Tally
Module I- User Interface and Company Management.
I. Introduction to Tally Software:
• Tally is an ERP (Enterprise Resource Planning) accounting software package used for recording
day to day business data of the company. Shyam Sundar Goenka and Bharat Goenka together
started Peutronics in 1986 and renamed it tally in 1988. Latest version of Tally is “Tally Prime”.
• The software is used to simplify business operations related to finance management, inventory
management, payroll, taxation and more.
➢ Features of Tally :
1. Accounting – Tally ERP 9 provides comprehensive accounting functions, allowing businesses to
maintain their books of accounts accurately.
2. Inventory Management – It helps to manage inventory efficiently with features like stock
categorization, stock valuation, Batch wise tracking and automatic re-order level calculation.
3. Financial Management- It offers features like cash flow projections, fund flow analysis,
budgeting and credit management.
4. Billing and Invoicing- It enables business to generate and customize invoices, sales order,
purchase order, delivery notes ensuring smooth transaction process.
5. Taxation – Tally ERP 9 supports various types of tax computation and generates GST and VAT
invoices.
6. Payroll Management – It simplifies the process of payroll management by automating the
process of salary calculation, attendance tracking, leave management, generating pay slips.
7. Financial Reporting – Tally ERP 9 provides wide range of pre defined reports like balance sheet,
profit and loss statement, cash flow statement and more. Users can create customized reports
based on specific requirements.
➢ Advantages of Tally :
1. Data security: Tally software is very secure because it uses advanced encryption techniques
which helps protect sensitive information from being accessed by unauthorized individuals or
hackers.
2. Multi linguistic support: It is one of tally’s most significant advantages. This feature can be
particularly used for businesses that operate across several countries or regions that have multi
lingual employees.
3. Remote access: Tally’s internet collaboration and access features let businesses use the program
whenever and wherever they choose. Companies with multiple sites and distant workers find
this feature particularly useful.
4. Easy access to documents: Tally saves all bills, vouchers, receipts in its document or archive
folder. It gives fast and easy access to documents recently stored.
, 5. Audit tool- Tally goes about as an audit tool as it does customary reviews of organizations. It
completes an intensive check towards the start of the financial year and ensures transactions
are easily being done.
➢ Types of accounts and Rules of accounting:
A. Personal Account- – As the name suggests, Personal Accounts are the ones that are related with
individuals, companies, firms, group of associations etc. These persons could include natural
persons, artificial persons or representative persons.
Examples: Veer’s A/c, Ayan’s A/c, Kapoor Pvt Ltd A/c, Outstanding Wages A/c, Prepaid Expense
A/c etc.
Golden Rule: Debit the Receiver, Credit the Giver
B. Real Account- Real Accounts are the ones that are related with properties, assets or
possessions. These properties can be both physically existing as well as non physical in nature.
Thus, Real Accounts can be of two types: Tangible Real Accounts (which have physical existence)
and Intangible Real accounts (such assets have some value attached to them)
Examples: Machinery A/c, Vehicle A/c, trademarks, patents, goodwill, copyrights etc.
Golden Rule: Debit What Comes In, Credit What Goes Out
C. Nominal Account – Nominal Accounts relate to income, expenses, losses or gains.
Examples: Wages A/c, Salary A/c, Rent A/c etc.
Golden Rule: Debit All Expenses and Losses, Credit All Incomes and Gains
➢ Financial Statements: Financial statements are written records that convey the business
activities and the financial performance of a company. Primary financial statements include the
balance sheet, income statement, statement of cash flow, and statement of changes in equity.
• The balance sheet provides an overview of assets, liabilities, and shareholders’ equity as
a snapshot in time
• The income statement primarily focuses on a company’s revenues and expenses during a
particular period.
• The cash flow statement (CFS) measures how well a company generates cash to pay its
debt obligations, fund its operating expenses, and fund investments.
• The statement of changes in equity records how profits are retained within a company
for future growth or distributed to external parties.
Module I- User Interface and Company Management.
I. Introduction to Tally Software:
• Tally is an ERP (Enterprise Resource Planning) accounting software package used for recording
day to day business data of the company. Shyam Sundar Goenka and Bharat Goenka together
started Peutronics in 1986 and renamed it tally in 1988. Latest version of Tally is “Tally Prime”.
• The software is used to simplify business operations related to finance management, inventory
management, payroll, taxation and more.
➢ Features of Tally :
1. Accounting – Tally ERP 9 provides comprehensive accounting functions, allowing businesses to
maintain their books of accounts accurately.
2. Inventory Management – It helps to manage inventory efficiently with features like stock
categorization, stock valuation, Batch wise tracking and automatic re-order level calculation.
3. Financial Management- It offers features like cash flow projections, fund flow analysis,
budgeting and credit management.
4. Billing and Invoicing- It enables business to generate and customize invoices, sales order,
purchase order, delivery notes ensuring smooth transaction process.
5. Taxation – Tally ERP 9 supports various types of tax computation and generates GST and VAT
invoices.
6. Payroll Management – It simplifies the process of payroll management by automating the
process of salary calculation, attendance tracking, leave management, generating pay slips.
7. Financial Reporting – Tally ERP 9 provides wide range of pre defined reports like balance sheet,
profit and loss statement, cash flow statement and more. Users can create customized reports
based on specific requirements.
➢ Advantages of Tally :
1. Data security: Tally software is very secure because it uses advanced encryption techniques
which helps protect sensitive information from being accessed by unauthorized individuals or
hackers.
2. Multi linguistic support: It is one of tally’s most significant advantages. This feature can be
particularly used for businesses that operate across several countries or regions that have multi
lingual employees.
3. Remote access: Tally’s internet collaboration and access features let businesses use the program
whenever and wherever they choose. Companies with multiple sites and distant workers find
this feature particularly useful.
4. Easy access to documents: Tally saves all bills, vouchers, receipts in its document or archive
folder. It gives fast and easy access to documents recently stored.
, 5. Audit tool- Tally goes about as an audit tool as it does customary reviews of organizations. It
completes an intensive check towards the start of the financial year and ensures transactions
are easily being done.
➢ Types of accounts and Rules of accounting:
A. Personal Account- – As the name suggests, Personal Accounts are the ones that are related with
individuals, companies, firms, group of associations etc. These persons could include natural
persons, artificial persons or representative persons.
Examples: Veer’s A/c, Ayan’s A/c, Kapoor Pvt Ltd A/c, Outstanding Wages A/c, Prepaid Expense
A/c etc.
Golden Rule: Debit the Receiver, Credit the Giver
B. Real Account- Real Accounts are the ones that are related with properties, assets or
possessions. These properties can be both physically existing as well as non physical in nature.
Thus, Real Accounts can be of two types: Tangible Real Accounts (which have physical existence)
and Intangible Real accounts (such assets have some value attached to them)
Examples: Machinery A/c, Vehicle A/c, trademarks, patents, goodwill, copyrights etc.
Golden Rule: Debit What Comes In, Credit What Goes Out
C. Nominal Account – Nominal Accounts relate to income, expenses, losses or gains.
Examples: Wages A/c, Salary A/c, Rent A/c etc.
Golden Rule: Debit All Expenses and Losses, Credit All Incomes and Gains
➢ Financial Statements: Financial statements are written records that convey the business
activities and the financial performance of a company. Primary financial statements include the
balance sheet, income statement, statement of cash flow, and statement of changes in equity.
• The balance sheet provides an overview of assets, liabilities, and shareholders’ equity as
a snapshot in time
• The income statement primarily focuses on a company’s revenues and expenses during a
particular period.
• The cash flow statement (CFS) measures how well a company generates cash to pay its
debt obligations, fund its operating expenses, and fund investments.
• The statement of changes in equity records how profits are retained within a company
for future growth or distributed to external parties.
