We all know how the world is rapidly becoming so technology-oriented, that every day more and more processes are occurring via software. Earlier, computers were just used for data management, but now, this has expanded to a lot of areas, which now handles research, calculation, etc.
Accounting is also one of the fields that have been automated using modern technology, and every day more and more people are switching over to this option.
All these functionalities can be put under the umbrella of ERP. ERP stands for Enterprise Resource Planning, and as the name suggests, is the automated management of the business procedure, which occurs in real-time.
Tally and SAP are two of the most famous and well-preferred software that is used in this field of requirement.
Key Takeaways
- Tally is an accounting software program primarily used by small and medium-sized businesses, while SAP is an enterprise resource planning (ERP) software system used by larger organizations.
- Tally is simpler to use and requires less training, while SAP is more complex and requires more resources for implementation and maintenance.
- Tally focuses on accounting and financial management, while SAP offers a range of modules for different areas of business, including logistics, sales, and production.
Tally vs SAP
The difference between Tally and SAP is that Tally is suitable for startups and small companies where specialization of operations is not an immediate requirement, while SAP provides solutions that cater to more advanced, medium-sized, or large companies, that have a huge amount of data to process, and a large number of operations to be done.
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Tally is an Enterprise Resource Planning solutions company that is based in Bangalore and has more than 2 million users worldwide. It was founded in the year 2009.
SAP is a company that provides Software Resource Planning solutions and is based in Germany. It was founded in the year 1972.
Comparison Table
| Parameters of Comparison | Tally | SAP |
|---|---|---|
| Location | Tally started in Bangalore, India. | SAP started in Weinheim, Germany. |
| Suitable Industry | Suitable for startups and very small companies. | Suitable for medium-sized, and large companies. |
| Parallel Accounting | Does not support parallel accounting. | Supports parallel accounting. |
| Price | Tally software is relatively cheaper than SAP software. | SAP software is more expensive than Tally ones. |
| Data Handling | Tally can only handle a small amount of data. | SAP can handle large data amounts without any difficulty. |
What is Tally?
Tally is an Enterprise Resource Planner software that is based in Bangalore, India. The main product of Tally is Tally.ERP 9. This product is a very useful development and management tool that is utilized by startups and small businesses to handle their accounting, business management, and resource allocation needs.
Tally was founded by Shyam Sunder Goenka and his son Bharat Goenka. It was founded in 2009, and in a very short time, it had gained huge popularity, especially among the budding business sectors.
Tally does not contain very specialized operations, and rather handles things at a more gross level. However, despite that, it provides a number of operations such as accounting, tax management, management of inventory, etc.
The main reason why Tally does not provide superspecialized operations is that it aims to capture the startup industry, and the company knows that startups do not have too much money to invest, and at the same time, they do not need a lot of features which a few companies like SAP have to offer.
That is why Tally provides a cheap and inexpensive way for these companies to operate and at the same time, this provides the company with healthy revenues too.
Tally has two different editions. One edition is the Gold edition, while the other edition is the Silver edition.
Basically, the main difference between these two editions is that the Silver edition is valid for a single user only, while the Gold edition can be used by an unlimited number of users who are using the same LAN.
What is SAP?
SAP is a German company, that was founded in Weinheim, in the year 1972. Similar to Tally, it too provides Enterprise Resource Planner software (ERP software). The main aim of SAP is to provide means which facilitate business operations and relations.
SAP is also the world’s largest non-American company in terms of the revenue generated by it. SAP provides various different services, however, its main domain is its ERP software.
The main difference between Tally and SAP lies in the type of company that uses these services. Companies that usually have low budgets, and have a small infrastructure, prefer using Tally because of its lower price and reduced functionalities.
However, companies that are large in size, involve a large number of processes daily, have a huge infrastructure, and also have a bigger budget, use SAP, because of the more detailed services it provides, and hence facilitating their each and every move.
Recently SAP has been seen to be interested in the cloud computing area. This assumption comes from the fact that SAP has been seen acquiring various cloud-based companies and services such as Concur Technologies.
It also went into partnership with IBM to sell cloud-based services in 2014. It might be understood that this move was made to challenge SAP’s biggest competitor in this industry, Oracle.
Main Differences Between Tally and SAP
- The main difference between Tally and SAP is that Tally is more suitable for startups and small companies, while SAP is more suitable for medium-sized and large companies.
- Tally is based in Bangalore, India, while SAP is a German company.
- Tally does not support parallel accounting, while SAP does.
- Tally services are relatively cheaper than SAP.
- Tally can handle only small amounts of data, while SAP can handle huge data processes.
- https://pdfs.semanticscholar.org/75d0/ec18f4f1471de362c96aaea80a84b3c3ac0a.pdf
- https://www.emerald.com/insight/content/doi/10.1108/14637150510619858/full/html
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Sandeep Bhandari holds a Bachelor of Engineering in Computers from Thapar University (2006). He has 20 years of experience in the technology field. He has a keen interest in various technical fields, including database systems, computer networks, and programming. You can read more about him on his bio page.
