Thinking of purchasing Tally ERP 9? Read this article before making that decision.
Just because Tally is an FTA registered software does not make it a good solution nor does it mean that you cannot choose any other software that is not FTA registered.
Disadvantages of Tally ERP 9
1. Not user-friendly at all. I have met many CEO’s and In-House Accountants who contact me soon after setting up Tally ERP 9 and ask me to provide them with our accounting services simply because they realize how complex it is to use Tally ERP 9. Unless you are a qualified accountant or have employee a qualified accountant with at least 2 years’ experience Tally ERP 9 is just not user friendly and thus not appropriate for small businesses with limited resources.
2. Single screen software. Tally ERP 9 does not allow you to work on more than one ledger at a time which makes it difficult to review work whilst making entries into the ledger. This is a very basic function and means that it really slows down the accounting process.
3. Useless paid upgrades. You have to purchase any upgrades and in fact there is little noticeable difference between Tally 4 and Tally 9 but the cost of upgrading is expensive as you require call out from Tally Partners and typically this will cost between AED 1000 and AED 2000 per installation.
4. Not ideal for multi-branch. The only way to operate tally from multi-sites is to use VPN and this is hardly practical today. To make it effective you have to invest in servers and LAN bundled with Tally.net and then don’t forget the consultancy and implementation costs.
5. No flexibility on Chart of Accounts. The default setting button is not provided and if you want to change the setting after configuration settings are done you will 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. This makes Tally 9 very rigid and difficult to use.
6. No central support. Tally 9 is not supported centrally by Tally itself and instead you have to rely on the partner network and the fees charged can vary significantly as well as the level of expertise, not always related.
7. Low Security. Do not lose your password as it is difficult to retrieve data without the password and very time consuming.
8. Loss of data. Since Tally ERP 9 is desktop or server based the risk of losing your data is huge should your machine crash or become infected by a virus.
9. No customization or module integration. It is not possible to custmise Tally 9 or integrate with any other software.
Still thinking of purchasing Tally ERP 9?
I didn’t think so.
As an alternative consider Xero Cloud Accounting Software. We are a xero certified silver partner in Dubai and provide the software free of charge as part of our vat accounting packages: https://profitsplus.ae/our-plans/
Profits Tax Consultants is a tax consultancy and accounting firm based in Dubai and licensed by the DED. We provide fixed fee accounting services to businesses all over Dubai and Sharjah. We provide free VAT compliant cloud-based accounting software and we are the only firm in the UAE to provide real-time accounting services through our unique cloud powered business model. Visit us on www.profitsplus.ae
This article was written by Ali Afzal, a tax consultant in Dubai and the Managing Director of Profits Tax Consultants. Connect with me on Linkedin: https://www.linkedin.com/in/aafzal1/