Comprehensive Guide to Computerized Accounting with Tally

Posted on Jun 4, 2024 in Computers

Features of Computerized Accounting

Simple and Integrated: Automates and integrates business activities like sales, finance, purchase, inventory, and manufacturing, providing accurate and up-to-date information.

Accuracy & Speed: Utilizes customized templates for fast and accurate data entry, automatically generating reports.

Scalability: Adapts to changing business volumes, accommodating transaction growth.

Instant Reporting: Generates real-time, high-quality reports due to speed and accuracy.

Security: Offers enhanced data confidentiality compared to traditional systems.

Quick Decision Making: Provides real-time, comprehensive MIS reports for informed decisions.

Workbook vs. Worksheet

Excel Workbook: Analogous to a book containing multiple pages (worksheets).

Excel Worksheet: A single page within a workbook, similar to a page in a book.

Key Differences:

  • Linking worksheets within a workbook is easier than linking separate workbooks.
  • Data manipulation occurs within worksheets, while the workbook acts as a container.
  • Multiple worksheets can be added to a workbook (limited by system memory), but adding workbooks within each other is not straightforward.
  • Workbooks hold the entire dataset, while worksheets contain specific data subsets.

Chart Elements

1. Axis Title

Describes the data represented on an axis (horizontal or vertical), displaying horizontally.

2. Chart Title

Displayed at the top, providing context and information about the chart.

3. Legend

Represents the data on the Y-axis (graph series), typically metrics from grid report columns, usually appearing as a box beside the graph.

4. Gridlines

Horizontal and vertical lines separating cells in a worksheet, enhancing readability and navigation.

5. Data Labels

Display source data directly on the chart, often from source data but can include other values.

Technological Advantages of Tally

Data Reliability

Robust system ensuring data integrity even during power outages. Periodic data checks guarantee reliability.

Data Security

Data integrity checks prevent unauthorized modifications. Binary encoding and ODBC layer access enhance security.

Tally Audit

Administrators can review and modify entries made by authorized users, with tracked changes and timestamps.

Tally Vault

Data encryption using DES safeguards data with a password-protected vault.

Tally Screen Components

Title Bar: Displays the Tally software version.

Horizontal Button Bar: Provides access to settings, support, language, control center, and help.

Close Button: Closes the Tally window (Ctrl+M shortcut).

Task Bar: Displays the current task in Tally ERP 9.

Gateway of Tally: Main menu for navigation (screens, reports).

Info Panel: Shows license, configuration, and version details.

Calculation Area: Dedicated space for calculations.

Buttons Tool Bar: Context-sensitive buttons for current tasks.

Date and Time: Displays the current date and time.

Gateway F11 Features in Tally

Integration and Reporting

  • Integrate Accounts and Inventory: Links inventory data to financial statements, enabling stock balance drill-down.
  • Income/Expense Statement Instead of P&L: Displays Income & Expenses A/c instead of Profit & Loss A/c, suitable for non-trading accounts.
  • Allow Multi-Currency: Enables transactions in multiple currencies.

Outstanding Management

  • Maintain Bill-wise Details: Tracks outstanding balances bill-by-bill for debtors and creditors.
  • Activate Interest Calculation: Automates interest calculation on outstanding balances based on specified rates and methods.
  • Use Advanced Parameters: Allows for flexible interest rate management.

Cost/Profit Centers Management

  • Maintain Payroll: Enables payroll management within Tally.
  • Maintain Cost Centers: Allows cost allocation to specific units within the organization.
  • Use Cost Center for Job Costing: Tracks income and expenses for individual projects.
  • More than ONE Payroll/Cost Category: Enables creation of multiple payroll or cost categories.
  • Use Pre-defined Cost Centre Allocations during Entry: Allows pre-defined cost center allocations for transactions.
  • Show Opening Balance for Revenue Items in Reports: Displays opening balances for cost centers in reports.

Invoicing

  • Allow Invoicing: Enables creation of sales and purchase vouchers in invoice format, automating tax calculations.
  • Enter Purchases in Invoice Format: Enables invoice format for purchase entries.
  • Use Debit/Credit Notes: Activates debit and credit note voucher types.
  • Use Invoice Mode for Credit Notes: Enables creation of credit notes in invoice format.

Creating a New Company in Tally

Step 1: Access Company Creation

Navigate to: Gateway of Tally > Company Info > Create Company.

Step 2: Company Creation Window

The company creation window will appear.

Step 3: Update Company Details

  1. Directory: Specify the data storage path (default: C:\Users\Public\Tally.ERP9\Data).
  2. Name: Enter the company name.

Primary Mailing Details

  1. Mailing Name: Defaults to the company name but can be modified.
  2. Address: Enter the complete company address.
  3. Statutory Compliance for: Select the country (e.g., India).
  4. State: Choose the relevant state.
  5. Pin Code: Enter the company’s pin code.

Contact Details

  1. Telephone No: Enter the company’s landline/telephone number.
  2. E-Mail: Provide the company’s email address.
  3. Mobile No: Enter the company’s mobile number.
  4. Fax no: Provide the company’s fax number (if applicable).
  5. Website: Enter the company’s official website address.

Books and Financial Year Details

  1. Financial Year From: Specify the financial year’s start date (default: April 1st for Indian companies).
  2. Books Beginning from: Enter the date from which the books begin.

Security Control

  1. Tally Vault Password: Enable and set a password to encrypt company data.
  2. Use Security Control: Restrict data access to authorized users.

Base Currency Information

  1. Base Currency Symbol: Select the currency symbol (e.g., INR).
  2. Formal Name: Enter the formal currency name (e.g., India Rupees).