Tally Software for E-commerce Businesses

E-commerce has gradually turned into one of the fastest-growing business models worldwide. Every day, plenty of stores are going live and millions of transactions are being recorded.

If we come to reports, it’s saying the number of online transformations has increased by 40% and it all happened just within a decade. This year, almost 29.9% of businesses have gone online to date. The reason behind this is that most customers are choosing online shopping, and the number has reached 56%. If this continues, then almost 95% sales will be online by 2040. This is not the end. According to experts, global retail online sales may cross $4.3 trillion by the end of 2025.

So, in this competitive scenario, it’s no less than a celebration for E-Commerce businesses when an order lands. But the real challenge starts here, because getting traffic isn’t enough to run your business. It depends on how you manage your accounting after that. Remember, growth always brings opportunity, but it also makes accounting a lot more complicated, especially in the Middle East.

Here,Tally Accounting Software proves its worth by tying all valuable data in one seamless system instead of piecing them from different places.

The Journey: From Cart to Cashbook

Let's understand the entire journey of e-commerce stores, from receiving orders to handling accounting. Consider any typical online purchase. Initially, it’s very simple: clients are placing orders and making the payment. But in reality, it directly triggers lots of accounting activities.

Order Placement: It generally starts when customers add anything to the cart. The moment they place an order, the sales entry gets generated. Now comes the complication. There are multiple formats for payments, including UPI, cash on delivery, cards, net banking, or wallets. All of these need proper categorization.

• Tally Software can make the entire process smoother by separating each payment type, so reconciliation becomes easier.

Inventory Adjustments: Inventory is actually the lifeline of e-commerce. In these businesses, where products are often sold on multiple channels at once, stock levels have to be updated properly. Otherwise, it may lead to overselling and damage the reputation.

• Tally Prime handles instant stock updates. The moment a sale gets recorded, it adjusts the stock immediately.

Logistics & Shipping Costs: Orders never end with a product being sold. It always arrives with delivery charges, packaging, or courier costs. Lots of businesses stumble in this step.

• But, Tally Multi-User helps the logistics team and finance team to update data simultaneously without any dependency or waiting for extra time.

Payment Settlement: This is the trickiest part for most e-commerce businesses. Payment gateways don’t settle the full payments instantly. They always deduct commissions, transaction fees, and sometimes they hold back a small percentage for refunds.

• Tally Cloud records all the transactions and then provides users with a detailed report regarding them.

So you don’t need to waste hours doing these manually because that’s not sustainable at all. Tally automates the entire journey from order to accounting.

Types of Financial Statements in E-commerce Businesses

Do you know what gives you the most financial clarity in the e-commerce business? It’s the structured statements about numbers, and Tally ERP software keeps them ready at all times.

Income Statement: It’s also known as the statement of earnings. It shows overall revenue, COGS (Cost of Goods Sold), and profit. For e-commerce platforms, revenue can come from multiple places, like website sales, marketplace sales, wholesale orders, and more.

Tally software allows users to see their profit by letting them deduct losses and expenses from the revenue. tracking

Balance Sheet: You can call it the statement of financial position. It provides an instant view of the business's assets, liabilities, and equity. In e-commerce businesses, assets are inventory, receivables, or digital infrastructure, while liabilities cover vendor dues, loans, and taxes.

Tally ensures that you can see every single transaction detail regarding these, instantly from your balance sheet. 

Cash Flow Statement: Arguably, this is the most important financial statement for e-commerce. You can see the available cash for a period and check delayed settlements, refund cuts, and other commission cuts. With Tally accounting software in place, you’ll get a live view of inflows and outflows that’ll show your cash position at any time.

These statements together give ecommerce businesses a clear financial position without waiting till quarter-end.

Tally’s Benefits for E-commerce Businesses

Platforms, payments, and operations, everything matters in e-commerce businesses. Tally Customization simplifies all of these in one place.

• Tally efficiently syncs sales from different marketplaces like Shopify, Amazon, Noon, and others.

• It offers Tally Single User and Multi-User options as per your needs.

• The key benefit is that it seamlessly handles VAT filings and other tax rules across the Middle East.

• Tally software automates inventory updates across multiple channels.

• Now you don’t need to worry about security because it protects data with built-in security and cloud backups.

• Last but not least, you can access anything from anywhere with Tally Cloud.

Businesses that are using integrated ERP systems like Tally have seen at least 40% fewer accounting errors and have almost closed their books 30% faster, according to industry data.

Let’s talk about two of the most famous countries in the GCC, the Kingdom of Saudi Arabia and the UAE. Both countries’ online retail sales are expected to cross $300 billion by 2028. So if you want to stay competitive without losing your financial clarity, go for the best Tally partner in the UAE, Penieltech. We effortlessly help multiple businesses set up their systems correctly, so growth doesn’t come to them at the cost of chaos. 

Overall, for businesses eyeing 2025 and beyond, the message is simple: growing online without an integrated tool like Tally is like racing with the brakes half-pressed.