Take care of Security in Tally this way

You just can’t ignore security in Tally.

Tally is such a vast accounting software that you can do almost anything with it as far as it is related to accounting and business.

Every single detail of business, right from the name of the business to the Balance Sheet.

Just imagine everything a business can do and you can enter that data in Tally.

From accounting to the compliance of Laws in a particular country.

In India, there are certain laws which you have to take care of while doing business.

Some famous ones are Income Tax Law and Company Law, VAT Laws as per different states, Service Tax and so on.

Tally is also capable of preserving data as mentioned and required by these laws.

My point is, when you store so much of important and confidential data in Tally, it is risky if it is not protected.

Tally is a room stacked with confidential files and sensitive information that it is very important to secure it.

Tally is a locker with all the gold at one place.

What you will learn in this post

  • How to enable Security Features in Tally
  • How to limit core features from different users

In short you will learn everything which is required to secure your data in Tally and for the ultimate security in Tally.

But before that, just have a look of what can happen without using security in Tally. 😕

What can happen without security controls

Well, Tally has certain security features inbuilt by which you can keep your data in Tally more secure and safe from data thieves.secure

In fact, it is very much secure that if you forget your password, you also cannot get the data back.

That is a cut throat security in Tally.

But the security feature is not used by many people and they just skip it at the time of creation of a company in Tally.

This can be dangerous as your confidential data may get stolen or it may be used by your competitor against you.

In short anything can happen if you lose your data without proper security.

In the following post, you will learn how to implement security features in Tally such that it will be nearly impossible without your permission to access your confidential data in Tally.

You can even use features to make certain persons prohibit from doing specific tasks.

For example, you can set that a user named Rahul cannot create masters.

This feature is useful if Rahul’s task is only to pass routine entries for which creation of masters is not necessary.

Like this one example described above, you can implement security in many different ways for different users as well.

How to enable Security in Tally

Enabling security in Tally is as easy as creating a company in Tally.

Here is a step by step procedure to enable security in Tally.

I am explaining security features in Tally for people who have created company in Tally and want to enable security features in Tally.

And for people, who are creating a company, they just need to follow the post from the Company Alteration screen.

So, let us start.

From Gateway of Tally, go to Company Info.

Company Info. in Tally

You can press ALT+F3 also to directly open the Company Info menu in Tally.

That is one of the shortcuts in Tally to use Tally effectively.

Now select the fourth option called Alter or simply press A for the shortcut way. 😉

You will see a list of companies which are created in your Tally.

Select the one in which you want to enable security features in Tally.

In this case, I will select TallySchool.


And, you will see a Company Alteration screen which is almost similar to Company Creation screen.

It is will as shown in picture below.


As you can see, Security Control is set as No in Tally.

We will set it to Yes to use the security control in Tally or in other words, security feature in Tally.

Directly go to the Security Control option on the right side of the screen and set it to Yes.


You have to enter the name of the administrator and a password.

Administrator in Tally is the one who controls all the data in Tally for a particular company for which you are creating the administrator.

In this example, I am creating administrator for the company TallySchool and therefore the administrator will have the full control over it.

I am entering my name as administrator name which is Rishit and the password is 123.

You have to put strong administrator name and password so that it will be difficult for anyone to crack it.


Note in the picture above that Tally warns you about the forgetting your password.

It says it will make your data inaccessible which simply means your data will not recoverable if you forget your password.

I have not enabled the Audit Features because that is all together a different topic.

Now just press Enter a few times to skip all the options and save the changes that you did.

After that Tally will ask you to reload the company for saving the changes as shown in the picture below.


Press Enter and reload the company.

As soon as you reload the company, you will be asked to enter the Name of User and Password.

These are the ones which you entered just right now in the Security Control options.

Once you enter the username and password, you are ready to control Tally.

Now, what if there are more than one user using Tally?

That can be perfectly possible.

And therefore it is very important to have security and control over what those people can do according to their roles.

Let me explain it to you step by step about the procedure of how you can control the access functions of different persons using Tally.

How to set users in Tally

From Gateway of Tally, go to Company Info.

Then select Security Control in Tally as shown in the picture.


Now, select Users and Passwords to select or create new users and passwords.

It is displayed in the picture below.


You will see a List of Users for Company in Tally.

Here, you can enter the users according to the function you want to delegate.

In this example, I have created a user named Accountant with the Security Level of Data Entry.

We can also call security level a role in Tally.

Now, this user named Accountant can only do Data Entry in Tally and nothing else like alteration in ledgers and so on.

I have also added a password for better security.

Here is the picture to show you.


Press Enter and save the user.

To check it let us login with that user.

For logging in with the newly created user, we have to first log out and then again log in with the new user in Tally.

How to login with new user in Tally

First press ALT+F1 from Gateway of Tally to log out with the current user which is the administrator.

Again, login with the newly created user and password.

For a comparison, here is what Gateway of Tally looks like with the administrator logged in.


Now look at the Gateway of Tally with new user Accountant logged in whose security level is only Data Entry.


You can clearly see the difference.

The options through which only the entries are done are visible in the new user.

While in the old user which was the administrator, all the options are visible.

Can you make out any major difference?

The major difference is Alteration or Editing.

In the Administrator user, you can alter anything or edit anything.

In Accountant user, you can just do data entry and that is it.

You can only pass entries and view its effects, but you cannot create masters or edit masters in Tally when you are logged in with a user with Data Entry security level.

Important points to remember

Always make sure you enable Security control at the time of creating a company in Tally.

Because, it will be cumbersome to go and enter username and password in each and every company that you created.

But if you already created the companies without passwords, then there is no option but to manually go into each company and enable security controls.

Secondly regularly backup your data.

After enabling security control what is the use of it if your data is gone without any prior warning.

Make regular backups and I suggest uploading your backups on cloud services such as Google Drive or Dropbox.

They are free to use up to a certain extent.

This was the core matter of discussion and I am sure you will understand how to enable and use the security controls in Tally by watching the following video tutorial.

Security features in Tally – Explained

Have you enabled security features in Tally? What are your results? Share with me here in the comments.

If you are having any problem in implementing security controls in Tally, simply comment below and I will help you out! 🙂

6 thoughts on “Take care of Security in Tally this way

  1. poonam sharma says:

    thank you so much sir I am looking job before 4 months but due to half knowledge of account s I could not get good job now I feel confidence I got lots of knowledge by tally school …..thanks once again for create tally school.

  2. Sachin Bhoi says:

    “Because, it will be cumbersome to go and enter username and password in each and every company that you created.”
    I already created so many companies & wants to make same security control in each … is there any way to do that

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