The accounting software market is expected to exceed $20 billion by 2026. In such a booming market, it may be difficult for companies (especially startups) to know which software is the best choice for their company.
As a small business owner, you probably wear a lot of hats and take on many duties. But did you know you can significantly decrease your workload and streamline your financials with accounting software?
In this comparison, we'll discuss two top accounting software options: Quickbooks vs Tally. Keep reading to learn more about the similarities, features, and differences.
QuickBooks vs Tally: An Overview
QuickBooks and Tally both offer cloud-based reporting for your financials. While each offer various other accounting features, they do have distinct differences that we'll cover below. Keep reading here to learn the pros and cons of both software.
QuickBooks may be one of the most popular accounting software in the industry. Developed by Intuit, the company went public in 1993 and has only continued to grow. With several pricing plans available, this is an ideal software for small businesses, independent contractors, and freelancers.
Features of QuickBooks Online
The features available for QuickBooks vary based on the plan you choose. The higher the monthly payment, the more features you unlock. Prices range from $25 to $180 a month.
- Income and expense tracking
- Inventory tracking
- Receipt organization
- Invoicing and payment processing
- Tax deduction identification
- Mileage tracking
- Cash flow management
- 1099 contractor management
- Bill pay
- Time tracking
- Project profitability tracking
- Advanced analytics
- Employee expense management
- Customized access by roles
- App integrations
- Automated processes
You can combine solutions to create your own package.
Pros of QuickBooks Online
The pros of using QuickBooks include:
- Comprehensive documents and reports
- Affordable monthly pricing plans
- Easy-to-use platform
- Live bookkeeping
- Simple collaboration with team members
- Taxes are much simpler
- Several integrations with other apps to make business operations easier
- Free mobile app
- Valuable insights into business health
Using QuickBooks is a good decision for companies with a tight budget or those without complex projects to track.
Cons of QuickBooks Online
There are also a few cons with QuickBooks:
- There are no industry-specific features (for example, non-profits)
- Limit of 25 users per account
- There is a learning curve and many tools to understand
- Payroll and project management tools are an additional cost
- It isn't a good option for large companies
- Connecting with a live customer support agent can be difficult
The cons depend on what your company needs. It's important to assess your specific business needs before choosing accounting software.
Founded nearly 30 years ago, the owner created Tally to streamline accounting functions for businesses. The goal was simplicity and ease of use. Pricing for Tally ranges from $306 to $1,530 per year. Currently, Tally is most prominent with businesses in India.
Features of Tally
Tally has many similar features to Quickbooks. They offer a silver and gold package, but how many users you can have is the only difference. With silver, you can have a single user, but gold allows unlimited.
Key product features include:
- Accounts receivable and payable
- Multiple currencies and languages
- Inventory management and barcode integration
- Supplies and purchase order management
- Multiple company support
- Bill of material
- Manufacturing journal
- Stock valuation
- Business reports & projections
- Banking integrations
- Payroll Processing
- Employee grouping
- Attendance tracking
- Bill settlement
- Credit and cash flow management
- Interest calculation
- Cost control and cost analysis
- Audit tracking
- Enhanced security management
With Tally, there are three products to choose from. Those are:
- TallyPrime Server
- TallyPrime Developer
Pros of Tally
Tally has quite a few bullets for the pro column. Those include:
- Industry-specific features
- Automatic payroll
- Purchasing an annual license could mean major cost savings
- Unlimited users on the gold package
- Download the software for free to try it out
You can also try educational mode to see what the software does and how it looks. This will help you better understand what is right for you.
Cons of Tally
There are a few cons with Tally, as well. If you choose Tally, you must consider the following:
- The interface is dated and isn't as easy to use as QuickBooks.
- You can only get updates and remote access with a yearly subscription.
- Purchasing the license won't see cost savings for quite a while.
- It's a PC application. While there are some workarounds, you can't easily access it from other types of devices.
- You can't pick and choose features, so you may be paying for things you don't need.
If your business has a lot of projects or inventory to manage, Tally would be a good option. You won't have to pay extra to get the features you need, like QuickBooks.
Difference Between Tally and QuickBooks
As you can see, there are considerable differences between Tally and QuickBooks. While these differences aren't a big deal to many companies, they could be the difference between a smoother accounting experience for your company.
- Size of Businesses Served — This is a key difference between Quickbooks and Tally. QuickBooks targets small businesses, startups, and independent contractors. On the other hand, Tally is more suitable for enterprise clients.
- Users Allowed — QuickBooks allows you to have 25 users per organization. Tally doesn't limit the number of users you can have.
- Platforms Available — QuickBooks and Tally both have web platforms available for customers. However, QuickBooks has a mobile app, and Tally does not.
- Purchasing Options — You can purchase a Tally license outright and not have any additional fees. With QuickBooks, the only option is a monthly or yearly subscription.
- Features — QuickBooks is better for businesses that need bookkeeping services as that is the main focus. Tally takes it further and focuses on project management and advanced inventory control.
- Integrations — QuickBooks integrates with many different applications, including several e-commerce platforms. Tally does not have this option. If you want integrations with Tally, you have to work with a developer to have them custom-made.
- Usability — QuickBooks is very user-friendly, intuitive, and good for users without accounting expertise. It is easily accessible from any device and updates data in real-time so users across the company can work with current information.
Tally isn't as easy to use. This platform is much more complex and intended for expert professionals. It is a powerful software with many features, but they are hard to navigate if you don't have training or an accounting background.
That said, Tally is better suited for organizations with a dedicated accounting team. Non-accounting professionals will struggle with the software.
How To Choose Accounting Software
Now that you understand the differences between the two, how do you pick one? Before you choose, ask yourself the following:
- How many users will my company need?
- What features does my company need the most?
- What is the budget?
- Does my company need on-the-go access?
If you are a small business, contractor, or freelancer, you probably would be better off with QuickBooks. It has a cleaner user interface and is much more affordable. The accounting needs for small businesses, freelancers, and contractors are not as complex as what Tally offers.
If you have an enterprise or work in specific industries (construction or manufacturing), then Tally is probably the better option. With the extensive inventory, payroll, and advanced accounting features, this solution will meet the unique needs of those industries.
Are you still unsure? You can check out free versions of both software! QuickBooks offers a free trial, and Tally allows you to download an educational version.
See Also: QuickBooks Vs. Accountants: Do You Need Both?
Strengthen Your Finances With Zeni Bookkeeping Services
This article gave you an overview of QuickBooks vs Tally accounting software. We hope you better understand how each software can help your business with accounting functions.
Accounting software is essential for any business, but so it the support of a finance firm.
Why? We find that many startups aren’t taking full advantage of their account software or able to monitor every line item, either out of lack of time or accounting expertise. This is when working with a finance firm like Zeni that has years of QuickBooks expertise can make all the difference.
Here at Zeni, since we work mainly with startups and first-time entrepreneurs, *QuickBooks integrates directly into our dashboard.
From there, we combine artificial intelligence with human experts to manage your QuickBooks account along with all of your finances. This allows you to see daily bookkeeping updates on a centralized platform for a flat monthly fee based on your business’s expenses. You never have to worry about if your finances are up-to-date again.
With Zeni, we can help you with expert bookkeeping services that integrate with existing software. Start with a demo to see how it works.
*Zeni is an Elite Partner with QuickBooks. Zeni customers receive 50% off their QuickBooks Online subscription.