What Is Tally An In-Depth Look At The Accounting Software

INTRODUCTION TO TALLY

Defining tally in context of accounting

Tally is an enterprise resource planning (ERP) accounting software used mainly in small and medium enterprise to record day-to-day business data of a company. It can easily integrate with other business application like sales, payroll etc.

Tally ERP plans or integrate resources or function of an enterprise or business into a single unified system. A business irrespective of the size has to deal with various accounting functions like purchase management, sales management, payroll etc.

Evolution and development of tally software

In 1986, tally solution was introduced with a vision to simplify accounting for businesses using technology. In 1988, tally 5.4 software launched with features like voucher entry, automatic ledger and financial statements making accounting more accessible for business of all sizes.

With the advent of internet and digital technology, tally solution introduced Tally ERP in 2009 which has remote access, real-time data synchronization features. Tally prime is the latest version of the software. It contains user friendly interface, advanced reporting tools, and enhanced data security to cater the evolving needs of the business in digital age.

KEY FEATURE OF TALLY

Overview of tally accounting capabilities

Accounting is the backbone of any business for that need of reliable accounting solution is must. While choosing a reliable solution, let’s discuss some key feature of tally accounting capabilities:

• Generating invoice/bills: To prepare invoice and do daily task related to account and finance with tax compliances
• Manage payrolls: to calculate and process the payments to be made to employees and be respond ready to all legal and tax commitment without errors
• Prepare budget and forecasting target: To calculate and interpret finance performance for the current year and also helps to estimate the budget of the projected year using the trended data
• Inventory management: To control the availability and movement of products and avoid all sorts of delivery issue such as overstocking or under stocking
• Assets Management: To manage financial data accurately by maintaining history of audits, costs records, calculating depreciations, allocating resources to departments etc.
• Tax Management: To manage all tax compliance requirements with automatic calculation on tax or sales and payments and payment on employee payroll like EPF etc. and direct taxation laws such as TDS (Tax Deducted at Source)

Integration of financial management and inventory

Tally offer capability to integrate with third party business software’s and productivity apps and services such as payment gateways, sales software, business intelligence system, project management tools and manage financial data also tally makes it possible to control the availability and movement of products and avoid all sort of issue related to stock.

UNDERSTANDING TALLY INTERFACE

Navigating tally’s user friendly dashboard

Dashboard in tally provides all important information related to your business on a single interface, which enables better data analysis and understanding. It is a bird’s eye view of your business health. The dashboard provides you with the tiles that in part and overview of your sales and purchase trends along with trading details, assets and liabilities, cash in and outflow etc. and also you have the flexibility to add all remove tiles from the dashboard.

Overview of menu options and modules

The display menu in Tally ERP provides access to all financial reports in tally. Each report is future grouped into books and statement:

• Trial balance: It display a collection of main groups and their closing balances
• Stock summary: Statement of stock in-hand on a particular date and updated every transaction to provide current stock
• Day book: Contains all vouchers for the day including inventory vouchers
• List of account: Gives the tree structures of all your masters head namely groups, ledgers, stock item, cost centre, currencies and so on.
• Exception reports tracks the unusual transactions or balances.

TALLY FOR FINANCIAL ACCOUNTING

Recording and managing financial transactions

Financial accounting is the main branch of accounting, responsible for tracking and reporting financial transaction of the company. It follows the process of recording, summarizing, analysis and reporting of all the financial transaction of the business for a given period.

General financial statement and reports

In general financial statements; quarterly and annual financial statements are put together, which make available to shareholders and the investing public to show company’s financial performance.

There are four basic financial statements

• Income statement or profit and loss statement
• Balance sheet
• Cash flow statement (CFS)
• Statement of retaining earnings (cumulative net earnings of profits of a company after accounting for dividend payments).

INVENTORY MANAGEMENT WITH TALLY

Track stock levels and movement

Inventory management is all about maintaining a balance between overstocking and under stocking. Overstocking leads to cash flow blockage and additional cost for managing access stock; while under stocking leads to loss of sale due to none-availability of stock at right time. So, tracking stock levels at the right time and keeping inventory handling costs at low is important in inventory management.

Handling purchase and sales orders

Order processing includes both purchase order processing and sales order processing. In Tally ERP 9 order processing is linked to inventory. This allows the tracking of sales or purchase order position for stock item. By this, you can track the arrival of goods order and whether the ordered stock items are delivering on time.

TALLY IN BUSINESS OPERATION

Role of tally in small and medium enterprises (SMEs)

Tally software design for small businesses and assist owner to manage ever accept of growing company, including sales, customer relationship, financial and operations

Tally ERP makes it easy for small businesses to manage their accounts efficiently from recording transaction to generating invoices and managing cash flow, the software automates manual task of bookkeeping and reduces the chance of errors.

Benefit of Tally in streamlining business processes

SEMs often lacks of structure and streamlined processes to manage various aspect of business. Tally ERP system provide crucial information for decision making, streamlined accounting processes, efficient inventory management capabilities, and seamless integration with other businesses system makes it a valuable asset for any small business owner.

AUTOMATION AND EFFICIENCY

• How Tally automates repetitive accounting tasks
  
  Accounting manages and records the cash flow from end to end. In isolated accounting software data has to be transferred or re-entered from one software to other. This creates unnecessary manual steps in the process. Tally automates all the interlinked process of financial accounting such as inventory, payroll and accounting.
• Enhancing accuracy and reducing manual errors
  
  Tally simplifies business operations and unites the entire department through seamless integration. Automation through tally speeds up the paper work in the company making operation quicker and more efficient. All the modules are fully integrated, data flows easily across the software and there is no necessity for repeated data entry from one module to another. By using tally you can elevate your business operation to a higher level of efficiency and accuracy.

TALLY FOR TAX COMPLIANCE

CUSTOMIZATION AND SCALABILITY

TALLY IN THE CLOUD

Overview of Tally on-cloud services

Tally on-cloud services provide a virtual space for cloud accounting or online accounting, where you can access your accounting software not on your computer but remotely. Simply install the Tally software on a cloud system or virtual space provided and access your business application and data remotely.

Advantages of cloud-based tally solutions

• It provides remote access, anywhere at any-time to business data
• It ensure tight security and encryption, and automatic updates of software
• It saves times and additional expenses by not setting up the required infrastructure
• It is flexible as per your business requirements
• It has the feature of secure data exchange and helps the communicate with respective stakeholders seamlessly and work collaboratively.

LEARNING TALLY RESOURCES AND TRAINING

• Tally certification programs
  
  Tally certification programs equip professionals with the skills to manage data from recording transactions to generating financial statements.
  Tally certification enable a person to pursue career as accountants, auditors or financial analyst also makes them proficient in data entry, ledger management and financial reporting.
• Online tutorial and learning material
  
  Tally courses accessed and learnt from anywhere and everywhere through Tally education content app. Tally designed course module to provide orderly and optimal online learning experience and online assessment availability with the courses.

TALLY UPDATES AND FUTURE TRENDS

Keeping up with tally’s evolving features

• Tally adopted new and updated technology and legal compliance which enable businesses to focus on profitability and scalability
• Integration accounting: dynamic and changing business environment demands organization to ensure periodic reporting for smart and fast decision making in business
• Seamless GST compliance: tally ensure that GST return in synchronization with book of account
• Smart inventory management: tally has efficient and effective inventory management features like stock tracking, stock management, sales and purchase order management, stock summary, stock query which makes it convenient to manage stocks
• Enhance data privacy and security
• Tally has multilevel security system which ensure the no data during the exchange process is leaked at any given points
• Tally provide secure transmission through enhanced version of the industry recognized triple data algorithm, before the transfer process is initiated
• For secure data exchange, both user of system must authorize the synchronization configuration before data exchange.

Anticipated trends in accounting software

With the technological advancement and changing law, it is crucial to adopt and evolve to stay ahead of the curve

Artificial intelligence and automation integration streamlined repetitive and time consuming task such as data entry, report generation etc. Cloud based accounting will enables accountants to work from anywhere collaborate with clients in real-time and access data securely from the cloud. Cyber security and data protection: with advent of AI and cloud based accounting, cyber security and data protection will be top priority for businesses.

CONCLUSION: EMPOWERING BUSINESSES WITH TALLY’S VERSATILITY