Scalability refers to the capacity of an accounting software system to handle increasing volumes of data and processes without performance degradation. As businesses grow, they need to record more transactions, generate more reports, and manage more accounts. A scalable system like Tally, Busy, or ERP systems can accommodate such growth without needing to overhaul the software. Other options: - Simple refers to ease of use. - Speed means fast processing. - Reliability is about accurate and consistent outputs.