Tally is a popular accounting and ERP software used by small and mid-sized businesses across India. It provides comprehensive functionalities like inventory management, invoicing, payroll, and taxation. In this guide, we will explore the key features of Tally and how to use it for business accounting and financial management.
Introduction to Tally Software
Tally is business management software developed by Tally Solutions Pvt Ltd based in Bangalore, India. Some key capabilities include:
- Maintaining accounts and bookkeeping
- Generating invoices and credit notes
- Payroll processing and income tax
- Inventory, sales orders and purchase management
- Bank reconciliation and related accounting
- Preparing trial balance, P&L, and balance sheets
- GST-ready with compliance features
It uses a proprietary language Tally Definition Language (TDL).
Benefits of Using Tally
Some of the major benefits of Tally accounting software are:
- Designed for Indian business needs like GST
- Simple user interface for easy adoption
- Detailed custom reports generation
- Point and Tally interface for fast entry
- Multi-user support with access controls
- Remote access available through Tally.Net
- Quick books export for financial consolidation
- Data integrity and security features
- Scalable pricing for small to enterprise needs
- Large ecosystem of Tally partners
Overall, it provides a complete financial management system.
Key Modules and Features
Let's look at some of the main modules and capabilities of Tally:
Accounting and Finance
- Chart of accounts and double-entry bookkeeping
- Banking and reconciliation
- Budgeting and cost centers
- Extract P&L, trial balance, balance sheets
- Statutory compliance features
Inventory Management
- Physical stock management with serial/batch tracking
- Order processing and invoicing
- Price lists, discounting, and credit notes
- Supplier and warehouse management
- Inventory valuation methods like LIFO, FIFO etc.
Taxation and Compliance
- Calculate GST, VAT, service tax, TDS automatically
- All major tax form generation
- Input credit management
- Statutory printing like GSTR-1, e-TDS returns
Reporting
- Pre-built reports for P&L, balance sheet etc.
- Drill-down reports for details
- Graphical analysis of financials
- Export reports in Excel, PDF formats
Payroll and HR
- Salary and leave management
- Auto-calculate PF, ESI, gratuity etc.
- Generate Form 16, Form 12BA
- Flexible payroll processing
Getting Started Guide
Follow these steps to begin using Tally for your business:
1. Activate and Install: Purchase appropriate Tally license and activate using activation code. Install Tally locally or use cloud.
2. Configure Company: Create a company, set required details like financial year, industry etc.
3. Define Ledgers: Define ledger accounts for assets, liabilities, expenses, incomes, and more.
4. Enable Features: Activate required modules and enter setup details for inventory, payroll etc.
5. Record Transactions: Start recording business vouchers, invoices, payroll entries. Autosave and reuse features available.
6. Generate Reports: Use pre-defined reports or customize them. Schedule and email key reports.
7. Back Up Data: Regularly back up company data and maintain copies.
Conclusion
Tally provides a comprehensive accounting and financial management solution for SMBs. With its intuitive interface, detailed reports, tax compliance capabilities, and modular structure, it can scale from small company accounting to enterprise ERP needs. Taking time to understand its features and configure as per your business requirements is key to harnessing its potential. Tally's wide adoption makes it easy to find supporting resources and talent.
