Microsoft Dynamics 365 Solutions for Growing Companies Expanding Abroad

When analyzing business requirements for a new information system, we often encounter recurring problems. This article summarizes the most common challenges faced by CFOs of mid-sized and large companies, along with ways to address them using modern ERP Microsoft Dynamics 365.

Challenge 1 – Timely Reporting of Consolidated Financial Results

Access consolidated financial results for your entire group on time with advanced reporting tools.

This issue affects nearly all companies operating internationally. Reporting financial results to management and shareholders is often time-consuming — preparing the data for the entire group may take days. As a result, reporting happens only monthly, limiting management’s ability to make timely decisions.

Data from subsidiaries arrive gradually and must be transformed to ensure consistency — aligning financial dimensions, mapping national chart of accounts to a unified reporting structure, and converting local currencies into a single reporting currency at the correct exchange rate. Only after transformation can consolidated reports be generated.

The key advantage of Microsoft Dynamics 365 is that all company transactions across the group are recorded in a single system and database. This enables real-time reporting with no delay. Shared data models eliminate the need for manual transformation — for example, shared charts for dimensions, assets, and products. When all entities use the same financial dimensions and organizational structures, reporting becomes immediate.

In some cases, mapping is required — such as linking local and reporting charts of accounts. Local expenses and revenues automatically map to consolidated reporting accounts. The system provides flexible configuration of exchange rates used for currency conversions. Dynamics 365 supports multi-layer accounting for local standards, IFRS, or US GAAP, and includes the Management Reporter tool for automated report generation and distribution.

Challenge 2 – Costly Expansion into New Countries

Many Czech companies expanding abroad face legislative and operational challenges with local compliance. Their existing local ERP systems often lack support for foreign taxation, VAT reporting, EET, Intrastat, or country-specific accounting standards, making maintenance complex and costly.

Focus your energy and financial resources on your business — not on managing system compliance updates.

Microsoft Dynamics 365 is designed for international scalability. It offers built-in localization for 36 countries and allows seamless expansion without expensive system adjustments. Implementation for a new branch consists of three simple steps: creating the company entity, applying built-in legal configurations, and adjusting settings — all without programming.

Next comes data migration. With shared catalogs (products, dimensions, organizational structure), there’s no need to migrate those again — just enable access for the new entity, saving both time and cost. The final step involves configuring key business processes — purchasing, sales, logistics, and production — where saved resources can be invested for maximum business impact.

Full description of the EET solution for Dynamics AX (PDF)

Challenge 3 – Will We Have Enough Cash?

Another frequent concern among CFOs is lack of visibility into current and future cash positions. Many companies cannot reliably forecast liquidity for the next 14 or 30 days, making it hard to plan expenses, evaluate loan needs, or time investments effectively.

Dynamics 365 offers a Cash Flow Forecast tool that aggregates data from receivables, payables, and tax obligations to predict future cash balances. The more input data available, the more accurate the projection. The tool can also include budgets (e.g., payroll, rent), assets (depreciation), HR (future hires and payroll costs), and projects (contractor payments, milestones, and billings). Predictive purchasing and sales models extend this insight even further.

As a result, cash flow forecasting in Dynamics 365 leverages all relevant financial and operational data to provide a clear outlook for decision-making.

Summary

This article covered three common CFO challenges and how Microsoft Dynamics 365 addresses them:

1. Timely consolidated financial reporting through built-in consolidation and reporting tools.
2. Cost-efficient international expansion using built-in localization for 36 countries and shared master data.
3. Accurate financial forecasting with Cash Flow Prediction integrating data from Receivables, Payables, Budgets, Assets, Projects, and Sales/Purchasing forecasts.