Advantages and Disadvantages Of Tally

Tally is one of the prominent enterprise resource planning software used widely across the world. It has been a major accounting software for businesses looking to customize and record their transactions and business happenings. The ease of working with Tally and the way it is integrated has made every small to large size business adopt it as part of their account maintenance and handling. It’s swift, easy to run, and highly customizable allowing businesses to add newer modules as per their need.

Tally is extensively known for its wide array of usage and its availability. It is available in both desktop and cloud-based options allowing users to run the program from anywhere. The basics of the program are easy to master and even people with no prior background in accounting can easily learn and manage it. The desktop version of Tally requires installation of the program to run while the cloud-based one can be run from any internet connection. It is compatible with all major operating systems like Windows, Mac, and Linux.

The use of tally has been synonymous with accounting and its usability in generating invoices, financial transactions, and bookkeeping. It has many advantages and a few peculiar drawbacks too. We here will take a look at both sides of the software and discuss them in brief. Read along.


Advantages of Tally

1. User-friendly and intuitive interface

Tally is pretty simple to use and has an easy-to-use kind of interface allowing people to access and run the software with ease. It’s user-friendly and intuitive with tons of ease of access points that allow for keyboard shortcuts and more to run smoothly and efficiently. Since it’s a bookkeeping tool, the entire design is made with the onus of providing easier navigation and running mechanism so the users can check the different aspects of the accounts, make entries, and more without any hassle.

2. Economical and cost-effective

When compared to other bookkeeping and ERP software, Tally is substantially cost-effective and economical to use. Unlike SAP and other software, Tally has reasonable pricing and can be used to manage the entire bookkeeping and accounting of the company from one software. This puts them as a very prominent choice for small and medium-scale businesses looking to find value-for-money products for their business handling. It also comes with add-on options for users and various modules so the user has the option to choose the picks he wants and not need to buy the full program module like other software.

3. Effective Bookkeeping

The basis of any accounting software or ERP is the way it can help in the efficiency of the company’s accounts and other aspects like inventory management, generating invoices, tracking accounts, and billing schedules, and keeping an overall view of the entire financial management from one tool. This is where tally excels as it provides the company with everything they are looking for in one single tool. The way it can allow users to manage inventories, and track the logistics and the payment cycle without the need to go through multiple software helps it to keep its place as one of the top programs to use.

4. Customisation and variety of modules

Tally has an easy-to-set-up customizable option to cater to the specific needs of the business. Any business enterprise can set up the customization that they need and only pay for those things as part of the subscription. Furthermore, various additional modules come with tallies like inventory management, invoicing, banking, taxation, purchase and sales management, payroll management, accounting and finance, and much more. This means that businesses involved in certain fields of work can only choose to get those additions and modules and still fulfill their business needs with ease.

5. Easy accessibility and connectivity

Since Tally is a cloud-based ERP software, it can be accessed from anywhere in the world with just a mere internet connection. This means that the business enterprise with employees spread across the city or the countries can still work and collaborate on the same tool without any inconvenience. That makes it smoother for the work shift that we are witnessing where people from different backgrounds and locations work in the same company.

Disadvantages of Tally

1. Limited product feature

Despite Tally’s large-scale use and varied add-ons and modules there are still various product features that are lacking with it. For say, different ERP tools and programs now come with project management capabilities and even a time tracking basis, something that tally doesn’t feature. This alongside many other advanced integrations that businesses these days need is lacking and hence large corporations are shifting to other ERP software.

2. Requires trained personnel to use

Tally though easy to use and having user-friendly interaction, still requires skilled and trained personnel to handle it. A fresher or an untrained personnel won’t be able to run or handle tally on his own and this means there’s a learning curve to it. For that, proper trainers may be needed and even the training process will be time-consuming. This is often a demerit for business organizations who need to run the thing on the go.

3. Limited support

If there’s one major concern about Tally it’s the way the support system doesn’t do any good for the user. Customer support and assistance are minimal and lacking and oftentimes cannot solve the queries of the users. This makes it a less attractive option to large-scale accounting software who have top-notch customer support systems and guidance to help them out.

4. Data security

Another drawback associated with tally is the data security and the encryption of it. Many other software have better data security and recording measures than tally. Furthermore, when you use a tool for all your accounting and financial management, you need to have the top data security and trust factor so that it won’t be breached or hacked.

Final words

Tally is one of the major ERP software used around and many businesses ranging from small-scale to large scale use it for their accounting and financial management work. The wide array of uses, cost-effective options, and easy customizable features have made tally a good pick for businesses looking to move to a systematic bookkeeping system. However, there are a few drawbacks too and we touched upon them in the above pointers. We hope this gives clarity on both sides of the story.


Sumit Kumar Yadav has experience analyzing business and finance of big to small companies. Loan, Insurance, Investment data analysis are his key areas.