Lesson 18 of 20

Backup and restore in TallyPrime

A year of accounts lives in one folder on one computer. A backup takes two minutes. Losing the data takes weeks to repair, if it can be repaired at all.

Why backups matter

Computers fail, get stolen, catch viruses and are hit by ransomware that locks every file. Power cuts in the middle of saving can damage data. People delete the wrong company. In each case, the only cure is a recent copy of the data kept somewhere else. A business is also required by law to preserve its books for a number of years, so losing them is more than an inconvenience.

Take a backup

Press Alt+Y (Data) and choose Backup.
In the Backup Companies screen, Backup from is the data path where the company is kept; Backup to is the destination folder. Choose a folder on another drive: an external disk, a pen drive, or a folder that is synchronised to cloud storage.
Select the company or companies to back up from the list.
Accept. Tally writes the backup file to the destination.

You can set a default destination once through Alt+Y > Data Path Configuration (the company backup path), so that you do not have to type it each time.

Restore

Press Alt+Y (Data) and choose Restore.
Restore to: the data path into which the company should be placed. Restore from: the folder holding the backup.
Select the company and accept.

Take care: restoring a company over an existing copy of the same company replaces the current data with the backup. Anything entered after that backup was taken will be lost. If in doubt, restore to a different, empty folder and open the company from there to look at it first.

How often, and where

Every day on which vouchers were entered, at the end of work.
Before any risky step: a software update, moving to a new computer, splitting data, importing a large file, or year-end adjustments.
Keep several copies, not one that is overwritten: a simple scheme is one folder for each day of the week plus one for each month end.
Keep at least one copy away from the computer and the office: an external drive taken home, or cloud storage. A backup on the same disk as the data protects against nothing.
Mark the year-end backup clearly and keep it permanently.

Test your backups

A backup that cannot be restored is not a backup. Once a month, restore the latest one to a spare folder, open the company, and check that the last vouchers are there. It takes five minutes and is the only proof that your backups work.

Other ways data is protected

Company password and users. Set a password on the company, and where several people work on it, give each their own user name with only the rights they need. Security controls are set from Alt+K (Company).
Edit log. TallyPrime can keep a record of the creation and alteration of vouchers and masters, showing who changed what and when. Companies covered by the audit trail requirement of company law must use accounting software with this feature kept on; ask the accountant whether it applies.
Period locking. After a period is finalised, the accountant can stop back-dated entries so that reported figures do not change.
Power protection. A UPS prevents damage from power cuts during saving.
Antivirus and updates. Keep the operating system updated and do not open unexpected email attachments on the accounts computer.
Licensed software from the official source. Cracked copies from unknown sites are a common route for malware, and their data cannot be relied on.

If data is damaged

Do not keep trying things on the only copy. First copy the whole data folder elsewhere as it is. Then restore the most recent good backup to a separate folder and see how much is missing. Tally has a data repair function, and Tally Solutions and its partners offer support for damaged data; contact them through the official website. Re-enter what was lost from the paper vouchers, which is one more reason to file them in order.

Moving to a new computer

Take a backup on the old computer, install TallyPrime on the new one from the official site, restore the backup there, and check the latest vouchers and the Trial Balance against the old machine before you retire it. The licence has its own procedure for being moved; see Tally's help.

A simple daily routine

Finish entries; check the Day Book.
Alt+Y > Backup to today's folder on the external drive.
Shut the company (Ctrl+F3) and quit Tally (Ctrl+Q).
Unplug the external drive and put it away.

Questions learners ask

How do I take a backup in TallyPrime?

Press Alt+Y (Data), choose Backup, set the destination folder, select the company and accept.

Where should I keep Tally backups?

On a separate drive from the computer, with at least one copy outside the office or in cloud storage, and several dated copies instead of one.

Does restoring a backup overwrite current data?

Yes, if you restore the same company into the same data path. Entries made after the backup would be lost, so restore to a separate folder when unsure.

All lessons

What TallyPrime is Create a company Groups and ledgers Create ledgers Voucher types Contra voucher Payment voucher Receipt voucher Journal voucher Purchase voucher Sales voucher Debit and credit notes Stock items and units GST set-up GST entries Bank reconciliation Reports Common errors 30 day plan

Shortcut keys Group quiz Practice exercise Glossary

An independent learning site. Tally and TallyPrime are trademarks of Tally Solutions Private Limited. This site is not connected with, approved by or paid by Tally Solutions, and uses none of its logos, screens or course material. Keys and menu paths were checked against Tally's own help site on 12 November 2026; the software changes with each release, so if your screen differs, follow Tally's help (press Ctrl+F1). Tax treatment in the examples is for learning only: ask your accountant.