Odoo VS. ERPNext: Which One is the Right ERP?
January 22, 2024

Tally VS SAP: Which One is the Better ERP?

Tally VS SAP Comparison

Two business solutions which are similar yet so different. While SAP is the clear choice for a company looking for end-to-end ERP software for business, Tally is known for its simplicity as Accounting and compliance solutions. But which one is right for your business?

PurposeRecommended Product
1. Small Business (turnover less than 10 Cr)Tally ERP or Tally Prime
2. Large Business (turnover more than 200 Cr)SAP
3. AffordabilityTally
4. Finance and ComplianceTally
5. End to End Enterprise ManagementSAP

However, the selection becomes extremely tough for Medium Sized Business with Turnover between 10cr and 200Cr. We will compare Tally and SAP head-to-head in every aspect. At the end we have a clear winner.

First things First

We have relied on the information provided by the respective software on their official website for features, USPs and capabilities. Also, we have collected information and reviews from third party websites like G2, TrustPilot, Capterra, Software Advice, etc.

Overview: Tally and SAP

First we would tell you exactly what these both software is. You can skip it if you directly want to jump to comparison.


Tally is a widely used business management, accounting and GST compliance software in India. Initially introduced in 1986, Tally is known for its versatility in handling various aspects of business operations, including financial accounting, inventory management, payroll, statutory compliance, and more. It offers features like automatic tax calculation, real-time reporting, bank reconciliation, and easy voucher entry.

Tally is recognized for its user-friendly interface, making it a popular choice among businesses in different industries. The software can be customized to suit specific business requirements and is applicable across sectors such as manufacturing, retail, and trading.

Popular Versions

  • Tally Prime (latest)
  • Tally ERP 9

Major Market: India, Middle east, 100+ Countries

Target Segment: Small and Medium Sized Businesses

USP: Simplicity

Deployment: On Premise


SAP, short for “Systemanalyse Programmentwicklung”, is a global leader in business process management software. Founded in 1972 in Germany, SAP has grown into a multinational enterprise The company’s flagship product, SAP S/4HANA, sets the standard for enterprise resource planning (ERP) software, leveraging in-memory computing for data processing and supporting advanced technologies like artificial intelligence and machine learning.

SAP’s integrated applications connect various business functions into an intelligent suite on a digital platform, replacing legacy, process-driven systems. With more than 230 million cloud users and a portfolio of over 100 solutions covering all business functions, SAP caters to businesses of all sizes and industries globally.

Deployment Options: On-premises or Cloud

Target Market: Organizations of all sizes, across diverse industries

USP: Comprehensive solutions for end-to-end business management, integration with emerging technologies, and a vast global presence.

SAP Vs Tally: Head-to-Head Comparison

Here is a summary table on which is better in SAP and Tally.

Features, FunctionalitiesSAPTally doesn’t have Inbuilt CRM, HRMS, Product Planning, SCM, etc.
ScalabilitySAPSap could handle business of any size
IntegrationSAPSAP Has more integration capabilities
ImplementationTallyTally can be implemented in a day
CustomizationSAPSAP offers High level customization
Ease of UseTallyTally is simple and intuitive
ResourcesTieBoth have huge learning resources and materials
Finding EmployeesTallyTally has a larger talent pool in India
CostTallyTally starts at Rs 600/user/month
Reviews and RatingTieBoth are highly rate 4.3 and above
User BaseTieBoth have large user bases in their segment

Tally VS SAP Detailed Comparison

Here is the detailed comparison of Tally and SAP on each parameter.

Functionalities, Modules and Scope

Here are some of the major functionalities and modules ERPs needs to have.

Financial AccountingComprehensive accounting and finance managementRobust Financial Management Module
GST CompliancePre-Configured GST Billing, Return FilingCustom Configuration for GST Compliance
Inventory ManagementInventory Control ledgers and item wise stockingAdvanced inventory control and tracking
Payroll ManagementBasic payroll features (salary payable)Advanced payroll processing
Statutory ComplianceIncome Tax complianceIn-depth compliance capabilities
Sales and PurchaseEasy to use sales and purchase functionsAdvanced sales and purchase modules
Human Resources (HR)No HRMSYes
Customer Relationship Management (CRM)NoYes
Supply Chain Management (SCM)NoYes
Production PlanningNoYes

Winner: SAP


Again, we will be comparing Tally Prime vs. SAP Business One, as the flagship SAP 4/HANA is extremely expensive and doesn’t cater to the same segment.

Tally Prime: Tally offers a Silver Rental Plan for its Single User Edition designed for standalone PCs. The cost is budget-friendly, starting at Rs 600/user per month. For those preferring a perpetual license, the expense goes up to a maximum of Rs 54,000.

SAP Business One: SAP provides a customized pricing model, with estimated costs varying. Starting from as low as Rs 8,000/user per month, the expenses could potentially reach up to Rs 40,000/user per month, and there’s no defined upper cap. Besides, there is additional cost of implementation that could cost upto 3 lakh.

Winner: Tally

Note: There is no information about the pricing of SAP on the official website. The following estimates were based on information provided by the following 3rd party websites.

MegaTechVerse, Stellar One Consulting, Clients First

Reviews and Rating

Here we will be comparing reviews of Sap Business One against Tally Prime as this product of SAP goes head-to-head with Tally in small and medium sized enterprises.

SAP S/4HANA Cloud which is the flagship product of SAP doesn’t go head-to-head with Tally Prime.

PlatformRating (SAP)Number of Reviews (SAP)Link (SAP)Rating (Tally)Number of Reviews (Tally)Link (Tally)
Capterra4.3/5295SAP Business One Reviews From Verified Users – Capterra India4.3/5204TallyPrime Reviews 2023 | Capterra
G24.3/5506SAP Business One Reviews 2023: Details, Pricing, & Features | G24.4/5227TallyPrime Reviews 2023: Details, Pricing, & Features | G2
Software Advice4.3/5295SAP Business One Software Reviews, Pros and Cons4.3/5204TallyPrime Software Reviews, Pros and Cons
GetApp4.3/5295SAP Business One Reviews – Pros & Cons, Ratings & more | GetApp4.3/5204TallyPrime Reviews on GetApp
Software SuggestNANASAP Business One Pricing, Features, and Reviews in 20234.7/5330TallyPrime Pricing, Features, and Reviews (Dec 2023)

Winner: Tie


  • 1. Capterra, Software Advice and GetApp have similar ratings and reviews because they belong to a single parent company and all reviews are shared across all the three platforms.
  • 2. The above table is based on the data collected as on 12th December 2023.

Winner: Tie


Tally: Tally offers basic customization features like templates, currency settings, taxes, rules, display, etc.

SAP: SAP stands out in customization, allowing customization at a granular level, covering every aspect, rule, and logic. While powerful, this level of customization comes with a higher associated cost.

Winner: SAP

Integration Capabilities

Tally: Tally provides basic integration capabilities, but its functionality is limited. It operates more as a standalone system.

SAP: SAP excels in integration capabilities, offering comprehensive integration with various third-party systems, tools, and software. It has well-documented APIs, allowing seamless connectivity and data exchange across all systems.

Winner: SAP


Tally: Tally can be set up and running within a day allowing rapid deployment without extensive technical complexities.

SAP: SAP implementation is highly complex and technical. The process is intricate, involving significant time and resources.

Winner: Tally


Tally: Tally faces limitations in handling the complex needs of larger enterprises due to its design and features.

SAP: SAP has a flexible architecture to make it suitable for seamless growth, adapting to the increasing complexities of business processes.

Winner: SAP

Ease of Use

Tally: Tally designed for simplicity. It can be used with very little knowledge of accounting and doesn’t require extensive training.

SAP: SAP demands extensive training and skilled personnel to navigate effectively. The learning curve is steep, and using SAP proficiently usually requires years of experience.

Winner: Tally

Resources and Tutorials

Both Tally and SAP boast a wealth of resources, including self-developed and third-party tutorials, documentation, and support materials.

Winner: Tie

Finding Employees/Talent

Tally: Tally enjoys widespread popularity in India and is even embedded in Chartered Accountancy (CA) training. Additionally, numerous training institutes offer Tally courses, making it easier to find employees in India.

SAP: Given its predominant usage of SAP in large enterprises, the pool of trained professionals is smaller. SAP requires hands-on training, and professionals often command higher salaries.

Winner: Tally

User Base

  • Tally: Enjoys a substantial user base of 2.3 million licensed customers, primarily in India, focusing on SMEs.
  • SAP: Commands a user base of 20,000 worldwide, prominently catering to very large enterprises.

Winner: Tie

Which One is Better? Tally OR SAP

Honestly – SAP is better but extremely expensive. Tally is not an ERP, it’s accounting software with GST compliance and inventory management capabilities.

SAP is not a wise choice if you don’t have extra cash to burn. The cost is humongous, and any Indian medium sized Company would find it difficult to implement SAP.

The Best Alternative: HB Cloud 360

While you are looking for the better ERP, HB Cloud 360 is an ERP that is specially designed to bridge the gap and serve medium sized enterprises.

  • Industry Specific Modules
  • All Level Customization
  • 25+ Modules including SCM, HRMS and
  • Cloud Deployment

HB Cloud 360 ERP has covered all the shortcomings of Tally while still being affordable to medium sized businesses.

HB Cloud 360 ERP [Get Free Consultation]

References: Tally, SAP, G2

FAQs About Tally and SAP

Tally or SAP – Which is Best?

Tally is popular for small to medium-sized enterprises, while SAP is preferred by larger organizations for its comprehensive features. For medium-sized enterprises you can go with HostBooks Cloud 360.

Is Tally Still in Demand?

Yes, Tally remains in demand, particularly in countries like India, where it is widely used for accounting, GST compliance, and business management. It is a preferred choice for many SMEs due to its user-friendly interface and cost-effectiveness.

Full Form of SAP in Tally?

SAP in Tally does not have a specific full form. SAP is a standalone enterprise resource planning (ERP) software. Tally and SAP are distinct software solutions with different functionalities.

Do Companies Still Use Tally?

Yes, many companies, especially in India and other countries, continue to use Tally for their accounting, financial, and business management needs. It is a prevalent choice among SMEs due to its simplicity and affordability.

Is Tally Used in the USA?

While Tally is not as widespread in the USA as in some other regions, it can still be used for accounting purposes. However, many American companies prefer ERP solutions like SAP, HostBooks or QuickBooks for their business needs.

Is Tally Used in Dubai?

Yes, Tally is used in Dubai and other parts of the UAE. It is popular accounting and business management software, especially among small and medium-sized businesses.

Rajan Rauniyar
Rajan Rauniyar
Rajan Rauniyar is the Head of Content and SME for Marketing at HostBooks. Currently pursuing Chartered Accountancy, Rajan brings 7+ years of experience with 3+ years of hands-on experience in financial accounting, auditing, and taxation along and 4+ years of experience in content writing. Rajan's content is characterized by in-depth knowledge of finance and accounting, making it particularly valuable for accountants, business owners, lawyers, CAs, CXOs, and other decision-makers. His expertise in the B2B and SaaS industries ensures that every topic is addressed with a comprehensive understanding and is complemented with a practical solution. Drawing on his firsthand experience in financial auditing and combining it with his expertise in content writing, Rajan crafts compelling content that is not only informative and accurate but engaging to read as well. Education: CA Final – ICAI [Pursuing] CA Inter - ICAI [2016] Experience: Default – Senior Content Writer |US Based product Engineering Startup Techjockey - Content Writer | India’s First SaaS Integrator Fishtail Infosolutions - Content Writer | Digital Marketing Agency AVKG & Associates – Article Assistant | CA Firm USP & Company– Article Assistant | CA Firm

Comments are closed.


Try HostBooks
SuperApp Today

Create a free account to get access and start
creating something amazing right now!

gsp-stamp gsp-stamp safe-to-host