How to Connect Power BI with Tally: A Simple Step-by-Step Guide

Many businesses use Tally for accounting, billing, and VAT. But when it comes to clear reports, charts, and dashboards, Tally has its limits.

This is why many companies connect Power BI with Tally.

Power BI helps you see your Tally data clearly, understand trends, and make better business decisions — without spending hours on manual reports.

Why Connect Power BI with Tally?

Tally stores your data. Power BI explains your data. By connecting them, you can:

• See sales and expenses in simple charts
• Track profit and loss easily
• Monitor cash flow
• Analyze VAT data
• Share reports with management

All reports update automatically, saving time and effort.

What Data from Tally Can Be Used in Power BI?

You can view and analyze:

• Sales & Purchase data
• Profit & Loss
• Balance Sheet
• VAT reports
• Customer and vendor balances
• Outstanding payments

All in one dashboard, instead of multiple reports.

Easy Ways to Connect Power BI with Tally




1. Export Tally Data to Excel (Manual Method)

• Export reports from Tally to Excel
• Load the Excel file into Power BI

2. Connect Power BI Directly to Tally (Semi-Automated Method)



• Power BI connects to Tally using XML or ODBC
• Data refreshes automatically

3. Use a Connector Tool



• A third-party tool connects Tally and Power BI
• Best for large businesses

Step-by-Step Guide: Connect Power BI with Tally




Step 1: Enable Connection in Tally

• 1.Open Tally
• 2.Go to Gateway of Tally
• 3.Press F12 (Configuration)
• 4.Turn ON: ODBC Server and Allow XML Requests

Keep Tally open during the connection.




Step 2: Open Power BI

• 1.Open Power BI Desktop
• 2.Click Get Data
• 3.Select Web or ODBC
• 4.Click Connect


Step 3: Load Data from Tally

• Enter the Tally local address (example):http://localhost:9000
• Sales
• Purchases
• Ledgers



Step 4: Clean & Prepare Data

• Remove unnecessary columns
• Rename fields
• Fix date formats


All in one dashboard, instead of multiple reports.




Step 5: Create Dashboards

You can now build:

• Sales charts
• Monthly profit reports
• Expense breakdown
• VAT summaries

All visuals update when data refreshes.




Step 6: Share Reports Online

• Publish reports to Power BI Cloud
• Share dashboards securely with your team
• Set automatic refresh

Step 3: Load Data from Tally

All visuals update when data refreshes.

• Keep ledger names consistent in Tally This helps Power BI group data correctly and avoids confusion in reports.
• Start with simple dashboards Begin with basic dashboards like sales, expenses, and profit. Avoid adding too many charts at once.
• Refresh data regularly Set up regular data refresh so reports always show updated information.
• Cross-check data with Tally During the initial setup, always match Power BI numbers with Tally reports to ensure accuracy.
• Use dashboards for decision-making Dashboards should help identify trends and issues, not just display numbers.

Common Mistakes and Challenges (and How to Avoid Them)

Common Mistakes

• Relying too much on Excel Manually exporting data again and again reduces the benefit of Power BI automation.
• Not cleaning data properly Unclean data can lead to confusing or incorrect reports.
• Adding too many visuals Too many charts on one dashboard can make it hard to understand insights.
• Sharing reports without access control Always limit access to sensitive financial data.

Common Challenges & Easy Solutions

Data not updating?

• Keep Tally open
• Check XML or ODBC connection settings

Reports not matching Tally numbers?

• Check filters and date ranges
• Validate totals with Tally reports

Dashboards look confusing?

• Remove unnecessary visuals
• Focus only on key metrics

Slow performance with large data?

• Limit data to required time periods
• Use summary-level reports instead of detailed views

Final Tip

Power BI works best when dashboards are simple, clean, and focused. Clear dashboards lead to faster understanding and better business decisions.




Contact Euclidz today to get started with Power BI and Tally integration.

FAQs Frequently Asked Questions

1. Can Power BI connect directly to Tally?

Yes. Power BI can connect to Tally using XML or ODBC, allowing businesses to analyze accounting data easily.

2. Can I analyze tax or VAT reports from Tally in Power BI?

Yes. Tax and VAT data from Tally can be shown in Power BI as clear dashboards, including payable and receivable summaries.

3. Will Power BI change my Tally accounting data?

No. Power BI only reads data from Tally. Your accounting records remain safe and unchanged.

4. Can reports update automatically?

Yes. Once connected, reports can refresh automatically, reducing manual work.

5. Is Power BI free to use?

Power BI Desktop is free. A paid license is required only if you want to share reports online.

6. Who should use Power BI with Tally?

Any business that wants clear reports, less manual effort, and better business insights