How to Decide When to Enhance Business Central with AP Automation
Learn when Microsoft Dynamics 365 Business Central meets your AP needs and when growing complexity signals it's time to consider AP automation.
The Bottom Line
Microsoft Dynamics 365 Business Central handles AP well for many organizations, but growth can introduce complexity that creates inefficiencies, risks, and bottlenecks. The real question isn’t whether the ERP is enough but whether AP processes have kept pace with the business. Understanding that distinction helps Partners identify when automation can deliver meaningful value.
Microsoft Dynamics 365 Business Central has earned its place as one of the most popular ERP solutions for small and mid-sized organizations. It offers a strong financial foundation, supports business growth, and provides the flexibility companies need as they evolve.
For many businesses, Business Central is more than enough.
But as a Microsoft Partner, you know that "enough" depends on what the organization is trying to accomplish.
An important part of successful accounts payable (AP) modernization is understanding when Business Central is sufficient and when processes, risks, or complexity demand more than standard functionality.
When Business Central Alone is Enough
For many organizations, Business Central handles Accounts Payable effectively right out of the box.
A client may not need additional AP automation if they:
Process a manageable number of invoices and payments each month.
Operate as a single legal entity.
Have straightforward approval processes.
Rely on a small number of payment methods.
Maintain strong visibility over vendor and payment activity
Have sufficient staff capacity to handle routine AP tasks manually.
In these situations, the best investment is often process optimization and user adoption, not additional software.
The Challenge Usually Isn't Business Central
As a Microsoft Partner, you’re often the first to hear when a client becomes frustrated with an Accounts Payable process. The initial assumption is sometimes that the ERP has become a limitation, but that's not always the case.
Many growing organizations are still well-served by Business Central.
But as clients grow, they add vendors, legal entities, approval requirements, payment methods, and compliance obligations, and soon processes that once worked smoothly start to require more effort.
While these challenges are real, Business Central is rarely the issue. Often, the problem is that the client's AP processes haven’t kept pace with the growth of the business.
Understanding that distinction can help partners identify the real source of friction, and recommend solutions that address the underlying challenges rather than the symptoms.
Understanding AP Maturity in Business Central
A common challenge for partners is determining whether a client is experiencing a temporary growing pain or has reached a point where AP processes need to evolve.
One way we can help you evaluate AP requirements is through what we call the AP maturity curve. Not every organization needs advanced automation on day one. Different stages require different capabilities.
- Foundational Stage: The organization has a straightforward AP process and a manageable payment volume. Native Business Central functionality often works well.
- Growth Stage: The business begins adding vendors, staff, locations, or payment complexity. Manual tasks become more noticeable.
- Scaling Stage: The organization operates across multiple entities, approval chains become more complex, and payment processing consumes significant staff time. This is often where automation starts delivering measurable value.
- Optimization Stage: The organization focuses on efficiency, fraud prevention, compliance, vendor experience, and strategic use of AP resources. The conversation shifts from processing payments to improving business outcomes.
Signs that a Business Central Client May Need Additional AP Automation
How do you know when Business Central may need additional AP automation?
Common indicators include increasing payment complexity, multi-company operations, approval bottlenecks, growing compliance requirements, and AP teams spending excessive time on manual administrative work.
Not every AP challenge requires additional technology, but there are common patterns that suggest an organization may be reaching the limits of its current processes.
Recognizing these patterns can help you separate temporary frustrations from opportunities for meaningful improvement.
Here are some common warning signs that Business Central alone may no longer be enough:
1. Payment Processing Requires Too Much Manual Effort
Many AP teams find themselves spending large portions of their week creating payment batches, managing multiple checkbooks, and handling payment exceptions.
When routine payment processing starts pulling staff away from higher-value work, automation becomes worth evaluating.
2. Multiple Companies Create Duplicate AP Work
Multi-company environments introduce additional complexity.
We often see this after an acquisition or rapid expansion. The ERP remains stable, but AP teams suddenly find themselves repeating the same payment activities across multiple entities, creating duplicate work and increasing the risk of errors.
As the number of companies grows, the efficiency gains from centralized processes become increasingly important.
3. Approval Bottlenecks Are Delaying Payments
Approval workflows often work well when there are only a few stakeholders involved.
As organizations grow, approvals can become more difficult to track and manage. Delayed approvals can impact vendor relationships, payment timing, and overall operational efficiency.
4. Vendor Compliance and Fraud Risk Become Larger Concerns
Growth typically brings increased scrutiny around internal controls.
Organizations may need stronger processes to validate vendor information, screen for compliance concerns, and ensure payments follow established policies.
The larger the organization becomes, the more important these controls become.
5. AP Staff Spend Too Much Time on Administrative Tasks
One of the clearest indicators that additional automation may be needed is when talented employees spend most of their time performing repetitive administrative work.
Organizations rarely hire accounting professionals because they enjoy clicking the same buttons repeatedly.
When AP teams are buried in manual work, opportunities for improvement become easier to identify.
Start with the Process, Not the Solution
To support the best possible results, we recommend that Partners do not approach AP challenges with a predetermined solution. Instead, try starting with questions such as:
What is consuming the AP team's time?
Where are delays occurring?
Which processes create the most frustration?
What risks are keeping leadership awake at night?
The answers often reveal whether the issue is training, process design, staffing, or technology. Sometimes, process changes and training investment are enough for the organization to continue using Business Central alone.
But for growing organizations, simplifying and strengthening AP processes with additional automation inside Business Central can lead to a healthier, more efficient and secure workflow.
For many partners, the opportunity lies in helping clients align their AP processes with the needs of a growing business and identifying opportunities for tools that support efficient, scalable AP processes.
How Microsoft Partners Can Recognize When AP Processes Need to Evolve
Most organizations don't wake up one day and discover they've outgrown Business Central. What they discover is that the processes surrounding Accounts Payable no longer fit the scale of the business.
The ERP is still working, but the business has evolved.
Recognizing that distinction matters. It shifts the conversation away from software features and toward business outcomes. That's often where the most meaningful client relationships are built; not by replacing what works, but by helping clients navigate what's next.
If you're evaluating AP challenges with a Business Central client and want a second perspective on the process, the Mekorma team is always happy to compare notes.
