Power of Simplicity
What is Tally?
Tally is an ERP accounting software. It provides business solutions, GST software, and in-built features which makes it popular among enterprises around the world.
It is very different from manual accounting where there are high chances of human error. When you are using the Tally software, you just have to input all your data and tell the software how you want the data to be processed, and the software does all the calculations for you. This data can then be backed up for future use and will be available to check at the click of a button. Today, Tally software is part of small, medium, and large enterprises alike. Tally ERP 9 was released in the year 2009, and it is one of the most used accounting software. Tally has recently released a new version of Tally ERP 9 software in the year 2020. This software is called Tally Prime and it offers more advanced features.
It is a counting method using vertical marks to represent quantities, scores, or occurrences. Tally is a numerical counting system that employs vertical marks, known as tally marks, to represent quantities, scores, or occurrences. Each individual mark typically corresponds to one unit, and after counting four marks, the fifth mark is drawn diagonally across the previous four to indicate the completion of a set of five. This grouping simplifies counting and tracking, making it easier to keep a record of large quantities. Tallying is widely used in various fields such as voting, record-keeping, surveys, and any situation where a quick and visual method of counting is needed. It provides a straightforward and efficient way to represent and comprehend numerical data.
Tally is a counting system where each vertical mark represents a unit, and every fifth mark is crossed diagonally, simplifying counting and tracking. It’s commonly used for record-keeping, surveys, or tallying votes.
How to Use Tally?
Step 1 :- Setting Up Tally
INSTALL THE SOFTWARE
Tally 9 ERP can be purchased and downloaded from the Tally website. You can download a 30-day trial version if you're not sure if you want to use it yet. Tally 9 is for Windows only. You can also use Tally in Educational Mode, which allows you to learn how to use the software without having to purchase a license.
NAVIGATE THE TALLY
Tally is designed to be navigated by using the keyboard.Everything in Tally has a keyboard shortcut. Usually, the key is displayed next to each available option. Learning how to get around with the keyboard will increase your efficiency.
CREATE A COMPANY
In order to use Tally, you will need to create a company in the program. Even if you aren't using Tally professionally, you still need to create a company. In the opening menu, select "Create Company".
Turn on "Auto Backup" to ensure that a copy of all your work is saved in case something happens to original work. If you are using Tally to just manage your accounts, select "Accounts info" in the maintain menu. If you are using Tally for inventory management as well, select "Accounts with inventory", enter the start of your financial year and the start date for the books.
STEP 2:- CREATING LEDGERS
UNDERSTANDING LEDGERS
Ledgers record all of the transactions for that account. You will need to create a ledger for each account that you do business with. There are two ledgers included: "Cash" and "Profit and Loss Account". You can create as many other ledgers as you need.
OPEN THE CREATE LEDGER WINDOW
Select "Accounts Info" from the Gateway menu. Choose the "Ledgers" option. You can then choose to create a single ledger or create multiple ledgers.
SELECT THE GROUP
The first thing you will need to do when creating a ledger is to select which group it will be assigned to. Selecting the right group is important, as it will affect how numbers and sales are totaled later. The list of available groups will be on the right side of the screen.
GIVE THE LEDGER A NAME
Enter a name for your ledger. This will allow you to easily know what the ledger contains without having to open it.
ENTER AN OPENING BALANCE
When creating a ledger, you will need to indicate the balance that the ledger is starting with. If you are creating a ledger for your bank account, this would be the amount currently in it. If you are starting a ledger for the amount owed to a contractor, the amount you owe would be the starting balance.
STEP 3:- CREATING VOUCHER
VOUCHER PURPOSE
A voucher is a document that contains the details of a financial transaction. Vouchers are used for all aspects of a business, from sales to deposits. Tally comes with several of the most popular types of vouchers pre-configured.
OPEN THE VOUCHER PAGE
From the Gateway menu, select "Accounting Vouchers".
CHOOSE THE VOUCHER TO CREATE
On the right menu, you will see a list of available vouchers you can create. Select the one that meets your needs best.
Payment Voucher (F5) - This voucher is for payments made by the business.
Sales Voucher/Invoice (F8) - This voucher is for all sales made by the company.
Purchase Voucher (F9) - This is for the purchase of assets by the company.
ENTER IN THE REQUIRED INFORMATION
The information needed to complete the voucher will vary depending on the type of voucher you want to create. You will typically need to determine which ledger the voucher will be attached to, as well as enter the date and names of any involved parties.
TALLY SHORTCUT KEYS
CTRL+F1 :- To select payroll voucher from the inventory voucher
CTRL+F2:- To select sales order voucher from the accounting voucher
CTRL+F4:-To select the purchase order voucher from the accounting voucher screen
CTRL+F8:- To select the credit note vouchers
CTRL+F9:-To select the debit note voucher
CTRL+F10:- To select the memorandum voucher
Accounting Using Tally
Tally is nothing but accounting in digital format. Maintaining accounts in manual books, we write accounting entries as debit and credit. In Tally, we create entries the same way. So how do we do it Tally that the entire thing could be pictured as the installation of any machinery in the workplace.
Process 1: Installation : (Buying a machine, we first install it for using it)
Tally software can be purchased and downloaded from the Tally website. We can download a 30-day trialversion if we are not sure if we want to use it yet. Tally 9 is for Windows only. We can also use Tally in Educational Mode, which allows you to learn how to use the software without having to purchase a license. Some features are restricted in this mode.
Process 2: Navigation : (After installation is complete, we use it’s hardware supports or software supports to use the machine)Tally.ERP 9 is designed to be navigated by using the keyboard. While we can click any option we want, everything in Tally has a keyboard shortcut. The Shortcut as we say is usually the key displayed next to each available option. Learning how to get around with the keyboard will increase efficiency.
Process 3: Create a company : (After we get some idea about the machine, we set the program for it to work )
CREATING LEDGERS
Understanding what ledgers are for: Ledgers in Tally record all of the transactions for that account. One will need to create a ledger for each account that they do business with. Two ledgers are included in Tally by default: "Cash" and "Profit and Loss Account". We can create as many other ledgers as we need. How to?
Step 1: Open Create Ledger window by following the given direction: Gateway of Tally > Account’s Info > Ledger > Create
Step 2: Select the group. Here we will be required to select as to which group the ledger will be assigned to. Choosing the right group is important, as it will affect how numbers and sales are totalled later
Step 3: Give the ledger a name. Enter a name for your ledger to know what the ledger contains in it without having to open it
Step 4: Enter an opening balance (if any).For Example: If you are creating a ledger for your bank account, this would be the amount currently in it. If you are starting a ledger for the amount owed to a Vendor, the amount you owe would be the starting balance
CREATING VOUCHER
Understand the purpose of vouchers: It is a document that contains the details of a financial transaction. These are used for all aspects of a business, from sales to deposits. Tally.ERP 9 comes with several of the most popular types of vouchers pre-configured for usage. How to create different vouchers?
Step 2: In this step, we can choose the voucher we want to create. Here’s is the list :
F4: Contra : For recording money deposited into or withdrawn from the bank, or for recording any sum transferred between two accounts in the same company.
F5: Payment This voucher is used for payments made by the business.
F6: Receipts For recording any income earned by the company (sales, rent, interest, etc.) and for recording the proceeds received from Sundry debtors.
F7: Journal For recording all adjustment or due entries such as prepaid expense, accrued income etc., For recording purchase of assets for recording Input tax reversal entries, reverse charge entries under GST
Step 3: Enter the required information.
The information needed to complete the voucher will vary depending on the type of voucher we want to create. We will have to typically need to determine which ledger the voucher will be attached to, as well as enter the date and names of any involved parties.
Step 1: Open the vouchers screen using the following direction: Gateway of Tally > Accounting Vouchers