Introduction:
Over the past 12 months, I’ve been utilizing Zoho Books and leveraging my four years of experience with Tally to implement Zoho Books for several clients. It has proven to be highly suitable for their diverse use cases. In particular, for a real estate company, I customized Zoho Books by making adjustments to the Chart of Accounts and introducing additional modules to effectively capture and segregate data for each project. With this hands-on experience, I am well-equipped to compare both Zoho Books and Tally in terms of features and pricing.
In the dynamic landscape of business, effective financial management is a cornerstone of success. Choosing the right accounting software is pivotal for entrepreneurs and business owners. Zoho Books and TallyERP 9 are prominent players in this arena. In this analysis, we will delve into their features, deployment options, user interfaces, and pricing structures to empower you in making an informed decision tailored to your specific business needs.
Deployment: Cloud vs. Desktop
The battlefield begins with deployment, where Zoho Books takes the cloud-centric approach, allowing users to access their financial data from any web browser. On the flip side, TallyERP 9 remains firmly rooted in the desktop world. Zoho’s cloud advantage offers unparalleled accessibility, enabling users to manage finances on the go. However, businesses with limited internet access or security concerns may find solace in Tally’s offline capabilities. The choice between cloud convenience and desktop reliability depends on your business’s specific needs and preferences.
User Interface: Simplicity vs. Power
Zoho Books prides itself on a clean and intuitive interface, making it an excellent choice for accounting newbies. Navigating through invoices and reports feels like a stroll through the park. TallyERP 9, while slightly more complex in its UI, packs a powerful punch with advanced features and keyboard shortcuts tailored for seasoned accountants. The decision here hinges on whether you prioritize ease-of-use or require the advanced capabilities that come with Tally’s interface.
Tally Prime
Zoho Books
Pricing: Pay as You Grow vs. Upfront Investment
Zoho Books follows a subscription model, allowing businesses to scale their pricing with growth. This pay-as-you-grow approach is budget-friendly for startups, making Zoho a compelling choice for those with limited initial capital. TallyERP 9, on the other hand, demands an upfront license fee, which may be a steeper initial investment. However, over time, the one-time purchase might prove cost-effective for established businesses with predictable growth trajectories. Consider your budget and business outlook when deciding between the two.
Zoho pricing
| Standard | Professional | Premium |
| Zoho Books Invite 3 users Zoho Books 1 GSTIN Zoho Books 5,000 Invoices Zoho Books 5,000 Bills/Expenses Includes – Zoho Books Email Support | Zoho Books Invite 5 users Zoho Books 2 GSTINs Zoho Books 10,000 invoices Zoho Books 10,000 Bills/Expenses Zoho Books Email and Voice Support | Invite 10 users Zoho Books 3 GSTINs Zoho Books 25,000 Invoices Zoho Books 25,000 Bills/Expenses Zoho Books Payroll (10 employees) Zoho Books Email, Chat, and Voice Support |
| 749 INR | 1499 INR | 2999 INR |
Tally Prime Pricing
| Feature | SILVER | GOLD | DIAMOND |
| User Access | Single User | Multi-user (LAN Network) | Multi-user (LAN & WAN Network) |
| Pricing (One-time Purchase) | ₹22,500 (New) | ₹67,500 (New) | ₹1,80,000 (New) |
| Pricing (Rental per month) | ₹750 (New) | ₹2,250 (New) | ₹15,000 (New) |
| Tally Software Services (TSS) | Optional (₹4,500) | Optional (₹13,500) | Included |
| GST Compliance | Yes | Yes | Yes |
| Inventory Management | Yes | Yes | Yes |
| Purchase Order Management | Yes | Yes | Yes |
| Sales Order Management | Yes | Yes | Yes |
| Accounts Receivable/Payable | Yes | Yes | Yes |
| Payroll Management | Yes (Limited) | Yes | Yes |
| Banking & Reconciliation | Yes | Yes | Yes |
| Tax Deducted at Source (TDS) | Yes | Yes | Yes |
| Tax Computation & Filing | Yes | Yes | Yes |
| Financial Reporting | Yes | Yes | Yes |
| Multi-currency Support | Yes | Yes | Yes |
| Data Security & Backup | Yes | Yes | Yes |
| Mobile App Access | Limited Features | Yes | Yes |
| Web Access | No | Yes | Yes |
| Advanced Features | Limited | Extensive | Most Extensive |
| Ideal for | Small Businesses | Medium Businesses | Large Businesses & Enterprises |
Let’s compare Tally and Zoho Books.
Features: Breadth vs. Depth
Zoho Books offers a buffet of features ranging from invoicing and inventory management to payroll and taxes. Its seamless integration with other Zoho apps creates a robust business ecosystem. TallyERP 9, while less diverse, delves deeper into core accounting functionalities. The voucher-based system in Tally provides nuanced control over transactions, making it ideal for businesses with complex financial operations. The choice between Zoho Books and Tally depends on whether you prefer breadth and integration or in-depth accounting control.
The maximum pricing offered by Zoho Books (ULTIMATE EDITION) is 8,000 per month.
8,000 * 12 = 96,000 INR per year.
For Tally Prime, the maximum pricing is 180,000 per year. Cost-wise, Tally Prime is relatively expensive, and the featured offering at this price includes LAN and WAN accessibility. Tally Prime can be accessed both locally and in the cloud. Zoho Books, on the other hand, is essentially a SAAS product, allowing access via the cloud from anywhere in the world.
The main drawback for Tally Prime is its limited integrations. I couldn’t find popular vendors to integrate with Tally Prime, whereas Zoho Books offers numerous integrations, including automated bank statement import/refreshing feeds and online easy payments to vendors via online banking. It also provides separate vendor and customer portals where vendors can access purchase orders and payment links, and customers can view sales orders, invoices, and payment receipts. Additionally, Zoho Books is capable of building custom documents with deluge as per the company’s requirements.
In terms of data analytics, Zoho Books is more easily connectable with multiple Business Intelligence apps. To illustrate, one of my clients has five organizations under his wing. He wanted to monitor Financial KPIs of individual organizations in a single dashboard. First, I connected all Zoho Books accounts with Zoho Analytics, connected multiple databases, and developed a dashboard. This was satisfactory for stakeholders, but the finance team needed more in-depth analysis and predictions. So, I built a small automation system using Zoho Books API. Zoho Books has excellent API documentation. I fetched data from their API and stored it in Google BigQuery cloud storage as datasets and tables. Then, I connected BigQuery with Microsoft Power BI. Now, the dashboard is truly impressive, providing the finance team with the insights they need without the need to upgrade the plan/subscription in Zoho Books.
When comparing pricing, functionality, features, and integration, Zoho Books consistently stands out from the rest.