What is Tally?

Tally is indeed an ERP accounting software application used to keep track of a company’s daily business operations. Tally ERP 9 is the most recent version of Tally. Tally ERP 9 is one of the most well-liked accounting applications in India. It is comprehensive business software intended for small and medium-sized enterprises. It is a GST programme that combines function, control, and internal customizability in the best way possible.

The greatest accounting software is ERP 9. Other business programmes like inventory, finance, sales, employment, purchasing, etc. can interact with this software. Each account’s detailed business transactions are stored using Tally software. Calculations are now easy thanks to Tally. Tally is now used by all enterprises.

Tally is both time and money efficient. It also makes sure that business management is accurate. It allows for the digitalization of checks and signatures, keeping up with the times. The owner of a small shop may effectively manage financial transactions, keep track of customer invoices, and manage his store using Tally ERP 9 Training.

Why is tally used?

Organizations are shifting toward simpler and easier methods in the modern environment. Organizations find Tally’s accounting solutions to be comfier and more successful when Tally is supplying them with them. Tally’s many ingrained purposes and applications provide a way to resolve management and accounting snags.

  • Simple accounting

It’s the most well-liked and frequently used aspect of Tally. There are six various methods that businesses can use in Tally’s accounting feature: credit, debit, contra, reverse log, payments, receipts, sales, purchases, and memoranda.

  • Simple banking

The most recent Tally versions, including ERP 9, now include banking as a new function. This allows users to create deposit slips and obtain payment instructions using the banking feature. It also provides the customer with a solution for a challenging activity like bank reconciliation. It has mostly been used to reconcile bank statements with the books of accounts.

  • Analyzing a ratio with ease

The ratio computation that shows the ratio of several clients is made easier by ratio analysis. The user can use it to examine a certain business’s earnings and make decisions about the next steps. The qualities like fast ratio are the crucial ones among the displayed ratios. Ratio analysis enables the user to make quick, precise conclusions.

  • Simple Inventory

A well-maintained inventory aids in lowering loss and wastage if the firm engages in production. The user can categorise the inventories in further detail with regard to groupings, units, tariffs, stock items, and go-downs.

  • Billing and taxation are simple.

Tally software assists in handling taxes such as VAT, federal taxes, excise tax, customs, and service tax in addition to assisting in calculating tax amounts.

  • Uses that are versatile

Tally is useful for a wide range of jobs and is relevant to all monetary and inventory-related professions. It is suitable for payroll, attendance tracking, employee records, workgroup and category tracking, pay heads, and of course employee records.

  • Effective accounting and financial tools:

A tally is a versatile tool that may be applied to a variety of accounting and software-related tasks. A tally is a strong tool that may be used for accounting management and financial analysis.

Tally versions: 

  • The original Tally version was 4.5. It came out in 1990. This programme is built using MS-Dos.
  • The second iteration of Tally was version 5.4. It came out in 1996. It had a graphical user interface.
  • The third iteration of Tally was Tally 6.3. It was made public in 2001. This version operated on Windows. It facilitates printing and using VAT (Value Added Tax).
  • The following version of Tally was 7.2. It was made public in 2005. It was updated with the Statutory Complimentary Version’s additional features and the state-specific VAT regulations.
  • The following version of Tally was 8.1. It was made using a fresh data structure. It was included with new Point of Sales (POS) & payroll functions.
  • The following model was Tally 9. It came out in 2006. Bugs and errors forced the release of this version. Most functionality, including TDS, FBT, Payroll, and ETDS filing, are included in this edition.
  • The most recent version of Tally is ERP 9. In 2009, it was made public. Most functions are available for both small and large business sectors in the Tally ERP 9 software. New GST (Goods and Services Tax) features are also included.

Characteristics of Tally

  • Given that it supports several languages, Tally ERP 9 is indeed a multilingual accounting programme. Reports can be viewed in another language while accounts can be maintained in one.
  • In your account, you may add more than 99,999 companies.
  • Payroll’s automated administration of employee records management capabilities.
  • With the help of Tally’s synchronisation feature, transactions from various offices can be instantly updated.
  • Create consolidated financial statements in accordance with the requirements of the business.
  • It is essential that Tally be able to manage both single and large groups.

How is Tally ERP 9 used?

Tally is essentially just online banking. To keep records of our accounts, you can record accounting transactions like debits and credits in manual books. Windows software is used to compute Indian VAT, service tax, and TDS.

  • Installation

You can purchase & install Tally software from the Tally website. You can obtain a 30-day edition if you aren’t quite certain that you want to utilise it. Windows is the only platform that Tally ERP 9 is compatible with. To learn more about Tally ERP 9 and to use the programme without needing a licence, users can use Tally in Education Mode. However, several functionalities are disabled in this mode.

  • Navigation

The keyboard serves as the main method of navigation for Tally users in ERP 9. Tally does have a keyboard for almost everything, despite the fact that people can opt for an alternative. The shortcuts are the key that appears under each alternative resource. You can use the keyboard more effectively if you become familiar with it.

  • Establishing a company

You must create a firm in Tally before you can begin utilising it. You must set up a business even if you’re not using Tally for commercial purposes in order to use Tally ERP 9.

  • Developing ledgers

Tally ledgers record all transactions for a certain account. You must create a ledger for each account you use to conduct business. Two ledgers are included by default with Tally ERP, Cash & Profit and loss Account.

Features of Tally:

  • Simplicity:

Tally.ERP9 accounting is simple to set up and operate, and it is made to make the complicated day-to-day tasks involved in an organisation run more smoothly. It supports simple keyboard operations and makes use of basic English and accounting skills necessary.

  • Version for auditors:

Tally.ERP9 offers a unique Auditors’ Edition that offers auditing & compliance capabilities only for Chartered Accountants.

  • Remote entry:

Tally.ERP9 offers its consumers the ability to access data remotely at any time and from any location.

  • Power:

Tally users of ERP9 are able to manage an unlimited number of organisations and degrees of classification and grouping. Even drill-down capabilities from the reporting level to the process level are available.

  • Without codes, accounting:

Tally.ERP9 permits accounting using standard names without the use of account codes.

  • Instantaneous processing

Instant reports and statements are made possible by real-time processing, which enables fast posting & updating of accounts books as soon as transactions are entered. Additionally, it supports a multi-user, real-time environment.

  • Simultaneous multilingualism:

Users using Tally.ERP9 have the unique option of managing their finances in any Indian language, seeing it in a different language, and printing them in still another Indian language.

  • Command Center:

Functions as a conduit between the user & Tally.ERP9, which is placed at several locations, allows users to centrally configure & manage any Site or User associated with an account.

  • Speed:

Instantaneous and accurate report generation is a feature of ERP9 that helps management make timely and informed decisions for the organization’s overall productivity and growth.

  • Flexibility:

In addition to offering the ability to switch between Accounts and or Inventory reports from the same company or between firms, ERP9 has a flexible option that generates immediate reports for any given time period, whether a month or a year or at any specific point in time.

Benefits of the Tally software

  • Business growth is simple

Vigorous monitoring is necessary for a growing business. Due to this, the business makes money when it can and loses when it must. Once the causes of business losses are understood, expanding and improving the company is a relatively simple process. Using Tally software makes it simple to keep track of inventory, payroll, banking, and other tasks. One should obtain a report before making any company decisions because it provides a bird’s eye view of every aspect of the account.

  • GST remedy

Since the introduction of the GST into our tax structure, there has always been hesitation on the part of others to fill out or return their GST. All of the questions answers are contained in Tally, which also recognises and fixes problems. Generating invoices and filing GST returns, it benefits us. Since the GST system was implemented for businesses in India in 2016–17, it has been fairly successful. In the beginning, it was challenging for people to comprehend GST.

  • Easily manages data

To manage customer data, Tally software eliminates the need for additional applications. All client data can be kept in one location, and modifications can be made anywhere. Tally also readily adopts original trading strategies. Before making market decisions, one should obtain a report so they can manage their work, such as a bird’s eye perspective of any portion of the account in detail.

  • Decisions and reports

Tally software can examine reports on trade arrears, stock ageing analysis, and cost projections. These reports enable the owner to accelerate the expansion of the company and improve business decisions for sustaining a strong pace.

  • Reconciling the banks

In addition to producing cash deposit slips, printing checks, and many other tasks linked to the bank, Tally also keeps track of post-dated check records. Tally has the ability to automatically correct banking mistakes that are made by people. This Tally feature is helpful, efficient, and error-free.

  • Ability to move

You cannot always carry your books’ accounts with you. Tally software allows you to access your company from any part of the world. Regardless of where you’re from or where your company is. By synchronising your data with the Tally programme, you can access over two enterprises at once.

  • Protected data

Any business would never want the other competitor’s business to use its data programme. The Tally software preserves and safeguards the company’s data by preventing access to third parties.

  • Speed up the audits

Manually preparing the balance sheet, profit and loss statement, or trial balance takes additional time. which ultimately takes up more of our time while creating the final report. By selecting certain transactions and monitoring their progress by looking at each voucher in the Tally programme, the accounting work is made simple.

  • Reduces time

You are aware that manually recording the accounts frequently takes a lot of time and increases the likelihood of errors. By using Tally, you can prevent making incorrect data records and losing valuable time.

Limitations of Tally

  • User unfriendly

Tally is not an intuitive piece of software. It does not make it easier for you to utilise. Even though the software is straightforward, not everyone can use it right away without some training in accounting. Because of this, it is unable to instruct users in a straightforward manner on how to utilize it when they are unfamiliar with accounting.

  • Single-window applications:

The same transaction page cannot be opened on numerous machines. As a result, it takes more time than comparable applications that enable you to do work on multiple ledgers concurrently. It is challenging for the users to browse multiple items in Tally at once because only one ledger may be opened at a time.

  • No useful upgrades: 

Although updated models of Tally have been released, the improvements are minimal. The difference between Tally 4.5 and Tally 9 ERP is barely discernible. One of the greatest limitations of this software is that if you have an older version of Tally, you cannot upgrade it with new capabilities included in the most recent version.

  • Not the best choice for multi-branch:

If you have several branches, running Tally becomes prohibitively expensive. Servers and LAN must be purchased together. The sync isn’t really real-time furthermore. If the accountant is not present in one of the branches to manually sync, it needs to be done, as well as if the data is not updated.