Pegasus Opera 3 SE, Xero and Microsoft Dynamics 365 Business Central are comprehensive solutions for managing finances, invoicing, and reporting in small and medium-sized businesses (SMBs). However, they cater to slightly different needs, and are aimed at businesses at different stages of their development. In this document, we will take a look at what the differences are, and how this might make them suitable for particular businesses.
Target Business Size
While there is some overlap, these three software solutions generally target different business sizes, let us take a look at the three solutions:
Xero: Small to Medium Sized Businesses
Xero is primarily designed for small to medium sized businesses and is a great choice for start-ups or businesses in the early stages of growth. It is particularly well-suited for service-based businesses, retail, and other industries with relatively straightforward operations.
Pegasus Opera: Medium Sized Businesses
Pegasus Opera caters to businesses with more complex needs, often with a manufacturing or distribution focus. It is designed to manage a larger volume of transactions and a more intricate business structure.
Dynamics 365 Business Central: Medium to Large Enterprises
Business Central is a comprehensive ERP system that can support businesses with hundreds or even thousands of employees. It is suitable for organisations with complex operations, multiple locations, and a need for advanced functionality.
Scalability
When considering a software platform for your business, you should always consider how easily the software can adapt to your future growth.
Xero: Not Very Scalable
While Xero can manage growth to a certain extent, its scalability is primarily designed for small businesses, and those looking at growing quickly will soon find they outgrow the system and will have to invest in another.
Pegasus Opera: Very Scalable
Pegasus Opera offers a higher level of scalability than Xero. It can accommodate the growth of medium-sized enterprises and manage more complex business processes. Being modular, with Opera, you can start off with the modules you need, and add more functionality as your business grows.
Dynamics 365 Business Central: Scalable from medium to large busine
Designed as an enterprise-grade solution, Business Central excels in scalability. It can accommodate rapid business growth, manage high transaction volumes, and support complex operations. Its architecture allows for ahigh level customisation and expansion as your business evolves. However, due to its all-encompassing nature, Business Central may not be suitable for small businesses.
Deployment
Xero: Cloud-based
Xero is exclusively a cloud-based solution. This means it is accessible from any internet-connected device, making it highly flexible for businesses and their employees. There’s no need for on-premise hardware or software installations.
Pegasus Opera: On-premise or Cloud-based
Pegasus Opera offers both on-premise and cloud-based deployment options. An on-premise deployment requires the software to be installed on the company’s servers. Hosting can also be provided by Synergy Technology through a third-party provider, like Citadel Technology.
Dynamics 365 Business Central: Cloud-based
Similar to Pegasus Opera, Dynamics 365 Business Central can be deployed either in the cloud or on-premise. However, that means that you need to have sufficient IT resources in-house to install product updates and maintain your software and hardware. Also, there are some features that are not available with the on-premise version. You can find out more here: Features not implemented in on-premises deployments of Business Central | Microsoft Learn.
Configurability
Configurability refers to the ability to modify a software system to fit a company’s specific business processes without the need for bespoke coding and customisation. Let us compare the three platforms:
Xero: Low Configurability
Xero is primarily focused on accounting and financial management. While it offers some customisation options for workflows, reports, and dashboards, its core functionality is relatively fixed. It is best suited for small to medium-sized businesses with straightforward financial needs.
Pegasus Opera: Medium to High Configurability
Pegasus Opera is a more comprehensive ERP system that allows for a higher degree of customisation. It offers options to modify workflows, screens, and reports to align with specific business processes. This makes it suitable for businesses with more complex operations and industry-specific requirements, especially those in the mild Manufacturing or Distribution Industries.
Microsoft Dynamics 365 Business Central: High Configurability
Business Central is a highly configurable cloud-based ERP system. It offers extensive customisation options through its development environment, allowing businesses to tailor the system to their exact needs. This includes modifying user interfaces, workflows, reports, and even adding custom fields and tables. This configurability will come at a cost, as it will have to be done by a Microsoft partner, such as Synergy Technology.
Functionality & Features
Xero: Accounting, invoicing, and cash flow management
Xero is a cloud-based accounting system best suited for small to medium-sized businesses with straightforward financial needs. It features automatic bank reconciliation to save time and reduces errors, as well as invoicing and payment tracking features. However, it may fall short for businesses with complex operations, or those that need inventory management, or have specific industry requirements.
Pegasus Opera: Comprehensive suite of features for medium-sized businesses
Pegasus Opera is a robust ERP system that offers a comprehensive suite of features for businesses. It covers a wide range of business functions, including finance, sales, purchasing, inventory, manufacturing, and distribution, available as separate modules that can be purchased as you need them. It is best suited for medium sized businesses with complex operations and specific industry requirements.
Microsoft Dynamics 365 Business Central: All-Encompassing Business Management Features for Medium to Large Enterprises
Microsoft Dynamics 365 Business Central offers a wide range of features covering finance, sales, purchasing, inventory, manufacturing, and more. Business Central comes with all of these enabled by default, so it is not modular like Opera, although you can have parts of it hidden if you do not want to use them to streamline your user interface.
Licencing & Payment Model
Understanding the licensing models of any software system is crucial in determining the overall cost of ownership. Let us look at the differences in licencing between the three.
Xero
Xero runs a cloud-based subscription model, with users paying a monthly fee based on the number of users and the specific features required. Xero has several different plans with varying levels of functionality, accommodating businesses of different sizes. Users may incur extra fees for add-ons, integrations, or support services.
Pegasus Opera
Pegasus uses a perpetual licensing model, with users purchasing a license outright, with ongoing maintenance fees. Cost is determined by the number of users, and which modules you select, again you only pay for the functionality you need. If you choose a cloud deployment, there will be a cost for this as well.
Microsoft Dynamics 365 Business Central
Similar to Xero, with Microsoft Dynamics 365 Business Central users pay a monthly subscription fee. It offers a number of different licences with tiered pricing based on level of access to various parts of the software. Microsoft also offers read-only access to Business Central through Microsoft 365 licenses, as an addition to Premium or Essentials plans.
Choosing the Right Solution for your Business
So, which of these three solutions is right for your business? The answer is that each of these solutions may be right for you depending on what type of business you have. Xero is a good choice if you are a small business or start-up and need a basic online solution with limited functionality and customisation options.
Pegasus Opera 3 is a good fit if you are a small-to-medium sized business, and you need a highly customisable solution with specific functionalities or prefer on-premise deployment.
If you are a larger business and want a cloud-based, all-in-one solution with easy integration with Microsoft products and a wider range of third-party apps, then Dynamics 365 Business Central is ideal.
Want More Information on Xero vs Pegasus Opera 3 vs Microsoft Dynamics 365 Business Central?
The Synergy Technology team is proud to be an official partner of Pegasus Software and a Microsoft Gold Partner. We offer Pegasus Opera and Microsoft Dynamics 365 Business Central solutions throughout the UK. We also offer integration with a number of other platforms. Find out more by visiting our add-ons and integrations page.
To learn more about anything in this news article, or to book a demo, please contact the Synergy team today. You can call us on or send us an email via our contact page at any time and we will be delighted to assist you.
