Khatabook vs TallyPrime

Updated November 2026 · AppBreakup editorial

Khatabook

Digital credit ledger app for small Indian shops to track customer dues and payments.

Free plan + paid

Visit Khatabook Khatabook profile

TallyPrime

India's most widely used desktop accounting, inventory and GST software for small and mid-sized businesses.

Paid

Visit TallyPrime TallyPrime profile

The short answer

Khatabook is a free phone ledger for small Indian shops to record customer credit and send reminders. TallyPrime is full desktop accounting, inventory and GST compliance software for small and mid-sized businesses, usually run by an accountant. They sit at opposite ends: a micro-shop wanting to track who owes what should use Khatabook; a business that needs proper books and GST returns needs TallyPrime or similar.

Khatabook or TallyPrime: our take

These two apps solve different problems. Khatabook replaces the paper credit book many Indian shopkeepers keep. You record what customers and suppliers owe or have paid, see running balances and send reminders over SMS or WhatsApp. It is an Android app with 5 crore+ downloads, works in 12 Indian languages, and its core ledger is free with paid premium features. It does not do double-entry books or GST returns.

TallyPrime, from Tally Solutions, is the accounting package most small and mid-sized Indian businesses have grown up with. It covers accounting, inventory, invoicing, banking, payroll and statutory compliance including GST filing, e-invoicing and e-way bills. It is a Windows desktop application, fast from the keyboard once learned but with a dated look and a learning curve. Cloud access, remote reports and WhatsApp sharing are paid add-ons.

Pricing reflects the gap. Khatabook's ledger costs nothing. TallyPrime is paid, starting from ₹750 on rental, with Silver (single user) and Gold (multi-user) editions available either as a rental or a lifetime licence with a yearly software services subscription for updates. A free trial and an educational mode exist. TallyPrime's biggest strength is the large pool of Tally-trained accountants in India, so handing books to an accountant is straightforward.

A small shop owner who mostly needs to know who owes money, on a phone, should pick Khatabook. A business that must file GST, manage stock properly and keep books an accountant can audit should pick TallyPrime. Some businesses use both: Khatabook at the counter for informal customer credit, and TallyPrime in the back office for the actual accounts.

Choose Khatabook if…

Indian shopkeepers who want a simple phone ledger for customer credit and payment reminders
You want a free option (TallyPrime is paid only)
You need Android, which TallyPrime doesn't list
Free core ledger that is quick to learn
Works in 12 Indian languages

Choose TallyPrime if…

Indian SMEs that need GST compliance, inventory and an accountant who knows Tally
You need Windows, which Khatabook doesn't list
Covers GST, e-invoicing and inventory in one package
Huge pool of trained accountants in India

What is Khatabook?

Khatabook replaces the paper khata, the credit book many Indian shopkeepers keep for customers who pay later. You add customers and suppliers, record what they owe or have paid, and the app keeps running balances and can send payment reminders over SMS or WhatsApp. It started as an Android app from a Bengaluru startup and grew quickly among kirana stores and other small merchants, and it works in a dozen Indian languages. The core ledger is free, with paid premium features on top. It is built for micro and small businesses in India rather than for full double-entry accounting, so it does not replace a GST accounting package or an accountant's software. Shops that need proper GST invoices or stock tracking usually pair it with, or move to, a billing app.

What is TallyPrime?

TallyPrime, from Tally Solutions, is the current version of the accounting package that most small and mid-sized businesses in India and many in the Middle East and Africa have grown up with. It handles accounting, inventory, invoicing, banking, payroll and statutory compliance such as GST returns, e-invoicing and e-way bills, and it is fast to use from the keyboard once learned. It is a Windows desktop application at heart, with paid add-ons for cloud access, remote reports and WhatsApp sharing. Licences come as Silver for a single user or Gold for multi-user setups, either as a lifetime licence with a yearly software services subscription for updates, or as a rental. A free trial and an educational mode are available. The huge pool of Tally-trained accountants is its biggest strength; the main drawbacks are a desktop-first design, a dated look, and weaker fit outside its core markets.

Side by side

Attribute	Khatabook	TallyPrime
Pricing	Free plan + paid	Paid
Open source	No	No
Self-hostable	No	No
Platforms	Android	Windows
Best for	Indian shopkeepers who want a simple phone ledger for customer credit and payment reminders	Indian SMEs that need GST compliance, inventory and an accountant who knows Tally
Status	Active	Active