Company Logo

Tally for Garment Manufacturing Company

By Drew, on Fri Aug 29 2025
Tally Solution

There are three basic needs of human beings: Food, shelter, and clothing. Clothing is one of the essential requirements for being part of this civilized society.

Boost Your Garment Manufacturing Business with Tally ERP

The garment manufacturing industry is the sector that fulfills this human need by providing clothing. The apparel industry is no less than a universe in itself. On the outside, it looks simple, yet glamorous with colorful fabrics used in apparel, packed boxes, and delivered shipments. But it’s not that straightforward. This is a maze from the inside.

The entire process is a chain of moving parts. It starts by sourcing fabrics from one vendor to another. And the next few steps are extremely crucial. They include cutting, stitching, finishing, and packaging: each step has its own rhythm. Then comes subcontracting, where part of the work goes out and returns for quality checks.

That’s over hundreds of stock-keeping units from just one product line. Now let’s add export rules, bulk orders, labor management, payroll, inventory, tax compliance, and global buyer expectations to this. This is the place where most businesses start losing grip.

For them, we are here today to offer the best solution: Tally Software. This is a well-known name in every kind of manufacturing industry. The company has been operating since 1986 while providing businesses with the automation solution they need, especially with the accounting software.

Try Tally ERP for Garment Industry

See how Tally simplifies accounting, inventory, and payroll for garment manufacturers.

The Complexity in the Apparel Industry

Complexity has become a daily part of this industry. Production delays, wastage, and low margins are now common here.

  • Blind Spots in the Inventory: Sometimes, a lack of raw materials stops production mid-way.
  • Delayed Deliveries: The inventory blind spots can lead to over-ordering, and this often causes missed shipments. It can immediately destroy weeks of planning within minutes.
  • Wastages and Cost Leakages: Untracked rejections and leftovers always quietly cut into margins.
  • Payroll Complications: The Manufacturing industry isn’t small. Lots of workers work here across shifts with different hours and a pay structure. If you miss a single detail here, you can end up overpaying or underpaying your employees.
  • Compliance: If you are operating in the UAE, then VAT compliance isn’t new to you. Here, you need to handle tax details separately, even at the last minute. 

In short, managing garments is like managing complexity besides manufacturing.

How Tally Software Fixes This

As mentioned earlier, Tally Accounting Software isn’t new to the business world. But the way it has evolved has made it a natural fit for the apparel industry. You can see this as a command center that brings the different arms of a business together. Because instead of using separate systems for finance, inventory, and payroll, Tally ERP Software folds everything into a single space. 

For a garment manufacturer, this means:

Instant visibility into the Inventory: A Tally user can always track fabrics, trims, semi-finished pieces, and finished stock. They can even get alerts before production stops due to lower stock.

Consult Our Experts

Our specialists will help you choose the right Tally solution tailored to your garment business.

Order-Level Clarity: Each SKU (Stock Keeping Unit) can be tracked separately. Suppose you need something in size XS or in XL. So you don’t need to find them annually anymore. Also, your commitments to buyers stay intact because there’s no confusion between variants. 

Better Costing: Tally makes the right cost per piece visible by capturing wastage, overheads, and rejections. Ultimately, it makes pricing sharper and margins more realistic.

Compliance: In the UAE, tax and compliance are non-negotiable. Tally accounting directly handles all of these inside the system while exporting invoices and documentation without manual duplication.

Scalable setups: A small boutique unit can initially start with Tally Single User. As the business grows, they can go for multi-user or cloud, to keep operations running across factories and offices without any disruption.

So instead of chasing after problems, garment companies finally get to stay ahead of them with Tally.

Tally Prime Features for the Apparel Industry

The garment manufacturing industry has very specific needs that aren’t manageable with some generic software. What makes Tally best for this industry isn’t just its core strength, but also how easily it can adapt to the needs. With Tally Customization, apparel firms shape the system around their workflows.

Bill of Materials (BOM): A garment isn’t one single component. It includes fabric, lining, buttons, labels, threads, and more. Tally seamlessly defines each product with a BOM or Bill of Materials and lets you specify all the raw materials with their quantities. 

Job Work Analysis: Subcontracting is extremely common in this industry. This feature basically allows users to analyze their expenses and incomes related to certain jobs based on their clients’ requirements. You or your team can track procurement of your raw materials from anywhere using Tally Cloud. Apart from that, you can see which material is going out and how stock balances without any confusion.

Variant Handling: In this industry, managing color and size is one of the hardest jobs without a proper system. Tally makes it simple by recording variants in one place, instead of duplicating items manually.

Batch & Lot Tracking: This one is completely essential in the textile and apparel industry because each lot of fabric and clothes comes with its own characteristics. Now Tally links lots to orders to ensure there’s no mix-up.

Payroll & Labor: Another hindrance in the garment sector is its large workforce. Here, salary calculation is an entirely separate project. But Tally Multi-User has made payouts clean and fast by automating payroll, overtime calculations, and deductions.

Multi-Currency & Multi-Location: People who are running the garment sectors in the UAE are well-known about this. Exporters deal in different currencies here every day. Tally makes that seamless while tracking inventory across warehouses and factories. It also enables the multi-currency feature, where you can create new currencies and exchange rates for them.

Overall, these features align directly with how garment companies operate every day.

Real Case Scenario

Imagine you are running a mid-sized garment exporter in the Middle East that is working with customers in the USA, India, and other countries. Now, you have to manage about 200 designs per season, that too, with 12 SKUs each.

These are your challenges:

  • Sudden shortage of raw material stops production too often.
  • Employees are tracking orders either manually or in separate systems, leaving room for errors. 
  • If these aren’t enough, there’s payroll for a large workforce, which usually takes weeks.

After moving to Tally Prime with customization:

  • You can see your BOM setups reduce raw material shortages by nearly 40%.
  • Also, employees can track each SKU separately, so commitments stayed solid.
  • Salaries are now processed in hours instead of weeks with automated payroll.
  • Most saliently, compliance has become simplified.

So, the Apparel manufacturing industry is fast, competitive, and unforgiving. Here, delays, cost overruns, or compliance gaps are deal breakers. But Tally Prime is here to handle everything. You just need to do one thing. Find a reliable Tally partner in the UAE.

Start Using Tally ERP Today

Automate your operations and grow your garment manufacturing business with Tally ERP.

Well, that’s the reason we are here. Penieltech has been working with Middle East businesses to automate them for years. Here, we’ve seen companies struggling with delays, wastage, and compliance. With our help and Tally’s efficiency, they have ultimately turned into streamlined operations with better margins and stronger client trust.

Get in touch with us