What is Tally? Definition of Tally ERP 9 Software

What is Tally

Tally is an ERP accounting software package used for recording the day-to-day business data of a company. The latest version of Tally is Tally ERP 9.

Tally ERP 9 Software is one acclaimed financial accounting system and inventory management system with a powerful computer.

Tally.ERP 9 is one best accounting software that can be integrated with other business applications such as Sales, finance, Purchasing, Payroll, Inventory, etc.

Tally software stores all the business transactions of each account in detail. Tally ERP 9 follows a double-entry accounting system and hence eliminates and rectifies possible errors.

Features of Tally

Tally ERP 9 supports multi-languages, so it is called multi-lingual tally software. Accounts can be maintained in one language, and reports can be viewed in another language.
You can create and maintain accounts for up to 99,999 companies.
Using the payroll feature, you can automate employee records management.
Tally has the feature of synchronization; the transactions maintained in multiple locations offices can be automatically updated.
Generate consolidated financial statements as per the requirements of the company.
Managing single and multiple groups are essential features of tally.

Versions of Tally

The first version of Tally was Tally 4.5, and it was released in the 1990s. It is an MS-Dos-based software.
The second version of Tally was Tally 5.4, and it was released in 1996. It was a graphic interface version.
The next version of Tally was Tally 6.3, and this Tally version was released in 2001. It is a window-based version, supports printing, and implements VAT (Value Added Tax).
The next version of Tally was Tally 7.2, and it was released in 2005. This version was added with new features of Statutory complimentary version and VAT rules as per state wise.
The next version of Tally was Tally 8.1, and it was developed with a new data structure. This version was added with new features of POS (Point Of Sale) and Payroll.
Due to bugs and errors, a new version of Tally 9 was released in 2006. It has maximum features like Payroll, TDS, FBT, E-TDS filling, etc.
Tally.ERP 9 is the latest version of Tally and was released in 2009. This latest Tally ERP 9 package offering maximum features for small business industries to large business industries. It was also updated with new features of GST (Goods & Services Tax).

Advantages of Tally ERP 9

Tally ERP 9 software is a low cost of ownership, and it can be easily implemented and customize.
Supports multi-operating systems such as Windows & Linux and can be installed on multiple systems.
Tally software utilizes shallow space for installation, and the installation of tally is an easy method.
It is a built-in backup and restores, so the user can easily backup all company's data in a single directory, in a local system disk.
Supports all types of protocols such as HTTP, HTTPS, FTP, SMTP, ODBC, etc.
Supports multi-languages, including 9 Indian languages. The data can be entered in one language, and you can generate invoices, Po’s, delivery notes, etc., in another language.

How to use Tally.ERP 9?

Tally is nothing but accounting in digital format. Maintaining accounts in manual books, we write accounting entries as debit and credit. In Tally, we create entries the same way. So how do we do it, Tally, then?

The entire thing could be pictured as the installation of any machinery in the workplace.

Process 1: Installation : (Buying a machine, we first install it for using it)

Tally software can be purchased and downloaded from the Tally website. We can download a 30-day trial version if we are unsure if we want to use it yet. Tally 9 is for Windows only. We can also use Tally in Educational Mode, which allows you to learn how to use the software without purchasing a license. Some features are restricted in this mode.

Process 2: Navigation : (After installation is complete, we use its hardware supports or software supports to use the machine)

Tally.ERP 9 is designed to be navigated by using the keyboard. While we can click any option we want, everything in Tally has a keyboard shortcut. The Shortcut, as we say, is usually the key displayed next to each available option. Learning how to get around with the keyboard will increase efficiency.

Process 3: Create a Company : (After we get some idea about the machine, we set the program for it to work )

To use Tally, we will first need to create a company in the program. Even when we are not using tally professionally, we still need to create a company using the following steps :

Step 1: In the opening menu, select "Create Company"

Step 2: Enter Company details :

Please enter the company name as it appears on banking records

Enter the company address, statutory compliance, telephone number, and email

Step 3: Turn on "Auto Backup" to ensure that a copy of all your work is saved if something happens to the original.

Step 4: Choose your currency

Step 5: If you are using Tally to manage your accounts, then select "Accounts only" in the Maintain menu and If you are using Tally for inventory management as well, select "Accounts with an inventory."

Step 6: Enter the start of your financial year and the start date for the books

...

Process 4 : Usage: (Now, since we were going to use the machine, it becomes important to first learn about the machine's usage)

Operations

How to use Tally.ERP 9 in Detail

Creating Ledgers

Understanding what ledgers are for: Ledgers in Tally record all of the transactions for that account. One will need to create a ledger for each account that they do business with. Two ledgers are included in Tally by default: "Cash" and "Profit and Loss Account." We can create as many other ledgers as we need. How to?

Step 1: Open Create Ledger window by following the given direction: Gateway of Tally > Account’s Info > Ledger > Create

Step 2: Select the group. Here we will be required to select as to which group the ledger will be assigned to. Choosing the right group is important, as it will affect how numbers and sales are totaled later.

Step 3: Give the ledger a name. Please enter a name for your ledger to know what the ledger contains without having to open it.

Step 4: Enter an opening balance (if any). For example, if you create a ledger for your bank account, this would be the amount currently in it. If you are starting a ledger for the amount owed to a Vendor, you owe would be the starting balance.

Creating Vouchers

Understand the purpose of vouchers: It is a document that contains the details of a financial transaction. These are used for all aspects of a business, from sales to deposits. Tally.ERP 9 comes with several of the most popular types of vouchers pre-configured for usage. How do we create different vouchers? Step 1: Open the vouchers screen using the following direction: Gateway of Tally > Accounting Vouchers

Step 2: In this step, we can choose the voucher we want to create. Here’s is the list :

F4: Contra :	For recording money deposited into or withdrawn from the bank or recording any sum transferred between two accounts in the same company.
F5: Payment	This voucher is used for payments made by the business.
F6: Receipts	For recording any income earned by the company (sales, rent, interest, etc.) and for recording the proceeds received from Sundry debtors.
F7: Journal	For recording all adjustment or due entries such as prepaid expense, accrued income, etc., For recording purchase of assets for recording Input tax reversal entries, reverse charge entries under GST.
F8: Sales	This is used for recording all the sales made by the company
F9: Purchase	This is used for recording all the inventories purchased by the company in the course of business.

Step 3: Enter the required information.
The information needed to complete the voucher will vary depending on the type of voucher we want to create. We will have to typically need to determine which ledger the voucher will be attached to and enter the date and names of any involved parties.

Conclusion

ERP 9 as the benefits of using Tally. ERP 9 as the benefits of using Tally. Tally is the most popular and Highly Effective accounting tool, which makes the life of an accountant easier. Anyone looking to enter the field of accounting or wishing to lead a successful career in accounting must learn Tally. ERP 9 is more for both small and medium-sized businesses. Moreover, simplicity is the driving force that allures the users of financial information to use Tally as the ERP solution for their businesses actively.