Advantages & disadvantages of tally
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Tally has several advantages for businesses including enabling effortless data movement across departments, reducing expenses associated with data collection and transfer, and facilitating fast transaction processing. However, it also has some disadvantages such as being not very user-friendly, limiting customization options, and posing risks of data loss or intrusion due to its offline nature. It is also not ideal for multi-branch businesses that require real-time syncing of data across locations. Overall, while Tally provides benefits for basic accounting needs, it has limitations for more advanced or complex business requirements.
Advantages & disadvantages of tally
- 1. Advantages & Disadvantages of Tally
- 2. Advantages • Enables effortlessness data Movements • Less expenses on data collection and data transfer of files • Fast data files transaction • Human errors is eliminated on the data • To get easy and fast documents accesses • Promotes business development activities
- 3. • For better sales promotion’s • Industry specific software sides • Web enabled services • Easy to use and handle
- 4. Enables effortlessness data Movements • The main benefit of accounting software is when the data is entered through the Application; it is updated throughout the Programs. For example: If a person makes some entries in stock, the data has been updated at every department level and in every management. The employers can view the updated data files at their software terminal. No need to move the data file from one department to other. Everything happens automatically at the main server or at the main database, as the information has been automatically updated.
- 5. Less expenses on data collection and data transfer of files • The data of inventory and accounting is required at almost every business unit be it a small business or a corporate businesses, and accounting software helps you to save money and time consuming also spend on maintenance of paper files and accounting data.
- 6. Fast data files transaction • The manual process of accounting and spend more time on calculations is prevented through accounting software.
- 7. Human errors is eliminated on the data • The software does its job on time without error and the company officials get time to concentrate on core business activities. If a company gets exact file information and exact figure on time all activities, it can make fore cast for further processes and make strategies documents to improve the business. The time spent on handling accounting books and resources is reduced and non mistakable of errors.
- 8. To get easy and fast documents accesses • Each and every data entry gets updated in the software and you can make easy way of getting reports of every week, month, quarter or year in minutes.
- 9. Promotes business development activities • Around Business areas improved through accounting software’s for sales, inventory management, merchant accounts, budget, asset management, taxation and payroll. Some accounting software, providing legal services and important dates files are flashed to remind of the priorities in a minute.
- 10. For better sales promotion’s • Accounting software not only benefits for the business owners, but the employees and customers are also benefited from the features. The process of monetary transaction speeds up on the use of a software and customer are satisfied to get quick services and getting more value on the services.
- 11. Industry specific software sides • There are many of industries specific accounting software, designed for manufacturing or construction sector, etc.
- 12. Web enabled services • Web enabled accounting software can be used if the company has branches at many geographical locations, in that time it reduce the time consuming problems.
- 13. Easy to use and handle • You can conduct every day business transactions through your accounting software and you may even make payment online through the software to your clients or you can receive payment through online transaction.
- 14. Disadvantages • Not User-Friendly • Single window software • No Useful Upgrades • Is not ideal for Multi-branch • Not Flexible • No Central Support • Low Security • No Customization • Risk of Data Loss and intrusion
- 15. Not User-Friendly • Tally fails to be an user friendly software. It does not help you use it with ease. It is of course a simple software but not everyone can grasp the knowledge of accounting soon after installing. Hence it fails to guide its users in a simple way on how to use it when you do not know have much knowledge about accounting.
- 16. Single window software • It does not allow to open the same transaction screen from multiple computers. Therefore it becomes time consuming unlike other software that allows you to work on more than one ledger at a time. Tally allows only one ledger at a time which makes it difficult for the user to view other things in it at once.
- 17. No Useful Upgrades • They have brought out new versions of Tally but the improvement has been bare minimum. There was Tally 4.5 and till Tally 9 ERP but the difference is hardly noticeable. And in case you have got yourself the old Tally then you cannot improve it with new features that the latest version has, which is one of the biggest drawbacks of this software. You are stuck with one kind of tally as the developers does not care to check on the old existing Tally that are still being used. However they have now made it possible to move from 7.2 to 9 and it is a good start.
- 18. Is not ideal for Multi-branch • In case you have multiple branches, Tally becomes way too expensive to run. You will have to invest in Servers and LAN bundled with Tally.net. Further more the sync is not real-time. It needs manual sync and the data is not updated if the accountant is not available in any of the branches to sync manually.
- 19. Not Flexible • The default setting button is not provided. In case you want to change the setting after the configuration settings are done. You have to restart and delete all the ledgers and start again from the beginning. Once you have created the journal voucher it is not possible to make changes in it. In Tally ERP once you have set the level of the items in the inventory you cannot set the level once again after the reorder. This makes it very rigid and difficult to use.
- 20. No Central Support • The support system of this software is still lagging behind and that makes it difficult for the users to find support when there is any issue with the software. It makes the users find even more difficult in operating it as there are no good supports from the other side to help them out with the training on how to use it.
- 21. Low Security • You have to be very careful with the password as well. Once you lose or forget the user password the retrieving of data is very difficult and quite time consuming. Also there is a alarming possibility of losing the data in case of a virus or hard disk crash.
- 22. No Customization • Customization is very limited. When they customize their product for you, you do not get the complete package and it makes it even more difficult for you to work with as you pay the price but then you have to settle for minimum.
- 23. Bad Integration of Invoicing Modules • Tally does not have any modules that you can call as an extra feature that results automatically when using a feature that already exists independently. So it does not provide account payable, receivable, etc; unlike quickbook and other software.
- 24. Risk of Data Loss and intrusion • As it is an offline software therefore it has no backup in case your system crash or some mishap takes place. Therefore you have to separately back up your data which gives birth to extra work.