TallyPrime

Banking in TallyPrime

Posted on by Tally Academy

One of the most crucial and useful features that TallyPrime offers businesses, is its banking capability. Bank-related activities are performed almost on a daily basis by business owners. And so the need to automate and facilitate smooth maintenance of records and processes that are fundamental to effective recording of accounting transactions for timely payments, is extremely significant.

How does TallyPrime help business owners manage their banking activities?

The banking feature in TallyPrime, enables business owners to perform a host of bank-related activities, including payments to parties, bank reconciliation, and cheque management. Usage of this feature enhances and simplifies the banking experience significantly by saving time, reducing errors, improving productivity, and scaling up traceability.

It provides amazing banking capabilities for running your company. You can use its e-payments capability to make timely payments to your parties, manage cheques, reconcile bank statements, and others. TallyPrime’s banking feature supports the following major areas of your business operations.

Banking utilities in TallyPrime

As a business owner, if you use a specific bank to manage your transactions wrt receiving and making payments, TallyPrime offers you a host of utilities including:

  • Auto bank reconciliation
  • Cheque management
  • E-payments
  • Deposit Slip

How to create bank ledger in TallyPrime?

Bank ledgers contain crucial information about a bank that you use to make or receive payments. You can provide information such as Bank name, Account no., IFS code, and address while creating bank ledgers.

Simply go to Gateway of Tally > Create > type or select Ledger and press Enter.

OR

Alt+G (Go To) > Create Master > type or select Ledger and press Enter.

Fill in the required details such as;

  • Name of the bank
  • Bank Accounts (Saving Account (Bank Account), Over Draft account ( Bank OD), Cash Credit account (Bank OCC))
  • Account details – Account holder’s name, A/C number, IFSC, Branch, etc.

How to create bank ledger in TallyPrime

Once you have configured all the details, you can seamlessly perform the required actions based on the preset details you’ve entered for that bank’s ledger.

Auto Bank reconciliation

Reconciling company’s bank books with the banker’s statement is a regular task of accounting. Thus, TallyPrime offers you bank reconciliation capability, which explains the difference between the bank balance shown in an organization’s bank statement, as supplied by the bank, and the corresponding amount shown in the organization’s own [accounting] records at a particular point of time. With TallyPrime, you can:

  • Check correctness of reconciliation
  • Recover reconciliation of any date
  • Auto Bank Reconciliation
  • Reconcile manually

TallyPrime’s auto bank reconciliation enables users to reconcile bank statements with a long list of transactions, in the most simplified manner. All you got to do is simply import the bank statements, and the reconciliation will happen, automatically. Yes, it is that simple!

You need to enable the option provided for auto bank reconciliation in the bank ledger to reconcile the transactions made with that bank.

Learn how to do auto bank reconciliation in TallyPrime:

Cheque management

With TallyPrime, you can manage a host of pre-defined cheque formats, multiple cheque books and powerful cheque register, manage your banking needs effortlessly. You can maintain record of all payment made using cheques or if you have received payments through cheques from your parties. In TallyPrime, you can configure the cheques based on the type of cheque book you use in your business. Configure the cheques as your need and get them printed to suit your business needs.

In order to print a self cheque in TallyPrime, cheque printing has to be configured. Then you have to pass a contra entry by entering Self as the Favouring Name in the Bank Allocation screen.

  • Gateway of Tally > Vouchers > press F4 (Contra). Credit the bank account
  • Enter the amount in the Credit column
  • Press Enter to go to the Bank Allocations screen
  • Press F12(Configure) > set Show favouring name as Yes, to enter Self as the Favouring name.
    The Bank Allocations screen appears as shown below:

Cheque management with TallyPrime

  • Press Ctrl+A to accept and return to the Accounting Voucher Creation screen
  • Debit the cash account. The Accounting Voucher Creation screen appears as shown below:

Cheque management in TallyPrime

  • Press Enter to go to the Cheque Printing screen and Press P (Print) to print the self-cheque.

Post-dated cheque management

Post-dated cheque as the name suggests is the one that the recipient enchases on a future date. Accounting books usually enter such transactions only once the payment is made.

TallyPrime facilitates smooth management of post-dated cheques and the underlying transactions:

  • You can mark an entry as post-dated and specify the date on which the cheque was received/issued
  • The transaction will automatically affect the accounting books on the date of the post-dated cheque
  • You can obtain a comprehensive summary of all transactions involving post-dated cheques, using the Post-dated Summary report
  • You can include post-dated transactions in other accounting reports such as Ledger Vouchers, Group Summary, Outstanding reports, and so on.

Check how to handle cheque management:

Cheque Printing in TallyPrime

This option provided in the Banking menu enables you to print the pending, already printed or the required cheques continuously from a single screen. You can also update the cheque details and have track of cheques to be printed, of a selected or all banks.

In order to print a self cheque in TallyPrime, cheque printing has to be configured. Then you have to pass a contra entry by entering Self as the Favouring Name in the Bank Allocation screen.

  • Gateway of Tally > Vouchers > press F4 (Contra)

OR

Alt+G (Go To) > Create Voucher > press F4 (Contra).

  • Credit the bank account
  • Enter the amount in the Credit column
  • Press Enter to go to the Bank Allocations screen
  • Press F12 (Configure) > set Show favouring name as Yes, to enter Self as the Favouring name

Cheque Printing in TallyPrime

  • Press Ctrl+A to accept and return to the Accounting Voucher Creation screen
  • Debit the cash account. The Accounting Voucher Creation screen appears as shown below:

How to print a cheque in TallyPrime

E-payments

This feature is a unique capability that syncs your bank master, party master and voucher entry into a common platform intimating the payment transaction to the bank. With e-payments, you can

  • Easily record transactions using the electronic mode of fund transfer, including e-Fund Transfer, e-Cheque, and e-Demand Draft/PO
  • Identify any incomplete information or mismatch in beneficiary details
  • You can send completed payment transactions to the bank, with accurate bank details, either during voucher creation or from an intuitive e-Payments report under Banking
  • You can also export either single or multiple transactions at a time, so you will not have to repeat the process of export. In case of DBS (India), you can also open the bank portal directly from the e-Payments report and authorise any pending transactions
  • View and track the status of your e-payment transactions using the e-Payments report

Getting started with e-payments is easy! All you have to do is, contact your bank to enable bulk upload and then enable e-payments in TallyPrime. In fact, recording an e-payment transaction in TallyPrime is also as easy as recording any other transaction. Simply open a payment voucher, select the party and the bank ledgers, and complete the payment transaction. What’s more, you can make e-payments to your parties or the employees on your company’s payroll using the same simple steps.

An e-payment transaction in TallyPrime

Once your e-payment transactions are recorded, the payment instructions are ready to be uploaded to the bank portal. Before uploading, the e-Payments report in TallyPrime will help you in checking the transactions to ensure that the details are complete and error-free. If there are any errors, then you can drill down to the relevant section and update the details.

e-payments report in TallyPrime

You can view and track the status of your e-payment transactions and identify any incomplete information or mismatch in beneficiary details. You can view the e-payments that are sent (or ready to be sent) to the bank. You can also view the bank balance as per the company’s books and compare it with the balance as per the bank.

Gateway of Tally > Banking > e-Payments > press Enter

How to record an e-payment transaction in TallyPrime

Deposit Slip

Any cash which is received by your business, must be deposited in the bank with relevant Cash Deposit Slip attached. You can generate as well as print the cash deposit slip for depositing cash into a bank on any particular date and period.

The Cash Deposit Slip option in the Banking menu is used to generate cash deposit slips, bank-wise. It has all the relevant information which once configured, need not be re-entered:

  • Account Number
  • Account Holder Name
  • Bank Name
  • Branch Name (information is fetched automatically from Bank ledger)
  • Company’s Telephone Number
  • Cash Denomination

To view cash deposit slip report:

  • Gateway of Tally > Banking > Deposit Slip

OR

Alt+G (Go To) > type or select Cash Deposit Slip and press Enter.

  • Select the required Bank account from the list for whose transaction you want to print Cash Deposit Slip and press Enter

How to view cash deposit slip report in TallyPrime

Similarly, you can also generate and print cheque deposit slips for payments received through cheque or demand draft which need to be deposited into the bank.

To View Cheque Deposit Slip

  • Gateway of Tally > Banking > Deposit Slip

OR

Alternatively, Alt+G (Go To) > type or select Cheque Deposit Slip and press Enter.

  • Select the required Bank account from the list for whose transaction you want to print Cheque Deposit Slip and press Enter

How to view cheque deposit slip in TallyPrime

How to Process Payroll | Payroll Process in Easy Steps

Posted on by Tally Academy

The payroll process is an essential activity in an organization with employees. Depending on the structure of the salaries and the prevailing laws and regulations, the calculation of payroll can be either simple or more complex. It is vital to process payroll in a timely and accurate manner. Any discrepancies in the calculations have a direct impact on employee morale and productivity.

The payroll process also involves compliance with the regional laws and regulations. If there are mistakes that are not in compliance with the rules, it could put the organization into legal and financial trouble. An accurate and effective payroll process is essential in any organization whether big or small. Using business management software with capabilities to manage payroll makes the entire process simpler and error-free.

The payroll is the amount of money that the employer pays out to employees for their services. Every organization has a list of add ons and deductions from the basic pay of the employee. These involve allowances, bonuses, taxes etc.What is payroll process?

To have a payroll process, every organization must:

  • Define a pay policy with basic pay, benefits, leave policies, encashment of leave and other related items
  • Define the components that appear on the payslip as per the company’s policy and in compliance with regulations
  • Obtain and record the employee details accurately. This includes the bank account details, tax details etc.
  • Validate the employee inputs
  • Calculate the statutory as well as non-statutory deductions and deduct them to arrive at the gross pay amount
  • Pay the salary amount to the employees through the mode that the company employs. Most often this is done by intimating the bank of the salary amount to be disbursed to each employee account
  • Record the payroll transactions in the accounting system
  • Pay the dues to the appropriate authorities and file returns accurately and before the due dates
  • Physically or digitally (PDF) distribute payslips and other relevant tax documents to the employees.

How to process payroll in easy steps?

The payroll process steps are categorized into the following

  • Pre-payroll process,
  • Payroll calculation process
  • Post-payroll process

Let’s discuss each of these in detail.

Pre-Payroll Process

Defining the payroll policy

Different organizations have their own unique payroll policies. These should be very clearly and unambiguously defined. The first step is to define the basic pay for the different designations in the organization. Leaves and benefits are monetized differently in each organization. There may be deductions for leave taken beyond the given quota. Unused leave may be convertible to money. Some organizations pay for overtime while others do not. Certain companies have the practice of an annual bonus payout. If the bonus is performance-based, the policy should be well defined. The accurate computation of this amount is essential. The payroll policy should be approved by the management of the organization.

Data gathering

The details of an employee are usually collected and recorded at the time of onboarding a new employee. This may include their PAN number, other ID numbers and details.

Attendance and performance data

Payroll also requires the attendance data of the employee. If any bonuses or benefits are due, the relevant department would have to provide the data to payroll. If the employee has earned a performance bonus or a raise, it should be recorded by payroll. In a smaller organization, this data would be easy to gather and compute. In a larger organization, this flow of data to payroll is more challenging. Business management software with an integrated payroll system makes the data flow easier and more accurate.

 Validation

All the data received would have to be validated for accuracy and compliance with the organization’s policies as well as the law. Payroll would have to ensure that no employee who has left employment continues to feature as an active employee for payroll calculation. All the current employees should be included for salary calculation without missing anyone.

Payroll calculation process

This is the payroll process that takes place based on the data input.Payroll is calculated manually or through the use of software to calculate the net pay after factoring in gross income and gross deductions.

Gross income/salary = regular income + allowances if any + one time payment or bonus if any

Gross deduction = regular deductions + statutory deductions + one-time deductions if any

Net pay = Gross income – gross deduction

If the payroll is calculated manually, these values are checked for accuracy and errors if any are corrected.

Post-payroll process

Payroll accounting

The amount of salary disbursed as well as the different components of additions and deductions have to be accounted for. The relevant transactions have to be recorded and entered as per the accounting practices of the organization. If the company uses a standalone payroll software or HR software the data would have to be reentered into the accounting software.

Salary payout

The actual payment of salary to the employees is most often through bank accounts. The organization’s bank account should be sufficiently funded before initiating the salary disbursal payroll process. A salary bank advice statement is generated based on the net pay for each employee along with their account number.

Autogenerated Payroll Voucher in TallyPrime

Reporting

Payslips and tax details are generated and given to the employees physically or digitally. Payroll reports that are required by the management have to be generated and submitted.

Compliance

The statutory deductions that are made from the employees’ salaries have to be paid to the relevant government agencies. The amounts have to be paid and the returns filed well within the due dates.

Process payroll accurately and on time every time

When there are gaps in the payroll data flow, the chance of computational or data entry errors is higher. It is essential that payroll should be error-free and in compliance with the laws and regulations. TallyPrime makes the payroll process quick and easy.

auto-generated-payroll-processing

The benefits of payroll accounting with TallyPrime are:

  • Integration with financial accounting. Tally seamlessly integrates the payroll amounts to the accounting process. There is no necessity for reentering all the payroll data into the accounting software
  • Generates payslips for employees
  • Enables payroll processing with compliance
  • Also tracks the loan details of employees
  • Allows flexibility in user-defined classifications, departments, groups, subgroups and other criteria. It also allows the user to define all the components of payroll such as attendance/time/production units, earning and deduction pay heads.

Revenue Expenditure: Definition, Types & Example

Posted on by Tally Academy

What is revenue expenditure?

Revenue expenditures are short-term expenses that are also known as revenue expenses and operational expenses (OPEX). Revenue expenditure is generally spoken to in relation to fixed assets as it records the expenses which have occurred in connection to a fixed asset. For example, if you have a piece of equipment that requires monthly maintenance then the expense will be termed under revenue expenditure. It involves all costs that are required for the successful running of a business such as salaries for employees and property taxes.  Revenue expenditure is recorded during an accounting period or a single year.

Revenue expenditure types

Revenue expenditure can be divided into two categories; direct expenses and indirect expenses.

Direct expenses

Direct expenses are those costs that are incurred when goods and services are in the process of being produced. The costs that are incurred during the day-to-day operations that take place in the business are also direct expenses. For manufacturing companies, examples of direct expenses include the costs that are incurred for the conversion of raw materials to finished products or goods. Direct expenses also include costs such as electricity used during the production, wages paid to workers, legal expenses, rent, shipping-related costs, and freight charges.

Indirect expenses

Indirect expenses are the second type of revenue expenditure. These types of expenses are usually incurred when the finished goods and services are being sold and distributed. These expenses include taxes, salaries for employees, depreciation, and interest among others. Indirect expenses also include repairs and maintenance costs. Although these costs aren’t directly linked to the finished products, they are required to ensure the proper functioning of the asset which in turn supports the proper functioning of the business.

Example of revenue expenditure

A company called A&J spends 100000 BDT on a machine used for the production of goods. To ensure the proper functioning of the machine, a monthly fee of 1000 BDT is spent. In this example, the revenue expenditure is 1000 BDT which has been spent on the upkeep of the machine on a monthly basis. When the income statement will be prepared, the 1000 BDT will have an entry for that particular month where the upkeep expenditure was made. In case the machine has an issue and needs to be repaired, the cost of repair will also fall under revenue expenditure and will be reflected on the month during which the expenditure was done.

Revenue expenditure Vs. capital expenditure

Revenue expenditure and capital expenditure are often confused for one another which makes understanding their differences even more vital.

Revenue expenditure Capital expenditure
Functionality
Revenue expenditure is the expense that is used to run your business on a daily basis. It includes the costs used to ensure the proper functioning of a fixed asset repair costs, maintenance costs, and costs that are incurred for current operations. It differs from the cost used to acquire or buy an asset. Examples of revenue expenditure include rent, utilities, and office supplies. Capital expenditure, also known as a capital expense or Capex, is the expense that is used to acquire a capital asset. This asset is a long-term asset that is used to improve how the business functions by boosting efficiency. Examples of capital expenditures include vehicles, computer equipment, land, fixtures, software, office buildings, and so on.
Consumption
Revenue expenditure is consumed within a short span of time. For example, the regular upkeep of equipment is done monthly or every quarter depending on the type of equipment used for the production of goods.  Revenue expenditure is a recurring expense that your business needs to spend every month or every few months. It is not a one-time investment. Capital expenditure is consumed over a long period of time until the asset is useful or until the asset has reached its end of life. For example, machinery is used for many years until it is able to function correctly. It is not a recurring expense as your business needs to pay for the cost of the machinery only once.
Reporting
Revenue expenditure is reported in the income statement of your business whenever the expense was incurred. It is not stated in the balance sheet. When it comes to charging revenue expenditures, they are charged immediately in the current period during which you paid for it or after a short period of time. Capital expenditure is reported in the cash flow statement of your business and in the balance sheet. When being reported in the balance sheet, it is stated under fixed assets. Capital expenditure isn’t immediately charged as an expense. Instead, it is charged over a long period of time until you will use it using depreciation. This is a gradual process.
Purpose
The purpose of revenue expenditure is to ensure the assets such as machinery are functioning optimally at all times and so this expenditure comes into the picture after the business has started operating. These expenditures are used to sustain your business. Although these expenditures do not add more capability to the asset, they are used to ensure the asset works as it should. The purpose of capital expenditure is to generate more revenue over time. It involves expanding the business and investing in machinery that is going to give ROI and long-term gain. For example, an expensive machine in a manufacturing plant can be acquired to improve current processes so that it can contribute to revenue generation. These expenditures come into the picture before your business starts to operate.
Cost
When it comes to revenue expenditure, the cost associated with them is comparatively lower than that of capital expenditures. Revenue expenditure isn’t the expense related to investment so it is generally smaller. In certain cases, the expense related to revenue expenditures can be large as long as the cost is a period cost or it is an expense related to the revenue. Your business will pay much more for anything that falls under capital expenditure. Firms usually have a threshold value that marks the distinction between revenue expenditure and capital expenditure. If the expenditure is more than the threshold value then it is considered a capital expenditure, else it might be a  revenue expenditure.

Both revenue expenditure and capital expenditure are equally important

It is wrong to say that either is better than the other because both are required for your business to operate without issues and generate profits. Capital expenditure is critical because it can improve business efficiency. Revenue expenditure is vital as it ensures smooth business operations so there is nothing stopping your business from operating fully. Your business must manage and monitor both these expenditures to ensure you are not over-spending on each. If you do so regularly, you can effectively use strategies for regulating these expenses.

TallyPrime is an ERP accounting software that provides a powerful combination of ERP and accounting software. It can be of help when it comes to both revenue expenditure and capital expenditure. TallyPrime ensures you stay within your budget, know your spending history, and spend wisely. With the help of its robust reports, you get instant insights that can drive your business decisions in the right direction

cost centre in TallyPrime

Using TallyPrime’s cost centre management will help you stay on top of all the spending’s even on little expenses and make confident decision. What’s more? You can set budget and track the variance.

budget in TallyPrime

Generate e-Way bill Instantly Using TallyPrime

Posted on by Tally Academy

Electronic waybill, popularly known as an e-Way bill is a document that needs to be generated for consignment involving the movement of goods beyond the notified value. Most states have a threshold value of 50,000 and a higher threshold value in a few states.

e-Way bill is not a new concept. It has been in place for a few years now and in fact, even before GST with different names. We all know it is a process that requires the supplier/transporter to generate an e-way bill from the portal before transporting or shipping the goods. Once the e-way bill is generated, a unique number is generated for a specific consignment along with an e-way bill document and the supplier can choose to capture it on the invoice.

Today, most businesses generate e-way bills by mentioning the invoice details on the portal either using offline tools (JSON) or direct entry on the portal. While it is a mandatory need, but the effort and time that goes into generating the e-way bills, make the entire process of invoicing to shipping a cumbersome one. Guess, this is a common difficulty that you must have already felt irrespective of how big or small is your business.

To alleviate the difficulty in the current way of generating the e-way bill and to make the entire process simple and seamless, the latest release of TallyPrime comes with an inbuilt connected e-way bill solution that generates e-way bill instantly.

Yes, you read it right! You just need to record an invoice and the e-way bill be generated automatically.

Using TallyPrime’s online connected e-way bill solution, you can instantly generate e-way bills. All you need to do is just record an invoice in your usual way, and TallyPrime will automatically generate an e-way bill and capture the e-way bill number on the invoice.

instant-e-way-bill-in-tallyprime

Tally being one of the recognised ISO certified GSP (GST Suvidha Provider), TallyPrime directly integrates with the e-way portal to seamlessly generate e-way bills for you. It is so simple that you will certainly feel that generating an e-way bill is just the same as invoicing.

Online connected e-way bill features in TallyPrime

Tally’s fully connected e-way bill solution is simple, seamless with zero manual work. Take a look at some of the key features of a connected e-way bill solution.

Generate e-way bill instantly.

Given the compliance need of e-way bills in the process of invoicing and shipment, you no longer need to look at invoicing and e-way bill generation separately. Using TallyPrime, you seamlessly generate an e-way bill online by just recording the invoice. TallyPrime’s full connected solution absorbs the complexity by directly sending the details in prescribed format to the portal and fetches e-way bill details automatically.

e-way bill generated in TallyPrime

Cancel, Extend and update e-way bill online

In some situations, the invoices for which e-way bill is already generated requires to be cancelled. It could be for various reasons such as data entry mistake/order cancelled etc. Also, in an exceptional circumstance like natural calamity, trans-shipment delay, accident, break-down etc. you may want to extend the validity of the e-way bill. No matter what situations you encounter, using TallyPrime, you can cancel, extend ad update e-way bills online without the need to manually perform these actions from the portal.

cancel and extend e-way bill in TallyPrime

Also, for some reason, if you have generated an e-way bill either manually or using any of the available modes (outside TallyPrime), you can auto-fetch such details and capture the e-way bill number on the invoice. Thus, keeping your books up to date.

Flexibility to generate EWB online along with e-Invoice or separately.

By design, the e-invoice system (IRP) integrates with GSTN and e-way bill system. As a result, one can generate an e-invoice along with e-way bill as well. Using TallyPrime’s connected e-way bill solution, you get even more flexibility to do so. You can choose to generate an e-way bill along with an e-invoice or can separately generate only e-way bill as it suits your need.

e-invoice and e-way bill in tallyPrime

Flexibility to generate e-way bill for a single invoice or in bulk from a report

TallyPrime’s connected e-way bill solution comes with the flexibility to generate e-way bill for a single invoice or in bulk. You can generate an e-way bill for a single invoice in the flow of recording the transaction or you can choose to generate e-way bills in bulk (for more than one invoice) from the report. Generating e-way bills, be it a single invoice or bulk is amazingly simpler and faster.

bulk e-way bill in TallyPrime

Enhanced e-way bill reports

TallyPrime’s connected e-way bill solution comes with exclusive reports for e-way bill giving you a complete view of the e-way bill transactions and their status. With the help of the report, you will stay on top of the e-way bill status (Pending/cancelled/generated) and perform various other actions such as cancel, extend, etc. as per your needs.

Supports other modes for e-way bill generation.

In case of exigency cases like unavailability of internet services on a system or due to any other reason, if you wish to use other modes of e-way bill generation such as using offline utility, a direct entry on the portal etc. TallyPrime fully supports these situations.  Not only it supports these circumstances, but also auto-fetches details and updates the e-way bill number on the invoice. Thus, keeping your books up to date.

Offline-mode-e-way-bill

What’s more? The online connected e-way bill solution of TallyPrime comes with an inbuilt alert system to prevent redundancy and ensure that the latest data is shared with the portal, especially in a multi-user environment. Furthermore, the renowned and trusted ‘Prevention, Detection and correction’ capability ensure that the transactions are validated and only the correct and complete details are sent for e-way generation. This way you can prevent errors and work error-free.

Fundamentals of Accounting | Accounting Basics

Posted on by Tally Academy

What is accounting?

To understand the fundamentals of accounting, you must comprehend the definition of accounting.

Accounting is consolidating the financial transactions of a company using a systematic approach. It involves recording, analyzing, reporting, and retrieving financial transactions when required. Accounting is mandatory for legal reasons, taxes, and to understand business health. Accounting ensures that every business transaction is accounted for and if you need to pull out information about any expense you can do so with ease.  Accounting can be divided into two parts; financial accounting and management accounting.

Financial accounting deals with the proper presentation of the transactions in the form of financial statements such as income statements which are shared with people outside the business. Management accounting is a form of accounting whereby the management department receives financial information so they can take vital business decisions to ensure efficient business continuity. Management accounting is part of the internal process as it is used for improving the overall business. It includes information such as the budget.

Key objectives of accounting

The three key objectives of accounting are as follows.

  • Record keeping

The fundamentals of accounting include record keeping which is the primary function of accounting. A business must use standard forms of storing and retaining information so it can be retrieved when the need for it arises. Thorough and accurate storage of records is essential for all transaction-related purposes. A software package such as TallyPrime can be utilized to store every transaction that takes place.

  • Reporting

Financial reporting is a key accounting objective after record keeping. Accounting enables businesses to record and report their financial status at the end of a particular period. It involves putting together transaction details and reports that are necessary to make sense of a certain aspect of a business during a specific time period. Financial statements are results of aggregating financial information of a business and these are useful tools for reporting the financial parts of a business.

  • Analysis

The reports which are based on the business records are analyzed in accounting. When business health needs to be determined then the business reports are analyzed. Analysis in accounting enables accountants to find out ways to improve business efficiency, upgrade processes, and to see where unnecessary expenses are being made. Analysis of financial reporting allows your business to run without problems as it ensures no discrepancies are found.

TallyPrime

Accounting solutions to help you manage your business just the way you want.

Accounting process and steps

The accounting process is one of the fundamentals of accounting. Also known as an accounting cycle, it follows a transaction from the moment it was recorded to when a report is made using various transactions that occurred in a particular period of time. Businesses can use single-entry accounting or double-entry accounting. Firms use accounting software packages such as TallyPrime to automate the accounting process. The benefits include saving time, effort, and money for storage, analysis, and retrieval purposes. Companies can fully automate their accounting or they can leave some aspects to be manually handled.

Steps of the accounting process

There are 8 steps in the accounting process. This is a framework and it can vary from company to company as each company has an individual model that it works with.

  • Step 1: Transaction identification

You need to identify your business transactions first. Every unique transaction needs to be recorded so that it is reflected correctly. All expenses such as costs to acquire, repair, and upgrade need to be accounted for. Additionally, every sale record must be stored so it all sales transactions are in one place.

  • Step 2: Journal creation

This step involves recording each transaction in a journal. You can choose between two types of accounting; cash accounting and accrual accounting. The difference is when the transactions are recorded and stored. Cash accounting is recorded the moment the cash is paid or received. Accrual accounting is when transactions are recorded as they occur.

  • Step 3: General ledger posting

After the entry in the journal, the transaction details need to be reflected in the general ledger. The general ledger allows the categorization of transactions because they are saved according to different accounts. That is, transactions of the same account are recorded in one place and so on. This allows easy monitoring according to particular accounts.

  • Step 4: Trial balance

In this step, the trial balance is calculated. Ideally, the debits must be equal to credits for every account. The trial balance throws light on the balances which have not been adjusted yet in every account. When an unadjusted trial balance is found, it is analyzed in the next step of the accounting cycle

  • Step 5: Worksheet analysis

Adjustment of the various transaction entries is done in this step of the accounting process. First, you need to create a worksheet and make sure that the credits and debits are equal to each other. In the case of accrual accounting, there is an additional step here which is to adjust the entries for revenue and expense matching purposes.

  • Step 6: Journal entries adjustment

This is the stage in the accounting cycle where adjustments need to be made. Once the adjustments have been done, the trial balance is prepared again to ensure that the debits are equal to the credits. Only then can you move on to the next step.

  • Step 7: Financial statements

This step involves the financial statements that are generated after all the entries have been adjusted in the journal. In the majority of the cases, the major financial statements will include the cash flow statement, income statement, and balance sheet. These uncover the truth behind how the business is doing financially and how much profits it is earning.

  • Step 8: Closing

The last step of the accounting cycle is when the books are closed. This holds for the temporary accounts as they are shifted to permanent accounts. For example, the profit and loss statement is transferred to the retained earnings accounts and so on. The closing occurs at the end of the reporting period. After this, the cycle starts again.

Key accounting reports

The critical accounting reports are as follows.

  • Balance sheet

The balance sheet contains information about the total liabilities, assets, and stockholder equity. It gives information about the company’s resources and how these sources are being financed. A balance sheet can help you make better business decisions.

  • Profit and loss statement

The profit and loss statement is also known as P&L and income statement. It shows the revenues and expenses of a business over a period of time. A business is going in the right direction when the profits exceed its losses.

  • Statement of cash flows

This report summarizes the cash that is received or paid. It doesn’t reflect the non-cash transactions that take place such as purchases made on the basis of credit. It contains three parts; investing, operating, and financing. It gives information about cash generation.

How accounting software helps businesses

An accounting software tool can take the complexity out of accounting. Whether the business is small, growing, or enterprise-level, every business needs an accounting software package. TallyPrime is the best example of accounting software that handles everything. All you need to do is record the bills and invoices. TallyPrime will automate the rest. It minimizes human errors, automates management of books of accounts, generates informative customized reports and financial statements, and makes tax returns easy. Additionally, it improves inventory management, ensures tax compliance, streamlines business processes, aids in business forecasting, and accurately generates financial statements. This ensures you know how your business is doing at every step of the way.

Some of the key features of TallyPrime:

  • Record and bookkeeping
  • Invoicing and billing
  • Pre-defined chart of accounts
  • Accounts receivable and payable management
  • Wide range of accounting and financial reports
  • Multi-currency support
  • Sales and Purchase Management
  • Online business reports
  • Inventory Management
  • Taxation support

Get Familiar with TallyPrime

Posted on by Tally Academy

Interactions in TallyPrime follow patterns that help you accomplish tasks with minimal learning. Understand these patterns so that you can try any feature.

Once you install TallyPrime, activate the license, and create a Company, you can start recording your business transactions. To make use of the flexibility of TallyPrime, and enhance your productivity, take a quick look at the interaction experiences and understand the patterns.

Home screen that you see when opening TallyPrime includes the top menu, Go To/Switch To buttons, Gateway of Tally, and buttons on the right hand side. These options aid in finding and opening different ledgers, vouchers and reports that help you accomplish your business tasks. There are multiple ways in which you can reach the desired destination. You can choose the ways you prefer.

Navigation across TallyPrime widely uses Enter key and Escape key. While there are different ways in which you can reach a destination, pressing Enter will take you to the next level of information, and Escape will take you back to the previous level, until you reach Gateway of Tally. The same Escape key will also let you close TallyPrime, with a confirmation. Similarly, you can use different key combinations to achieve what you want. In fact, you can navigate and control TallyPrime completely using a keyboard.

Data entry for recording different types of transactions are made similar to enhance learning, and retention of knowledge. Master creation is made simple by using similar actions wherever possible, and multiple ways to reach the create options.

Reports are presented in a hierarchical manner for easy analysis. While TallyPrime provides a large number of reports, reading and understanding the reports are simplified with similar interactions. When you open a report, summary data is provided for the most relevant report period. From there you can change the report period, presentation format, and so on, up to the value that forms the basis of the report. Consistent interactions make it easier for you to navigate, and memorise the steps.

Sharing data in printed formats, or in electronic file formats through e-mail or export is another facility available by default. You can share individual vouchers, or reports, as well as in bulk, with just a few key presses. Sending payslips to your employees, or reminder letters to your parties are equally simple.

Easy setup enables you to start using TallyPrime for recording your business transactions in a couple of minutes. While there are many features available out-of-the-box, you can decide to start with the minimal set, right away. You can start using the other features as and when you come across a business need. You can explore and use many features as your business grows and diversifies. This facility helps you to start simple, and gradually add more features as needed. Many features can be switched on and switched off as you want. Alternatively, you can start using all the features in the beginning, if needed.

Set up for personal preferences is another flexibility that you get to in order to use the application comfortably. Such configurations can be done independently for every installation of TallyPrime using F12 Configurations. Different types of ledgers and vouchers can have different configurations. In a similar way you can set your preferences for reports, printing, and other data communication options.

Home Screen

When you open TallyPrime, you can see a home screen with different items – a top menu bar with pull down options, the details of the Companies that are open, the Gateway of Tally menu, and a button bar on the right-hand side of the screen.

Gateway of Tally

Top Menu has options to manage your Companies, TallyPrime application, users in your Companies, and your data storage & sharing. This menu and child items in the menu are accessible from any screen in TallyPrime. Help menu has options to launch TallyHelp and to upgrade your application to a newer release of the product. Availability of a newer release is indicated with a red dot notification on the menu name Help. Other options under the Help menu include What’s New,  TallyShop for buying add-ons, Troubleshooting to repair your application and data in case there are issues, Settings to configure your application, TDL & Add-On to manage your extensions/customisations, and an About report that shows the details of your TallyPrime installation and its environment.

Shortcuts form an easy way to interact with TallyPrime. Shortcut/hotkey to access each option in the top menu is shown in bold capital letter that is underlined, or F1. When the shortcut has a single underline, you can just press Alt and the letter key to access the corresponding option. Shortcuts without underline work with the single key press. When you access any of the menu items, a list of options grouped under the menu item opens, and you can access each using the corresponding shortcut or mouse. For example, Alt+K > C will open Company Creation screen.

Tip: You can use just the keyboard to interact with TallyPrime if you prefer so. You can also comfortably use mouse. This is possible on all screens in TallyPrime.

Go To option on the top menu helps you to quickly access any report or feature that you want to use. Any screen that you access using Go To will open on top of the current screen, and closing the screen will take you back to the screen that was open earlier. You can use Alt+G to access Go To. The option Switch To is placed with Go To as a toggle to help you move from the current screen to any other screen. You can use Ctrl+G to access Switch To.

 

How to Download, Install and Activate TallyPrime

Posted on by Tally Academy

You can start using the TallyPrime features in a matter of minutes. All you need to do is download the setup file, install TallyPrime, and activate the license.

If you are a new user, create a company, and start recording your transactions. You can create all ledgers needed to maintain your accounts while recording transactions. In case you want to try TallyPrime before buying it, or you are a student, you can use the Educational version.

If you are using an earlier version of Tally, upgrade to TallyPrime, and continue your business as usual.

 

Download and Install TallyPrime

You can download the application setup from Tally Solutions website. After downloading the setup files, install the application on your computer. Installation steps remain the same regardless of the TallyPrime edition you have purchased.

You can install TallyPrime on any computer with 64-bit edition of Microsoft Windows 7 or later.

  1. Download the setup files.
    1. Go to https://tallysolutions.com/download/.
    2. Click Download.
    3. Select the folder where you want to save the setup.exe file.
    4. Click Save.
  2. Install TallyPrime.
    1. Double-click setup.exe.
    2. Double-click Install New.
      Install new TallyPrime
    3. Configure Application Path, if needed.
      By default, the application will be installed at C:\Program Files\TallyPrime.

      • Click Configure.
      • Double-click Application Path.
      • Click … and change the path as needed. 
        Note: If you are already using Tally.ERP 9, it is recommended that you install TallyPrime in a different folder. This will allow you to use both the products simultaneously, if needed.

        List of configurations for installation of TallyPrime

      • Close the List of Configurations window.
    4. Click Install.
      The application gets installed, and the following window opens.
    5. Click Start TallyPrime to launch TallyPrime.

You can activate the license and start using TallyPrime.

New Users – Activate License

If you have purchased a single user Silver License, you can activate the license on one computer. If you have a multiuser Gold License, you need to activate the license on one computer on the LAN, and configure all other installations using the same license.

Activate New License

  1. Start your TallyPrime. The Welcome to TallyPrime screen appears.
    Activate TallyPrime license
  2. Click Activate New License.
  3. If you have a Single-Site license, enter your Serial Number, Activation Key, and Administrator e-mail ID.Activate TallyPrime license 
    Note: The e-mail ID provided here will be linked to your account, and used for all future communication and licensing activities.
  4. Press Enter to proceed. The Unlock License screen appears.
    Unlock TallyPrime license
  5. Enter the Unlock Key sent to your e-mail ID. 
    Note: If you have not received the unlock key, press F2 (Get Unlock Key).
  6. Press Enter to unlock your license.
    After your license is unlocked, the following message appears.

After activating the license, you can create your first Company and start using TallyPrime for business transactions.

Depending on the size and scale of your business, you can have different setups.

Try it for free | Educational version

If you want to try TallyPrime before you buy, or just want to learn how to use the product, you can use the Educational version for free. You can try all features in the product, just with the restriction that voucher dates are limited to 1, 2 and 31.

  1. Start your TallyPrime. The Welcome to TallyPrime screen appears.
  2. Click Try It For Free.
    Use Educational mode

You can start using TallyPrime in Educational mode. The window title will be in dark green colour and will show EDU under the product name.