Quick Answer

You should not keep or operate live TallyPrime company data directly inside a Google Drive, Microsoft OneDrive or Dropbox synchronised folder.

These services synchronise individual files between devices. TallyPrime company data, however, consists of multiple related files that may be opened and updated together. A sync client can upload some files before others, delay locked files, download an older copy or create conflicting versions. The resulting company folder may represent an inconsistent point in time and can become damaged.

Google Drive, OneDrive and Dropbox can be used to store completed TallyPrime backups, provided the backup is created correctly and allowed to finish synchronising. They should not be treated as a replacement for a proper LAN data location, hosted Windows environment, TallyPrime Server or Tally’s supported cloud-backup facility.

TallyPrime Release 7.0 also introduced TallyDrive, a cloud-backup facility designed specifically for TallyPrime backups. It is a backup and restore service—not a folder from which multiple computers directly operate the live company data. TallyHelp: TallyDrive cloud backup

Complete Article

Understanding Live Data and Backup Data

The most important distinction is between live working data and a backup copy.

Live TallyPrime data

This is the company folder that TallyPrime opens while users create vouchers, modify ledgers, generate reports or perform other operations.

Its files can change continuously while the company is open.

TallyPrime backup

A backup is a separate, recoverable copy produced after TallyPrime has captured the company’s data in a controlled manner. It is intended for storage and later restoration.

Usage	Google Drive, OneDrive or Dropbox
Open and operate live TallyPrime company data	Not recommended
Let two computers sync and open the same company	Extremely unsafe
Store a completed TallyPrime backup	Acceptable
Upload a closed manual copy of the company folder	Possible, but a Tally-generated backup is preferable
Use as the only backup location	Not recommended
Keep additional off-site backup copies	Recommended
Replace a proper multi-user server	No

Why Cloud-Synchronised Folders Are Unsafe for Live TallyPrime Data

Google Drive, OneDrive and Dropbox are file-synchronisation platforms. They are not database servers and do not provide TallyPrime-aware transaction control.

1. Related files may synchronise at different times

TallyPrime may update several related files during a transaction. A cloud client observes those changes and uploads them separately.

For example:

1. TallyPrime updates File A and File B.
2. Google Drive uploads the new File A.
3. File B is still open, locked or waiting to upload.
4. Another computer downloads the new File A but retains the old File B.
5. The second computer now has a mismatched company folder.

The folder may look complete in Windows Explorer while its internal files belong to different stages of the accounts.

2. Cloud sync does not provide database-level locking

Multi-user accounting software needs coordinated control of records and transactions. A file-sync utility normally does not coordinate TallyPrime users working on different computers.

It can identify that the same file was changed in two places, but it cannot intelligently merge Tally vouchers, ledger changes or accounting records.

Dropbox confirms that simultaneous or offline edits can result in a conflicted copy, including when a file is left open on another computer. Resolving such conflicts requires comparing the files manually—something that cannot safely merge a set of Tally company files. Dropbox: What is a conflicted copy?

3. A computer may open an outdated local copy

Cloud drives maintain local or cached copies of files. If a system is offline, synchronisation is paused or the user starts TallyPrime before downloading is complete, that computer may open older data.

When it reconnects, the service may:

• Upload the old files over newer files
• Create duplicate or conflicted files
• Move unresolved files elsewhere
• Keep different versions on different computers
• Ask the user to select which copy should survive

Google states that incompatible local and cloud changes can prevent the original file from synchronising. In some situations, files may be placed in a Lost & Found location. Google Drive: Fix Drive for desktop problems

4. Locked or temporary files may not synchronise

While TallyPrime is running, some files may remain open or locked. The synchronisation client may postpone them and upload other files first.

Some cloud services also exclude particular temporary or system files. Microsoft states that OneDrive does not synchronise temporary .tmp files, and organisations may block additional file types. Microsoft: OneDrive and SharePoint restrictions

Even if an excluded file is not permanent Tally data, selective or delayed synchronisation demonstrates why a sync folder cannot guarantee an exact live database snapshot.

5. Files On-Demand can introduce another layer of risk

OneDrive Files On-Demand, Google Drive streaming and Dropbox online-only storage may leave some files in the cloud until an application requests them.

A live Tally company should not depend on placeholders, downloads on demand or a sync client remaining signed in. Interrupted downloads, insufficient disk space, account disconnection or cache problems can make parts of the folder temporarily unavailable.

Google warns that streamed files depend on a local cache and that unsynchronised changes may be lost if the cache is cleared or damaged. Google Drive advanced guide

Selecting “Always keep on this device” may reduce availability problems, but it does not solve simultaneous changes, inconsistent synchronisation or database-locking limitations.

6. Internet interruptions can leave an incomplete cloud copy

TallyPrime may continue updating the local company while the internet is slow or disconnected. The sync queue can then contain hundreds of pending changes.

If the computer fails before the queue finishes, the cloud may contain only part of the latest update.

A green check mark shows that the sync application believes its current queue has finished. It does not certify that the uploaded Tally company forms a valid, application-consistent backup.

7. Deletions and corruption can also synchronise

Cloud sync is not automatically an independent backup.

If ransomware encrypts the local Tally files, a user accidentally deletes the folder or damaged files replace healthy files, the synchronisation client may upload that same change to the cloud.

Version history may help in some situations, but its availability and retention depend on the provider and subscription. It should not be the only recovery plan for accounting data.

What Damage Can Occur?

Using live TallyPrime data in a synchronised folder can lead to:

• Company not appearing in the company list
• Company failing to load
• Errors while opening or altering vouchers
• Missing recently entered vouchers
• Old vouchers replacing newer entries
• Duplicate or conflicted company folders
• Incorrect balances or inventory reports
• Damaged indexes or internal relationships
• Different data visible on different computers
• Repeated requests to repair or rewrite company data
• Loss of work entered while another copy was active
• Uncertainty about which folder contains the latest valid accounts

A repair or rewrite operation may correct some structural problems, but it cannot reliably reconstruct valid transactions that were overwritten, omitted or split between conflicting cloud copies. Tally provides repair guidance for situations including system crashes, disk failures and data corruption, but prevention and verified backups remain essential. TallyHelp: Repair company data

The Most Dangerous Setup

The highest-risk configuration is:

1. The same Tally company folder is synchronised to two or more computers.
2. Users open TallyPrime independently on those computers.
3. One or more computers work offline or before synchronisation finishes.
4. Each computer uploads its changes later.

This setup does not create proper TallyPrime multi-user access. It creates separate local copies that compete through a file-sync service.

Even if it appears to work for days or months, a sync delay or simultaneous modification can eventually damage the company data.

Is It Safe for a Single Computer?

Keeping live Tally data in a synchronised folder is still not recommended even when only one computer is used.

The risk is lower because there is no second user modifying another copy, but the sync client can still:

• Process files while TallyPrime is writing to them
• Delay locked files
• restore an older version after a conflict
• move unsynchronised files
• lose cached changes
• synchronise corruption, encryption or accidental deletion

A safer configuration is to keep the live company data in a normal local or server folder and send only completed backups to cloud storage.

Safe Method: Store Tally Backups in Cloud Storage

A suitable backup workflow is:

Live Tally data on local disk or server
                ↓
Create a TallyPrime backup
                ↓
Save initially to a separate local backup folder
                ↓
Copy or synchronise that completed backup to cloud storage
                ↓
Verify that cloud synchronisation has finished
                ↓
Periodically test restoration to another folder

Recommended folder arrangement

D:\TallyData\                 Live company data
D:\TallyBackups\Daily\        Local daily backups
D:\TallyBackups\Weekly\       Local weekly backups
OneDrive\TallyBackups\        Off-site backup copies

The live D:\TallyData folder should remain outside the OneDrive, Google Drive or Dropbox sync tree.

Safe backup procedure

1. Confirm that the correct company is open.
2. Ask other users to finish or save their work if your backup method requires exclusive access.
3. Use TallyPrime’s built-in backup facility.
4. Create the backup in a separate local folder.
5. Use a date-and-time-based folder or backup name where available.
6. Confirm that the backup operation completed successfully.
7. Copy or synchronise the completed backup to the cloud.
8. Wait until the cloud client reports that synchronisation is complete.
9. Retain multiple generations instead of replacing one backup repeatedly.
10. Test restoration periodically using a different data location.

Tally provides an official restore process for recovering company data from a backup. TallyHelp: Restore company backup

Using TallyDrive for Cloud Backup

TallyPrime Release 7.0 introduced TallyDrive, Tally’s cloud-backup facility. According to Tally’s official guidance, it can be used to store and restore TallyPrime backups in secure cloud storage. TallyPrime 7.0 TallyDrive explainer

Where it is available and suitable for the organisation, TallyDrive is preferable to placing the live company folder inside a general-purpose sync service because the backup process is integrated with TallyPrime.

However, remember:

• TallyDrive protects backup copies.
• It does not mean the live company folder should be opened from Google Drive, OneDrive or Dropbox.
• Backup scheduling, retention, entitlement and storage availability should be checked for the organisation’s current TallyPrime release and subscription.
• Important backups should still be tested through an actual restore.

Safe Options for Multiple Users in the Same Office

For simultaneous access inside an office, use a proper TallyPrime network arrangement:

• Store the live company data on one reliable server or designated host computer.
• Connect client computers through a stable wired LAN.
• Use the appropriate TallyPrime multi-user licence.
• Configure correct Windows folder permissions.
• Protect the host with a UPS.
• Back up the data independently.
• Avoid Wi-Fi for critical live-data access where a stable wired connection is available.

TallyPrime Server may also be considered where the organisation requires more control, monitoring and management of concurrent data access. Requirements and licensing should be confirmed with an authorised Tally partner.

Safe Options for Access from Different Locations

If users need to operate the same live Tally company from home, branches or other cities, use an environment in which TallyPrime and its live data remain together.

Suitable approaches can include:

Remote Desktop to the office server

Users connect remotely to a Windows computer or server on which TallyPrime and the company data are located. Only the screen, keyboard and mouse activity travel across the internet.

Properly hosted Windows environment

TallyPrime and its data can be placed on a suitable hosted Windows system managed for remote access, licensing, security and backup.

Tally-supported remote capabilities

Depending on the required operations, licence and current product capabilities, Tally’s connected or remote-access services may be suitable.

A cloud-storage folder alone is not an alternative to these architectures.

What If Live Tally Data Is Already in OneDrive, Google Drive or Dropbox?

Do not move the folder while TallyPrime or the synchronisation client is actively modifying it.

Use this controlled procedure:

1. Ask every user to close the affected Tally company.
2. Exit TallyPrime on all computers.
3. Identify which computer has the latest complete and correct data.
4. Confirm that no second computer is still uploading changes.
5. Take an independent copy of every available version before changing anything.
6. Preserve conflicted copies instead of deleting them immediately.
7. Create a normal local folder outside all cloud-sync locations.
8. Copy the selected company folder to that local location.
9. Configure TallyPrime to use the new local or server data path.
10. Open the company and verify recent vouchers, balances and inventory.
11. Create a fresh TallyPrime backup.
12. Upload only that completed backup to the cloud.
13. Test the backup by restoring it into a separate test location.

If different computers show different recent vouchers, do not assume that the folder with the newest modification date is complete. Preserve all copies and obtain help from an experienced Tally support professional before rewriting or replacing data.

Important Backup Rules

Follow the 3-2-1 principle

Maintain:

• At least three copies of important data
• On at least two different types of storage
• With at least one copy stored off-site

For example:

1. Live data on the server
2. Daily backup on a separate local or network disk
3. Completed backup in TallyDrive, OneDrive, Google Drive or Dropbox

Keep several restore points

Do not retain only one continuously overwritten backup. A sensible policy may include:

• Daily backups for the recent working period
• Weekly backups for several weeks
• Monthly backups for a longer period
• Year-end backups retained according to accounting and legal requirements

The exact retention period should be decided according to the organisation’s transaction volume, statutory obligations and recovery needs.

Test the backups

A file existing in the cloud does not prove that it can be restored.

Periodically restore a backup into a separate test folder and confirm:

• The company opens
• Recent vouchers are present
• Ledger balances are reasonable
• Inventory reports are available
• The expected financial period is included
• The restored company is not accidentally used as live data

Secure the cloud account

Enable:

• Multi-factor authentication
• A strong, unique password
• Limited folder sharing
• Recovery contact information
• Alerts for suspicious sign-ins
• Appropriate administrator controls for business accounts

Accounting backups can contain confidential financial, customer, supplier, tax and banking information. Do not share the cloud-backup folder through public links.

Common Mistakes to Avoid

• Opening the same synced company from two computers
• Assuming “Always keep on this device” makes live data safe
• Copying the live folder while users are entering vouchers
• Restoring a backup over the only working company
• Treating sync status as proof of backup validity
• Keeping only one backup version
• Allowing every employee to delete cloud backups
• Ignoring conflicted-copy warnings
• Disconnecting a sync account before preserving unsynchronised files
• Performing repair or rewrite without first copying the existing data
• Keeping the live data and all backups on the same physical disk
• Never testing whether backups can actually be restored

Frequently Asked Questions

1. Can I set the TallyPrime data path directly to OneDrive?

It may be technically possible to select a locally synchronised OneDrive folder, but it should not be used as the live TallyPrime company location. File synchronisation cannot guarantee that all related company files remain consistent.

2. Can TallyPrime run directly from Google Drive?

TallyPrime cannot safely treat Google Drive’s synchronised or streamed storage as a database server. Keep live data locally or on a proper network host and use Google Drive only for completed backups.

3. Is Dropbox safe for live Tally data?

No. Dropbox may create conflicted copies when a file is changed in multiple locations, edited offline or left open elsewhere. Such copies cannot automatically merge TallyPrime transactions.

4. Can I use OneDrive if only one person operates TallyPrime?

The risk is lower than in a multi-computer setup, but it is still not recommended. The sync client may process an incomplete set of changing files. Keep live data outside OneDrive and synchronise completed backups instead.

5. Does “Always keep on this device” make OneDrive safe for Tally?

No. It makes files locally available but does not provide Tally-aware file locking, transaction control or consistent synchronisation across related database files.

6. Can two branch offices open the same Tally data through Google Drive?

No. Each branch would be working on its own synchronised copy. Changes can conflict, overwrite one another or produce an inconsistent company folder.

7. Can I pause syncing while using Tally and resume it afterward?

This may reduce active-sync interference on a single computer, but it remains an error-prone manual workaround. Forgetting to pause, resume or wait for completion can expose the data to conflicts. A proper backup workflow is safer.

8. Can I copy the Tally company folder to the cloud after closing TallyPrime?

Yes, provided all users have closed the company and the copy finishes completely. However, using TallyPrime’s built-in backup facility is generally preferable because it creates a controlled backup intended for restoration.

9. Is TallyDrive the same as using Google Drive?

No. TallyDrive is a TallyPrime-integrated cloud-backup facility. Google Drive is a general-purpose file-sync service.

10. Can I use Google Drive, OneDrive or Dropbox as an additional backup?

Yes. Store completed, verified backups there while retaining other local or offline copies.

11. Will cloud version history always recover damaged Tally data?

Not necessarily. A historical version of one file may not match the historical versions of all other company files. Recovery must preserve a consistent set of related files.

12. Does a green sync tick mean the Tally backup is valid?

No. It indicates that the sync client has completed its current work. Restore testing is required to confirm that a backup is usable.

13. What should I do if Dropbox creates conflicted Tally files?

Stop using the affected company immediately, close TallyPrime everywhere and preserve all versions. Do not randomly rename or merge files. Restore a verified backup or obtain professional Tally data-recovery assistance.

14. Can a NAS be used for TallyPrime data?

A properly configured NAS may provide local network file access, but its compatibility, locking behaviour, network stability, permissions and backup arrangements must be verified. A Windows host or supported server configuration is generally easier to manage and troubleshoot.

15. Is Wi-Fi suitable for multi-user Tally data?

A stable network is essential. Wired Ethernet is preferable for critical multi-user accounting work because Wi-Fi interruptions can disrupt access to live data.

16. Can ransomware damage cloud copies too?

Yes. Encrypted local files can synchronise to the cloud. Maintain versioned, offline or otherwise protected backups in addition to ordinary synchronisation.

17. Should I compress the backup before uploading it?

A completed TallyPrime backup can be stored as produced. If additional compression is used, keep the original backup structure intact and test the complete download, extraction and restore process.

18. How often should TallyPrime data be backed up?

The frequency should reflect transaction volume. A business entering transactions throughout the day may need daily or more frequent protected backups. Weekly-only backup may leave too much work exposed.

19. Can I open a restored company directly from the cloud folder?

Restore it to a normal local or server data location first. Do not operate the restored company from the cloud-sync folder.

20. What is the safest method for remote TallyPrime access?

Keep TallyPrime and the live data together on a controlled office or hosted Windows system, then access that system remotely. Protect it with suitable licensing, authentication, network security, backups and UPS support.

Final Recommendation

Do not use Google Drive, OneDrive or Dropbox as the live data location for TallyPrime. This applies especially when multiple computers or branch offices are involved.

Use the following model:

• Keep live data on a reliable local disk, Windows host or properly configured server.
• Use the correct TallyPrime multi-user environment for concurrent office users.
• Use Remote Desktop or a suitable hosted Windows environment for remote operation.
• Create regular TallyPrime backups.
• Store completed backups in TallyDrive or a general-purpose cloud service.
• Maintain several backup generations.
• Keep at least one independent or offline copy.
• Test restoration periodically.

Google Drive, OneDrive and Dropbox are useful parts of a TallyPrime backup strategy. They should not be mistaken for a live accounting database server.

 

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