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Should you choose QuickBooks or Tally for yourself?

Should you choose QuickBooks or Tally for yourself

QuickBooks or Tally:

An important question for a business owner is which accounting software they should use. They have to be well acquainted with the features and functions of the software themselves. In addition, they might also need to train their employees on the specific software that they decide to use. Also, their decision depends on the specific software that their accountant uses; in order to ensure convenience in the importing of data.

In order to understand the basic differences between the two, and make the choice between QuickBooks or Tally, you can read this blog. Ultimately, the decision of which software to use comes down to factors such as the numbers, features required specifically by the company, budget and so on.

What is QuickBooks?

Created by the Intuit group, QuickBooks is considered to be one of the most popular software’s in the accounting field. There are various pricing plans available, which give the users a good choice. In addition, there are also various versions available, ranging from QuickBooks Enterprise to QuickBooks Pro.

Who uses QuickBooks?

QuickBooks is generally well-liked by small business owners as well as small scale book keepers or accountants. It is ideally suited for those who are not so technically proficient. In other words, it may be used by contractors or small to medium sized enterprises.

Advantages of using QuickBooks

  • The reports that QuickBooks provide are a good metric of the financial health, or performance, of a company. It keeps a track of all the expenses as well as incomes, generating insightful reports in the process.
  • The platform is comparatively easier to use as compared to Tally. In case the user is not a professionally qualified accountant, they are more suited to QuickBooks.
  • The most significant advantage is perhaps that QuickBooks makes it much easier to handle taxes.
  • QuickBooks has an advanced functionality which permits integration with several third party applications. Thus, the functionality of the software is extended.

Disadvantages of using QuickBooks

  • In case the company is of a significantly large size, QuickBooks will not be able to manage all the financial accounting that is involved.
  • There are often complaints that multiple users using the same subscription can cause issues within the software.
  • Additional costs may have to be incurred on payroll as well as project management tools.

What is Tally?

The Tally software was created with the objective of making accounting functions for businesses simpler. One of the main differences with QuickBooks is that it allows unlimited number of users, in case they decide to avail the gold subscription. Some of the key features which are available with Tally include stock valuation, employee groupings, manufacturing journal, and interest calculation and so on.

The three products on offer from Tally include Tally Prime, Tally Prime Server, and Tally Prime Developer.

Advantages of using Tally

  • Tally offers all the relevant features which are required from an industry point of view.
  • As mentioned above, there is no restriction on the number of users who can use the subscription in case the gold package has been taken.
  • Tally is not subscription based i.e. a one-time payment needs to be made. Thus, it could be more cost efficient as compared to other expensive accounting software‘s.

Disadvantages of using Tally

  • Clearly, more training is required to be able to use Tally, as compared to QuickBooks.
  • It is mainly designed to serve on a desktop based platform. It is not as easily accessible on other platforms.
Comparative Framework

We provide you with some of the factors that should determine your decision between QuickBooks or Tally.

  1. Functionality

Tally: Tally is renowned for its robust accounting capabilities, particularly for businesses dealing with complex inventory and manufacturing processes. It excels in managing multiple companies, branches, and warehouses, making it an excellent choice for businesses with a broad operational scope. Tally also offers features like GST compliance for businesses in areas where it is so required.

QuickBooks: QuickBooks, on the other hand, is celebrated for its user-friendly interface and comprehensive set of features tailored to various business sizes. It provides an intuitive way to manage invoices, expenses, payroll, and financial reports. QuickBooks also offers industry-specific versions like QuickBooks Online and QuickBooks Desktop. This variation in choice helps the user in case they have to choose between portability, or more advanced functionality.

2. Ease of Use

Tally: Tally’s interface might feel a bit more technical, especially for those who are not well-versed in accounting. While it offers powerful features, navigating through the software can take some time to get used to. However, once the user becomes accustomed to the interface, Tally can efficiently handle complex accounting tasks.

QuickBooks: QuickBooks is widely recognized for its user-friendly interface, making it accessible even to those without an extensive accounting background. Its intuitive dashboard and straightforward navigation make tasks like invoicing, expense tracking, and generating reports relatively simple.

3. Scalability

Tally: Tally is often preferred by businesses with complex accounting needs. These would include businesses such as large-scale manufacturing or distribution enterprises. Its ability to handle intricate inventory management and multi-company scenarios makes it a scalable solution for businesses that anticipate growth and expansion.

QuickBooks: QuickBooks offers a range of versions suitable for businesses of different sizes. QuickBooks Online is ideal for small to medium-sized businesses, while QuickBooks Desktop can accommodate larger enterprises with more intricate accounting requirements. QuickBooks also supports seamless data migration between its various versions, ensuring scalability as your business grows.

4. Cloud Accessibility

Tally: Historically, Tally was primarily a desktop-based software, which limited its accessibility. However, recent versions of Tally have introduced cloud-based features, allowing users to access their accounts and data remotely. While this is a positive step, Tally’s cloud capabilities are still evolving compared to some of its competitors.

QuickBooks: QuickBooks has been a pioneer in cloud accounting, offering QuickBooks Online as a web-based solution that enables users to access their accounts from anywhere with an internet connection. This is particularly advantageous for businesses with remote teams or those that require real-time collaboration.

5. Cost

Tally: Tally’s pricing structure varies based on the specific version and features required by the business. It typically involves a one-time purchase fee, which can be cost-effective in the long run, especially for businesses that plan to use the software for an extended period.

QuickBooks: QuickBooks offers a subscription-based model, where users pay a monthly or annual fee for access to the software. While this might seem like an ongoing expense, it often includes updates, customer support, and cloud storage, which can be advantageous for businesses that prefer predictable, budget-friendly payments.

Conclusion:

In case you have a team which is specifically dedicated to managing the accounting, you can decide to rely upon Tally. In case you require services that cater exclusively to the demands of a specific industry, Tally is the best choice.

On the other hand, if your priority is that you can access your financial software from anywhere on the go, QuickBooks is a much better choice. From the usability perspective, there is no doubt that QuickBooks is easier to understand, and is more accessible in terms of features. The final decision between QuickBooks or Tally needs to be taken based on the suitability with the business.

Wikipedia.

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