Tally is one of the most widely used accounting software in India, known for its simplicity and effectiveness. It offers different types of licenses to cater to various business needs. Understanding these licenses can help you choose the one that best fits your business requirements. Here are the three primary types of Tally licenses:
- Perpetual License A Perpetual License allows you to use Tally indefinitely after a one-time payment. This license is ideal for businesses that prefer to make a single investment without worrying about recurring monthly or annual costs. However, there are some aspects to consider:
- Tally TSS (Tally Software Services) Renewal: To access new versions of Tally, along with features like E-invoice, E-way bill, and other services, you need to renew your Tally TSS annually. The renewal cost is not included in the initial purchase price.
- Initial Investment: The Perpetual License requires a higher upfront cost compared to rental or subscription options.
Benefits:
- Long-term Cost Savings: No recurring monthly or annual payments for the license itself.
- Ownership: Permanent ownership of the software.
Considerations:
- Additional Costs: Annual TSS renewal for updates and additional services.
- Initial Outlay: Higher upfront payment compared to other licensing options.
2. Rental License
The Rental License allows businesses to use Tally on a month-to-month basis. This option is particularly suitable for businesses that prefer a lower upfront cost and flexibility.
- Monthly Cost: The Rental License costs ₹885 per month for the Silver edition.
- Flexibility: This license offers the flexibility to discontinue the service at any time without a long-term commitment.
Benefits:
- Lower Initial Cost: Affordable monthly payments.
- No Long-term Commitment: Ideal for short-term projects or businesses with fluctuating needs.
Considerations:
- Recurring Cost: Monthly payments can add up over time.
- No Ownership: You do not own the software; it’s a rental arrangement.
3. Subscription License
The Subscription License is a relatively new model where businesses can subscribe to Tally on a monthly or annual basis at a lower cost compared to the Rental License. This license provides the same benefits as the Rental License but at a more economical rate.
- Monthly Cost: The Subscription License costs a maximum of ₹380 per month.
- Economical: Offers significant cost savings over the Rental License.
Benefits:
- Cost-effective: Lower monthly payments compared to the Rental License.
- Flexibility: Suitable for businesses that prefer not to invest heavily upfront.
Considerations:
- Recurring Cost: Like the Rental License, the Subscription License also involves ongoing payments.
- No Ownership: The license is based on a subscription, meaning you do not own the software
Choosing the Right License for Your Business
When selecting a Tally license, consider the following factors:
- Budget: Evaluate your financial capability for upfront investments versus recurring payments.
- Business Needs: Determine whether your business requires long-term ownership or prefers the flexibility of monthly payments.
- Service Requirements: Consider the importance of accessing the latest features and services, which may require Tally TSS renewal in the case of the Perpetual License.
Each type of Tally license offers distinct advantages, and the best choice depends on your specific business needs and financial situation. By carefully assessing these options, you can make an informed decision that supports your business operations effectively.
