To keep Tally or ERP or both?

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Tally is one of the most popular accounting softwares in India. Small and medium enterprises (SME)s just can’t think accounting without Tally.

Whenever organisations are deciding to buy ERP, common doubt is whether to keep Tally after ERP Or keep both ERP and Tally?

Straight answer to this question is ‘keep either ERP or Tally but not both. Avoid running two systems’.

However this answer is not sufficient to address anxiety of Tally users.

So let’s analyse as to why this answer is no and what are the alternatives if anyone still insists on Tally along with ERP?

Try to understand the main real purpose of any ERP. ERP is a decision making system based on a single database. For business owners, the most important decisions often are related to finance.

E.g. most important information is cash inflow and outflow. Inflow is triggered mainly through Sales and outflow through purchasing of material or services.

In Tally the data feeding for Voluminous transactions for Sales and Purchase, such as invoices/cheques, Vendor bills etc, are entered manually and hence its time consuming. It affects decision making.

Whereas ERP has the capability to automate this complex process from its original source of transaction and thus MIS gets generated instantly. This can help management to take important business decisions quickly.

So the best option is to have ERP with built-in Accouting system.

So what if, someone still requires Tally with ERP. There are few ERP systems, which are tightly integrated with Tally. But in such ERP systems one should ensure no direct access to Tally. Data should flow to Tally only through ERP and use Tally for MIS purpose.

Don’t buy ERP randomly and never try to build ERP.

Why so and what are the guidelines to buy ERP? Read my next blog to get these answers.


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