Disadvantages of Tally accounting and ERP software

Disadvantages of Tally accounting and ERP software

We believe that software provides us with better business and makes our life easier as it helps in getting all our work done faster. And yes we all agree on that and there are various software that helps us run our business better with all the features and benefits that they provide.

But at times there are certain drawbacks that we might face due to the software that we have chosen when there are many other software that have already attended to such issues. Hence you will have to watch out for such disadvantages while getting a software. There are several software that made their place in the market but contain a lot of disadvantages and you can make a right choice and spare yourself from the trouble that comes with it.


Lets us look at the disadvantages of Tally accounting software here below:

  1. 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.
  2. 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.
  3. 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.
  4. 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. 
  5. 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.
  6. 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.
  7.  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.
  8. No CustomizationCustomization 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.
  9. 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.
  10. 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.

Disadvantages of Tally accounting and ERP software

Reach accounting and ERP software is an entirely cloud based software therefore your accounts can be saved safely in the cloud providing backup. It has bank level security for your accounts with limited accessibility for others except you. You can access it from anywhere as it only requires net connection and is mobile friendly as well.

Reach can be customized hence it is user friendly and is very easy to operate. It allows you to manage your entire business with its special features that helps in taking care of every department and it integrates with other software.

1. Initial Investment

Tally Reach
Product Name Tally Platinum Reach Gold
Price for 30 users 360000 54000
Cost of a Dell PowerEdge T130 tower server 207285 Free
Price of LAN and Network Cabling for 10 computers (Unless already there) 35000 Not Needed
Anti-Virus Protection (Multi Computer Norton. 5 units is 2K) 4000 Free
TOTAL COST 606285 54000


2. Annual Cost

Tally Reach
Product Name Tally Platinum Reach Gold
AMC, Renewals 72000 10800
SMS Cost (200 sms per day) 14885 Free
Version Upgrades 72000 Free
Anti-Virus Renewal 4000 Free
Support of Network Engineers for LAN related issues 6000 Not needed
Internet Cost ( Unless its already available ) Not needed 6000
TOTAL COST 168885 16800


3. Accessability

Tally Reach
Product Name Tally Platinum Reach Gold
No. of Locations you can access from Only within the office Any computer with Internet
No. of users who can access at the same time < 10 Unlimited
No. of users who can work on the same window at a time 1 Unlimited
No. of Companies you can create Unlimited 1
Devices you can use to access Computer only Computer, Tab, Smart Phone
Userbased restriction on which companies they can work on Possible Possible


4. Feature Comparison

Tally Reach
Product Name Tally Platinum Reach Gold
CRM Not Available Available
Sales Team Management (Like Salesforce with Mobile App for executives) Not Available Available
Freeze Entries by Owner Not Available Available
Payroll Available Available for additional cost
Project Management Module Not Available Available for additional cost
Manufacturing Module Not Available Available for additional cost
Repair Management Module Not Available Available for additional cost
Quality control Not Available Available for additional cost
Automatic Workflow Not Available Available
Automatic back up every 3 hours to protect Hard disk crash Not Available Available
Customise additional reports and templates Not Available Available



Reach accounting software includes features like:

  • Dashboard
  • Billing
  • CRM
  • Repair
  • Accounting
  • Purchase and expenses
  • API

Reach ERP features:

  • Project management
  • Invoices
  • Expense management
  • Accounting
  • Inventory management
  • Bulk messaging
  • Lead management
  • Mobile app

For queries and more information click here. For 15 days free trial of Reach accounting software click on >> Demo

For 15 days free trial of ERP software click on >> Demo

I’m a tax expert with over 10 years of professional experience. I’ve gained practical insights on GST and other Taxes during my tenture as a Tax expert and GST Trainer in Reach Accountant.

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