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Are small and medium businesses spending the same amount of money, time, and effort implementing Tally rather than an ERPNext system?



Small and medium businesses often opt for Tally due to its affordability, user-friendliness, and ready-to-use nature. However, if their specific business needs aren't met by Tally's standard features, customization becomes necessary. This typically involves hiring third-party developers, which can be costly and time-consuming, sometimes even exceeding the initial software cost. Even a simple task like adding a custom field in Tally requires developer intervention. In contrast, ERPNext often allows for such customizations through configuration, eliminating the need for simple development efforts.


Here’s a breakdown of the hidden costs associated with Tally Customization

  • Development Costs: Hiring third party developers for custom reports, workflows, and integrations is expensive.

  • Recurring Costs for Customization Updates: When Tally releases a new version, businesses that have customised the software must update their custom code to ensure compatibility with the new release. This typically involves additional costs charged by third-party developers.

  • Time Costs: Customization projects can take weeks or even months to complete, disrupting business operations and productivity.

  • Risk of Errors: Customization can introduce bugs and errors, leading to inaccuracies in financial data further leading to operational inefficiencies.


A smarter choice is opting for ERPNext over Tally in today’s time. ERPNext is a cloud based open-source ERP solution in itself. It has extensive customised options making it compelling for businesses who are seeking a flexible and scalable ERP system.  


Here’s how ERPNext can be cost effective in comparison with the cost of Tally as a Product with customization.


  • Zero Licencing Cost: ERPNext is a free to use ERP software which comes with zero licensing cost.

  • Customization: ERPNext offers more flexible configuration options compared to Tally, reducing the need for costly customizations. Many configurations can be performed directly by users on the front end, without requiring any coding knowledge. ERPNext's user-friendly interface and strong developer community makes it easier to customise the software to meet specific needs, even with limited coding experience.

  • Scalability: As your business grows, ERPNext can easily scale to accommodate your expanding operations.

  • Comprehensive Functionality: ERPNext offers a wide range of modules, including Accounting, Buying, Selling, Inventory, HRMS, Payroll, Manufacturing, Quality and more, eliminating the need for multiple software solutions.

  • ERPNext's Superior API Integration: A Quantum Leap Beyond Tally: Tally falls short in terms of API integration capabilities compared to ERPNext. ERPNext offers a robust and flexible API framework that allows seamless integration with a wide range of third-party applications, including e-commerce platforms, payment gateways, CRM tools, and more. This enables businesses to automate data flows, reduce manual intervention, and streamline operations to a far greater extent than what Tally can provide. By leveraging ERPNext's advanced API integration, businesses can gain a competitive edge and unlock new opportunities for growth and efficiency.

  • Multiple Ready-Made Domain Solutions: ERPNext offers a variety of built-in industry-specific solutions, including Agriculture, Hospitality, Healthcare, Education, and more. If you're seeking a solution tailored to a particular industry, you can often find a ready-made option without the need for extensive customization.

  • Strong Community Support: The active ERPNext community provides valuable resources, support, and guidance.

By choosing ERPNext, small businesses can avoid the high costs and risks associated with Tally customization and streamline their operations for greater efficiency and profitability.

Consider the long-term benefits of a flexible, scalable, and cost-effective solution like ERPNext. It's time to break free from the limitations of Tally and embrace a future-proof ERP solution. Written by - Hemant Asaldekar

Designation - Consultant


Would you like to learn more about how ERPNext can benefit your small business? 

Contact us today for a free consultation.

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