There are two fundamentally different ways to get Excel bank statement data into Tally. Most accountants use one without realising the other exists. This article explains both — and why the difference matters if you are doing this every month.
Method 1: XML File Import
XML (eXtensible Markup Language) is the format Tally uses for data import and export. The standard workflow looks like this:
- Download your bank statement as Excel from net banking
- Upload it to an online converter tool
- The tool converts the Excel data into a Tally XML file
- You download the XML file to your computer
- Open Tally → Gateway of Tally → Import Data
- Browse to the downloaded XML file
- Import runs — entries appear in Tally
This works. But it is seven steps, you download a file you do not really need, and there is no way to review individual entries before they hit Tally. If anything goes wrong (wrong ledger, duplicate entry), you find out after the fact.
Method 2: Direct Posting via Tally Connector
A Tally Connector is a small desktop application that runs on the same PC as Tally. It creates a local bridge between a web application and your running Tally instance. When you post from the web app, the Connector receives the data and writes entries directly into the open Tally company — no file needed.
The workflow with Synergy Automation:
- Upload Excel bank statement to Synergy Automation
- Review every entry in a table (edit, skip, assign ledgers)
- Click Post — entries appear in Tally instantly
Side-by-Side Comparison
| XML Import | Direct Posting (Synergy Automation) | |
|---|---|---|
| Steps to complete | 7 steps | 3 steps |
| File download needed | Yes (XML file) | No |
| Review & assign ledgers before posting | Not possible | Yes — edit narrations, assign Tally ledgers, skip entries |
| Works with Tally Prime 6.0 | Yes | Yes |
| Works with Tally ERP 9 | Yes | Yes |
| Free to use | Yes | Yes |
When Would You Still Use XML Import?
XML import is useful if: Tally is on a separate server you cannot install software on, you need to prepare entries in advance and import them later, or your workflow requires an XML file for audit trail purposes. For most solo accountants and small CA practices doing monthly bank entry, direct posting is faster and less error-prone.
Frequently Asked Questions
Q: Does the Synergy Connector need to stay running all the time?
No. Run the Synergy Connector only when you need to post entries. It is a small app you start when you open Tally to do bank entry work, and close after.
Q: Is direct posting safe — can it corrupt my Tally data?
Direct posting uses the same Tally API that Tally itself uses internally. Entries are created exactly as if you typed them in Tally. The review step before posting lets you verify everything before it touches Tally data.