setup FeeNo setup feeNo setup fee
Additional DetailsPrices in table are in USD and just apply to the US - other markets & prices are listed below: Canada - Starter $18 CAD/month, Standard $45 CAD/month, Premium 5 $58 CAD/month UK - Starter £14/month, Standard £28/month, Premium £36/month AU - Starter $29 AUD/month, Standard $59 AUD/month, Premium 5 $76 AUD/month NZ - Starter $31 NZD/month, Standard $66 NZD/month, Premium $84 NZD/month
More Pricing Information
Community Pulse
Microsoft Dynamics 365Xero
Considered Both Products
Microsoft Dynamics 365

No answer on this topic

Xero
Chose Xero
Better user friendly dashboard, and cost effective.
Chose Xero
Xero was the easiest to use and most cost effective of all the solutions we evaluated during the procurement process. We spoke to other similar sized businesses and they highly recommended using Xero. We liked the fact it's a cloud based system meaning we can access the system …
Top Pros
Top Cons
Features
Microsoft Dynamics 365Xero
Sales Force Automation
Comparison of Sales Force Automation features of Product A and Product B
Microsoft Dynamics 365
7.9
69 Ratings
3% above category average
Xero
-
Ratings
Customer data management / contact management8.868 Ratings00 Ratings
Workflow management7.266 Ratings00 Ratings
Territory management8.150 Ratings00 Ratings
Opportunity management8.262 Ratings00 Ratings
Integration with email client (e.g., Outlook or Gmail)7.465 Ratings00 Ratings
Contract management8.351 Ratings00 Ratings
Quote & order management8.247 Ratings00 Ratings
Interaction tracking7.159 Ratings00 Ratings
Channel / partner relationship management7.450 Ratings00 Ratings
Customer Service & Support
Comparison of Customer Service & Support features of Product A and Product B
Microsoft Dynamics 365
7.0
54 Ratings
7% below category average
Xero
-
Ratings
Case management7.950 Ratings00 Ratings
Call center management8.044 Ratings00 Ratings
Help desk management4.948 Ratings00 Ratings
Marketing Automation
Comparison of Marketing Automation features of Product A and Product B
Microsoft Dynamics 365
7.7
66 Ratings
2% above category average
Xero
-
Ratings
Lead management8.360 Ratings00 Ratings
Email marketing7.261 Ratings00 Ratings
CRM Project Management
Comparison of CRM Project Management features of Product A and Product B
Microsoft Dynamics 365
7.6
63 Ratings
0% above category average
Xero
-
Ratings
Task management7.358 Ratings00 Ratings
Billing and invoicing management7.443 Ratings00 Ratings
Reporting8.352 Ratings00 Ratings
CRM Reporting & Analytics
Comparison of CRM Reporting & Analytics features of Product A and Product B
Microsoft Dynamics 365
8.8
64 Ratings
15% above category average
Xero
-
Ratings
Forecasting9.154 Ratings00 Ratings
Pipeline visualization9.160 Ratings00 Ratings
Customizable reports8.363 Ratings00 Ratings
Customization
Comparison of Customization features of Product A and Product B
Microsoft Dynamics 365
7.7
66 Ratings
2% above category average
Xero
7.6
130 Ratings
10% above category average
Custom fields8.265 Ratings00 Ratings
Custom objects8.060 Ratings00 Ratings
Scripting environment8.247 Ratings00 Ratings
API for custom integration6.551 Ratings7.879 Ratings
Plug-ins00 Ratings7.3117 Ratings
Security
Comparison of Security features of Product A and Product B
Microsoft Dynamics 365
7.8
61 Ratings
7% below category average
Xero
7.9
165 Ratings
0% above category average
Single sign-on capability8.255 Ratings6.972 Ratings
Role-based user permissions7.456 Ratings8.8163 Ratings
Social CRM
Comparison of Social CRM features of Product A and Product B
Microsoft Dynamics 365
7.8
36 Ratings
7% above category average
Xero
-
Ratings
Social data8.235 Ratings00 Ratings
Social engagement7.436 Ratings00 Ratings
Integrations with 3rd-party Software
Comparison of Integrations with 3rd-party Software features of Product A and Product B
Microsoft Dynamics 365
7.4
55 Ratings
3% above category average
Xero
-
Ratings
Marketing automation7.455 Ratings00 Ratings
Compensation management7.428 Ratings00 Ratings
Platform
Comparison of Platform features of Product A and Product B
Microsoft Dynamics 365
8.3
47 Ratings
10% above category average
Xero
-
Ratings
Mobile access8.347 Ratings00 Ratings
Payroll Management
Comparison of Payroll Management features of Product A and Product B
Microsoft Dynamics 365
-
Ratings
Xero
7.7
73 Ratings
7% above category average
Pay calculation00 Ratings7.965 Ratings
Benefit plan administration00 Ratings8.123 Ratings
Direct deposit files00 Ratings7.749 Ratings
Salary revision and increment management00 Ratings7.541 Ratings
Reimbursement management00 Ratings7.254 Ratings
Reporting & Analytics
Comparison of Reporting & Analytics features of Product A and Product B
Microsoft Dynamics 365
-
Ratings
Xero
8.1
186 Ratings
9% above category average
Dashboards00 Ratings8.0182 Ratings
Standard reports00 Ratings8.3185 Ratings
Custom reports00 Ratings8.1165 Ratings
General Ledger and Configurable Accounting
Comparison of General Ledger and Configurable Accounting features of Product A and Product B
Microsoft Dynamics 365
-
Ratings
Xero
7.3
195 Ratings
1% above category average
Accounts payable00 Ratings8.8182 Ratings
Accounts receivable00 Ratings9.0183 Ratings
Cash management00 Ratings8.1167 Ratings
Bank reconciliation00 Ratings9.1190 Ratings
Expense management00 Ratings8.0173 Ratings
Time tracking00 Ratings7.963 Ratings
Fixed asset management00 Ratings7.9118 Ratings
Multi-currency support00 Ratings7.6113 Ratings
Multi-division support00 Ratings7.595 Ratings
Regulations compliance00 Ratings8.397 Ratings
Electronic tax filing00 Ratings8.999 Ratings
Self-service portal00 Ratings7.8110 Ratings
Global Financial Support00 Ratings6.355 Ratings
Primary and Secondary Ledgers00 Ratings7.453 Ratings
Intercompany Accounting00 Ratings5.540 Ratings
Localizations00 Ratings8.039 Ratings
Journals and Reconciliations00 Ratings9.490 Ratings
Enterprise Accounting00 Ratings3.733 Ratings
Configurable Accounting00 Ratings4.959 Ratings
Centralized Rules Framework00 Ratings4.433 Ratings
Standardized Processes00 Ratings5.459 Ratings
Inventory Management
Comparison of Inventory Management features of Product A and Product B
Microsoft Dynamics 365
-
Ratings
Xero
6.4
89 Ratings
4% below category average
Inventory tracking00 Ratings6.485 Ratings
Automatic reordering00 Ratings6.724 Ratings
Location management00 Ratings6.729 Ratings
Manufacturing module00 Ratings6.216 Ratings
Order Management
Comparison of Order Management features of Product A and Product B
Microsoft Dynamics 365
-
Ratings
Xero
6.6
89 Ratings
7% below category average
Pricing00 Ratings6.662 Ratings
Order entry00 Ratings6.756 Ratings
Credit card processing00 Ratings7.158 Ratings
Cost of goods sold00 Ratings7.066 Ratings
Order Orchestration00 Ratings6.421 Ratings
End-to-end order visibility00 Ratings6.324 Ratings
Order exception Resolution00 Ratings6.417 Ratings
Best Alternatives
Microsoft Dynamics 365Xero
Small Businesses
Salesmate
Salesmate
Score 9.8 out of 10
QuickBooks Self-Employed
QuickBooks Self-Employed
Score 9.3 out of 10
Medium-sized Companies
Creatio
Creatio
Score 9.2 out of 10
Accounting Seed
Accounting Seed
Score 8.3 out of 10
Enterprises
Creatio
Creatio
Score 9.2 out of 10
Oracle Fusion Cloud ERP
Oracle Fusion Cloud ERP
Score 7.9 out of 10
All AlternativesView all alternativesView all alternatives
User Ratings
Microsoft Dynamics 365Xero
Likelihood to Recommend
7.8
(88 ratings)
8.6
(210 ratings)
Likelihood to Renew
8.0
(20 ratings)
9.9
(32 ratings)
Usability
8.0
(18 ratings)
8.8
(135 ratings)
Availability
-
(0 ratings)
9.0
(10 ratings)
Performance
-
(0 ratings)
10.0
(8 ratings)
Support Rating
7.9
(11 ratings)
9.1
(36 ratings)
In-Person Training
-
(0 ratings)
9.1
(1 ratings)
Online Training
7.5
(2 ratings)
10.0
(5 ratings)
Implementation Rating
9.2
(4 ratings)
7.3
(10 ratings)
Configurability
-
(0 ratings)
9.0
(1 ratings)
Contract Terms and Pricing Model
3.8
(3 ratings)
-
(0 ratings)
Ease of integration
-
(0 ratings)
6.7
(95 ratings)
Product Scalability
-
(0 ratings)
10.0
(6 ratings)
Professional Services
9.0
(1 ratings)
-
(0 ratings)
Vendor post-sale
-
(0 ratings)
9.0
(2 ratings)
Vendor pre-sale
-
(0 ratings)
10.0
(2 ratings)
User Testimonials
Microsoft Dynamics 365Xero
Likelihood to Recommend
Microsoft
All told, if it hadn't been for the fact that we were testing it with both employees who knew CRM lingo and those who were new, we wouldn't have found such an issue. The program itself can be very useful for people who already manage CRMs, who know how to use them, who know how to run and manage employees on them, namely because of the "one-stop-shop" concept in data visibility. When it came down to it though, if you have high-turnover, then this product will devolve into only being used for it's base components. Down the middle, we found that the people who'd been in marketing for 4-5 years fell into the product easily because of the way it was written. Everyone before that, with novice experience, thought it was written like a textbook for a graduate class - little to no leeway if you don't happen to know one specific term
Read full review
Xero
If they are using foreign exchange I always use Xero. If I need reporting to be customized we always use Xero. If the client is already working in a software and it is working for them we will leave them in the software they are in.
Read full review
Pros
Microsoft
  • Some useful out-of-the-box features, like mass uploads of Leads from trade shows or when qualifying a Lead, CRM automatically creates the Opportunity, Contact, and Account for you, etc.
  • Really powerful customizations through the user interface to improve user experience. Things like Business Rules, for example, if Field A = 1, then Field B = 2 and Field C = 2, if Field A = 2, then Field B and Field C don't apply, so automatically hide them.
  • Or other functionality that improves user experience, like Business Process Flows. These walk users step by step through our business process, helping them know when certain actions should take place, and at what point other data is now required. We've used this extensively with our Lead to Opportunity to Quote to Order process, helping users understand the business process each step of the way.
  • Customizations built on top of the platform now called model-driven PowerApps. You can have connections to "typical" data, like Accounts, Contacts, or Opportunities, for example, but then connect that data to custom entities, records that only apply to your specific business. This is all done through the user interface and allows you to customize and automate specific line-of-business applications for your specific needs.
  • Behind the scenes, D365 CE is built on SQL. So the data conforms to industry standards and makes it much easier to interact with. Your developers and IT team will thank you.
Read full review
Xero
  • Their method of moving between screens was very logical and intuitive which is not a "given" attribute among software packages.
  • Finding transactions was relatively easy with just common sense.
  • The use of this software was generally well received in that the accountants did not discredit the software as cheap, poorly organized, or timely to learn. No one at Corporate had a vendetta against using Xero.
  • It does a good job of allowing the users to drill down to the final detail of an account balance - which is fundamental to the accounting department's needs.
Read full review
Cons
Microsoft
  • Microsoft Dynamics 365 storage & license cost can prohibit some large deployments or even cost-sensitive small projects from using the platform (although I'm certain most deployments would realize a positive ROI if implemented correctly with process automation).
  • The cost and licensing document for Dynamics 365 is 61 pages and will take a rocket scientist to understand it. It's better to just have your Microsoft help estimate the cost if they are willing to help you that.
  • The documentation on how to first fully understand the Out of the Box default solution and settings is lacking or even non-existing. This has the potential to derail Dynamic 365 launches and implementations from the gitgo. Want to use an out of the box entity?.. well it's probably related to 5 other entities that require configuration and full understanding of it to successful implement. And you ask where is the laymen guide or instructions?... User groups and forums. In Summary, Microsoft can up its game in deployment training and supporting documentation.
  • Microsoft needs to incentivize more external platforms to build app connectors for easy integration, such as ZenDesk, Slack, Tableau, etc. Even the current connector apps such as Salesforce, MailChimp, Docusign are useless or don't work at all.
  • Several limitations inhibit successful Dynamics 365 deployments such as: limited number of Rollup field calculations (summarizing fields on child/related records), limited number rows that can exported to Excel via advanced find, Dynamics 365 files, log and database storage size limit is extremely small and will always require purchasing additional storage (for Online deployments).
  • New user buy-in or acceptance or system platform changes can be difficult if a solid change management plan isn't enacted.
  • Don't expect much help from Microsoft on implementation or solutions unless it's a technical flaw with the platform. Microsoft relies on their MVP partner network to consult for implementations at a hefty cost. Hiring a knowledgeable and savvy Dynamics 365 System Administrator can reduce the need for consultant support; of course, this is dependant upon many many variables.
Read full review
Xero
  • I would like to have the ability to sign up a holding company and all its trading entities under one subscription, in order to have amalgamated and separate accounting records and reports for each trading entity.
  • This is pertaining to my own Xero business clients: I would like to have a full featured, customizable practice client support /ticketing and task manager system, with reminders that can be sent to my clients and my team for various tasks due.
  • I would like Xero to have a cheaper option for their packages that include invoicing and related documents, as in my country we have options with an opposition accounting firm that offers a subscription where clients can create up to 2000 invoices per year for free.
Read full review
Likelihood to Renew
Microsoft
CRM has allowed us to keep all of our data in one place that is easy for all users within the company to view. I came into the company after they had been using CRM for about 4 years. They have all said that since we have used this it has helped us control work processes better, it has allowed us to be able to track things so much better, and has been something that has helped unite many processes that used to be all over the place. We are currently using CRM 4.0 and are planning on upgrading in the next 18 months to the 2011 version. Support for 4.0 is almost all but dried up. Understandably so. Some of the customization we have done, and a plugins we use, are now contained within the 2011 version so we are looking forward to that upgrade. We use an email marketing company as well, and they primarily support the 2011 version, but their product connects and is integrated within CRM. This is a great benefit as well so that all of our marketing information can be contained in one location.
Read full review
Xero
In addition to the matters covered in this review, my reason for renewing this product is that Xero's functionality and the constant updates that the company provides, makes the software even more business friendly. The software therefore builds a brand loyalty among customers.
Read full review
Usability
Microsoft
My review can help others to choose the correct CRM like Microsoft Dynamics 365 CRM. I see lots of great things in Microsoft Dynamics 365 that make your business easy and smooth also MS allows users to customize the software according to their needs. So Thought I should share my experience with others.
Read full review
Xero
Xero has all the features that you need, basically. From chart of accounts, reconciling books, to making annual financial reports. What I'm currently looking for Xero right now is to provide more broader integration with the other apps so we can use it for customer-facing experience also. All in all, everything works well!
Read full review
Reliability and Availability
Microsoft
No answers on this topic
Xero
We have been actively using and 100% Xero based for our ecommerce accounting practice for over 4 years. There has on been one real outage for more than 5 minutes. Xero was open and transparent about the outage, what they were doing to resolve the issue, and provided 15 minute updates. Showing how they care about their customers and partners. Plus, showing that their customers care too, were understanding, and went surfing or in our case took a nap. Couldn't run our business without Xero as a partner.
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Performance
Microsoft
No answers on this topic
Xero
Pages generally load quickly, but it's a fairly common occurrence to have pages taking a bit longer than I'd like to load (as in, 4+ seconds). Occasionally I have to refresh a page to get it to work. Bank feed and integrations tend to be slow in general, but that could easily be due to API latency on the side of the other parties. Most of the time, though, the bank feeds refresh before I login so it's not a huge problem. Not necessarily good performance compared to a local app like QuickBooks desktop, but definitely good performance for a cloud application. Room for growth? yes.
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Support Rating
Microsoft
Our partner, Ledgeview Partners has been FANTASTIC to work with. They are always timely in their response and have taken time to understand our business and our specific needs. We've made a lot of advanced customizations and they have been a great help in making those updates.
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Xero
Always respond and keep issues open until you are satisfied with the result. Generally good responses, in the past, I had some support responses that were really basic and really annoying. They type where "have your tried restarting your computer" style of answers. Well, of course, I went through all the basics before contacting them. Duh, but I suppose not everyone does. Otherwise, it would be a 10. The last year has shown a marked improvement in the support responses however.
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In-Person Training
Microsoft
No answers on this topic
Xero
The format was great; someone was there to ask questions or help if you were stuck.
Read full review
Online Training
Microsoft
No answers on this topic
Xero
All of Xero's training is online and available for anyone (business owner or accountants) to learn and become experts in their system. There is a range of content from product training to real world webinars from their partners. Xero is beautiful accounting software and their training is the same.
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Implementation Rating
Microsoft
We used a data warehouse to house our data, and our IT team and implementation vendor worked diligently ahead of time to construct idea implementation plans. Out of millions of records- we had less than a dozen errors, which is remarkable. My major insight is simply having a group of completely devoted individuals working towards your goal who fully understand the desired outcome. Focused resources for implementation season are critical to success.
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Xero
If it can be done, time the implementation near a new fiscal year so you can start clean. Otherwise, you have to go back and do historical data from the beginning of the fiscal year, which can be brain draining.
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Alternatives Considered
Microsoft
Salesforce has more desirable functions than Microsoft Dynamics 365, at a competitive price. Its user interface is far more superior, it has more customization, easier customization, and out of the box it is more pleasing to the eye and to the end user. If the client doesn't have a deep-rooted connection with Microsoft I wouldn't leap to Dynamics 365.
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Xero
I've used a lot of different accounting systems. Many of them so big and powerful, but a hassle to get set up. Xero is light, inexpensive, and easy to use. When I originally selected them they seemed like they were developing new features at a quick rate as well. I was invited to be part of focus sessions to make the product better. That part has slowed down significantly though.
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Contract Terms and Pricing Model
Microsoft
On our purchase, I'd been interrogated about our usage. Our needs are met by Microsoft Dynamics 365, which is simple to use. With so much data and information available, we must ensure that it is presented correctly to managers. Due to a lack of use, we don't have to spend as much money on Salesforce.
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Xero
No answers on this topic
Scalability
Microsoft
No answers on this topic
Xero
I have yet to fully stress test the product given the size of the company where I am using it. I am sure as we scale to more customers, more vendors and more reporting requirements, I will have a better understanding of what it is capable of in terms of bandwidth and processing
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Professional Services
Microsoft
My company's preferred program right now is Microsoft Dynamics 365. We use it to keep track of customers and important sales metrics in a streamlined manner. Anyone familiar with CRMs will find the tool extremely useful. Considering that we have a good turnover, this product will be used for its basic segments. As a result, there are few chances of error with Microsoft dynamics because it is so easy to use. Many options for recording data on these leads are available. It meets our needs and pays off.
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Xero
No answers on this topic
Return on Investment
Microsoft
  • It is hard to say, the reason why we are using Microsoft Dynamics CRM is because it is provided to us for free.
  • It could be worthwhile to investigate whether an alternative CRM (even though paid) can be used to boost the ROI
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Xero
  • Saved many hours through automatic invoices and followups
  • Saved many hours by allowing transactions to start via bank feeds (ie I don't have to input a transaction and mark it against what is in the bank/cc account; rather, the transaction in the account is where you input the transaction into the books.
  • Has the scalability my business requires, and not much more.
Read full review
ScreenShots

Xero Screenshots

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