The Role of Tally Software in Business Accounting
Technological progress has been accelerating at an exponential rate in recent decades. Many aspects of business operations have changed as a result of it, including accounting. Calculations are crucial to accounting work, and using a computer to process all your information has improved accuracy and reduced error margins considerably. With today’s more efficient tools and specialized accounting software, data entry, computation, and analysis are now swifter. There is no doubt that accountancy tasks like organizing financial information, analyzing data, and assessing economic activity have never been easier. Accounting has become more efficient, thanks to faster software with more complex functions and the introduction of interconnected technology. For example, accounting programs like Tally software make it possible for you as an accountant to track and manage all of your accounts, sales, debts, and every other aspect of the business.
What is Tally Software?
In the accounting world, it is software that manages business finances. It offers a fast and effective way to manage complex accounting processes. Using the customized software, you can increase efficiency in your business operations. The management of finance and accounting is one of the most common challenges companies are facing today.
Business accounting is an integral part of business strategy, so it often requires customization to match that strategy. With this software, you will find solutions to all your accounting needs. There are a number of accounting issues that this software addresses.
As an accountant, you will likely face challenges like cash flow management, taxes management, managing payroll, bookkeeping, managing finances, and performance evaluation. The Tally program package enables users to calculate monetary quantities, accountancy, tax, and GST (Goods and Services Tax) amounts, as well as manage commercial transactions effectively and efficiently.
The data you store in Tally can be accessed as needed and managed in an efficient way at any time. It provides you with convenient access to all of your data. With the help of technology, Tally is able to make data safe and reliable. It is able to send and receive files in all the major protocols.
This means that files can easily be shared between the offices. This accounting software is capable of handling financial management and analysis. As a result, we can get information about receivables turnovers, cash flow statements, activity consolidations, and even branch accounting.
Brief History of Tally Software
Shyam Sunder Goenka was an Indian entrepreneur. He founded and served as Executive Chairman of Tally Solutions, one of India’s first software companies. Before that, he owned a company that supplied raw materials and machine parts to plants and textile mills in India.
He was unable to locate software that could manage his financial records, so he asked his math-educated son, Bharat Goenka, to design a software application that would handle his business’ financial records. Being a graduate of mathematics, Bharat Goenka had an intuitive understanding of developing accounting software.
In 1984, he received an IBM PC from his father, which changed the entire course of his life. Mr. Bharat Goenka has developed a software program with no codes. Initially, the accounting software was offered as an MS-DOS application. The application had only basic accounting functions and was called ‘Peutronics Financial Accountant’.
Together with his father, he went on to founding Peutronics in 1986, which was later renamed Tally in 1988. Today, Bharat Goenka is the Managing Director of Tally Solutions, a company that specializes in technology and innovation that is providing a business tool to small and medium-sized businesses across the globe. According to the company, its business accounting software is used by more than 1.8 million clients.
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The Versions of Tally Software
Tally Software has gone through many transformations over the years, resulting in different versions. This is a brief overview of how Tally has evolved over the years from early versions to the present day.
Initially released in 1990, this software program was a basic accounting tool that could satisfy the needs of small companies. This version of the software required a few basic predefined operating commands in order to function. Only the Microsoft Disk Operating System (MS-DOS) was used for this application.
The 1991 version developed some accounting features but remained pretty much similar to its predecessor. Only a few features were updated.
The Tally4 version was released in 1992. It also supported DOS-based accounting. There are minor differences between this version and those of the other two versions.
Released in 1994 this version has its focuses on accounting functions such as Ledger Classification and Voucher Entry. It provided simple financial statements and a thorough examination of debtors and creditors of the business.
It is an upgraded version of the Tally application released in 1996 and the first one to run on the Windows operating system. With this upgrade, you were able to manage detailed inventory, structure invoices, and integrate accounting and inventory records.
It was released in the same year as an upgraded version of the 5.0 application. This Tally program had the capability of importing data, so that older data formats could be converted into the current format. In addition, the system was a graphic interface version.
This Tally version was released in 2001, and it was developed as an extension of enterprise systems. The Open Database Connection (ODBC) in this version makes it possible to communicate with other systems.
Released in 2005 with new features, this type was much faster than the previous ones, with operations completed more quickly. Additional characteristics like statutory compliance features and different VAT values made it stand out from the other versions. In addition, there are several types of taxes included like Value Added Tax (VAT), Central Sales Tax (CST), Tax Deduction at Source (TDS), Tax Collection at Source (TCS), and Service Tax.
In version 8.1 which was developed in 2006, Tally has a new data structure. It includes a module for Point of Sale (POS) and Payroll. This model has multi-language capabilities and supports10 languages.
An upgrade to the Tally 8.1 version launched the same year, this type includes features that are related to accounting and inventory management. There are 13 languages supported by this version.
Tally ERP 9
Tally ERP9 (Enterprise Resource Planning) was released in 2009. This software offers advanced features such as GST (Goods and Services Tax) calculations, payroll and invoice processing, remote access, multi-user logins, as well as transaction processing. ERP 9 provides better security for the business and makes it more efficient. It allows easy access to data through web browsers and mobile devices. In addition, it simplifies GST returns filing.
Tally Prime replaced Tally ERP 9 in 2020. Compared to its predecessor, Tally Prime is faster and much more advanced. There are more advanced features included in it that make it easier for you to improve different accounting operations, leading to a greater level of productivity.
By using Tally Prime you can access data maintained by your own accountant or an outsourced accountant. The financial statements and reports are generated securely without requiring the assistance of a third party. Using the web browser, you can view multiple reports, including Profit & Loss, Cash/Bank Book, Sales/Purchase Register, and Stock Summary.
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The Advantages of Tally Software
Organizations all over the world use the Tally operating system because of its numerous advantages. Almost all business owners realize how vital it is to maintain proper accounting records. In this manner, the company can ensure its financial situation is always accurate and up-to-date.
Earlier, most businesses maintained accounts manually. Thanks to modern information technology, accounting operating systems are now capable of accomplishing these tasks.
- Data Security
Tally provides a comprehensive information security framework that secures user data by authenticating, authorizing, encrypting, and maintaining its integrity. There are several systems built into Tally ERP that can help businesses replicate their data between multiple locations.
As a result, your data is safe and secure in another location, and your business can continue to function as if it was run from one single computer. Using the Tally Vault feature provides the capability of encrypting and storing customer data.
With accounting software, businesses can resolve all their accounting problems. It also handles their overall management tasks. Using Tally, accounting tasks such as records keeping, accounts receivables and payables management, and bank reconciliation are simplified.
This software simplifies financial management as well. Managing finances across multiple locations and managing multiple currencies is made easier with Tally. Additionally, it can handle cash flow and interest payments.
- Maintain a Budget With Ease
It is the right software used for this purpose. With Tally, companies can use their budgets to plan and manage expenses while staying within their allocated budgets. Business owners with small businesses typically stick to a fixed budget. Tally is designed to help businessmen work in such a manner that expenses are managed by keeping the total budget in mind at all times.
- Payroll Management
Accounting software keeps a track of net deductions, net payments, bonuses, and taxes for the company.
- Tally Access on the Go
Bookkeeping records cannot be carried around with you at all times. The Tally software allows you to conduct business from anywhere in the world. Also, you can access more than two businesses in Tally simultaneously by synchronizing your data.
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The Features of Tally Software
Due to its amazing features, Tally is known as one of the best accountancy applications. Here are some of the accounting and inventory features that it offers:
- It is easy to use, it runs at a high speed, it is functional in real-time, and it has no codes.
- With the payroll feature, you can automate the employee records management process.
- The synchronization feature allows transactions maintained at different locations to automatically be updated.
- With the multilingual feature, you can pass a transaction in one language and print the invoice in another language.
- The multiple currency support feature makes Tally software ideally suited to deal with foreign exchange transactions.
- Tally is equipped with an interest calculation feature. Each transaction is calculated with a different method of calculating interest. As soon as the interest calculation is completed, the user can obtain a detailed report. Through the report, the user can determine the balance amounts that are due.
- Individual bill tracking possibility is another valuable feature of Tally. With this software, users can keep track of the bills for trading and non-trading accounts. A user can easily keep track of new bills, receipts, payments, and adjustments made against those bills.
Each of these features has its own advantages that make it unique to the particular company that uses it. It is now possible for users who benefit from Tally software to complete their work twice more quickly than they previously could.
Tally Prime Highlights
Tally Prime has proven itself to be the best version to date. It enables a cloud-based deployment, which makes it more versatile and scalable than its predecessor. There are more customization capabilities in TallyPrime, as well as better navigation, usability, and accessibility than in Tally ERP 9.
Tally Prime can be accessed remotely, which is by far the biggest difference between it and Tally ERP 9. Tally Prime is a comprehensive business management tool program that is capable of handling all aspects of your business with ease. With this software, you can handle everything from Business Accounting and Taxation, Sales Tax, Payroll, and Finance, to Inventory and Statutory.
A single software package allows the user to manage numerous commercial and business functions. When it comes to managing a business’s human resources, Tally is impressively adept at handling the entire formality and payroll process.
With the latest version of Tally Prime, you can effectively manage the following areas of your business:
Finance and Accounting are critical to all businesses, no matter how big or small. By using Tally’s accounting capabilities, you can plan purchases accurately, manage working capital, and improve cash flow for your business. As a result, you can manage your finances in a more efficient manner, keep track of expenses, deal with exceptions in business processes, and keep an eye on expenditures.
Tally Prime Accounting Module covers:
- Credit management
- Receivables & Payables Management
- Fund and cash flow
- Interest calculation
- Consolidation of companies
- Unlimited Cost & Profit Centers
- Multi-Currency Accounting
Tally Prime allows you to track your inventory at all times and at multiple locations while being up-to-date with your inventory level. As an inventory management system, you can use Tally Prime to record all inventory transactions such as goods receipts, delivery notes, stock transfers, manufacturing journals, and physical stock journals easily and comprehensively.
- Purchase Orders Processing
- Multiple Stock Valuation
- Stock wise summary report
- Grouping and Categorization of Stock Items
- Reorder Levels
- Stock Query from Invoice
- Price List and Discount Management
- Item-Wise & Invoice-Wise Profitability
- Multi-Level Classification of Items
- Sales Registers
The payroll module of Tally Prime offers highly flexible options for customizing methods for salary calculation and frequency of disbursement. Businesses can utilize Tally’s payroll management capabilities to generate payslips, calculate loans and advances, adjust salaries, make ad-hoc payments and deduct charges of various kinds.
It includes the following features:
- Employee pay structure management
- Attendance recording and pay process
- Payslip printing and emailing
- Payroll accounting
- Payroll exception reports
- Employee profile reports
- Employee count
- Passport, Visa, and Contract expiry reports
Career Opportunities for Tally Experts
Tally can be an essential skill to have for jobs such as banking, inventory management, billing, purchase, and sales management. Having a deep understanding of Tally can help you succeed in your field or get hired as a fresher. You can also use it to switch careers or manage your own business.
A bright career in Tally is possible by taking one of the many advanced Tally courses available online. They will definitely help you advance professionally. You can learn how to manage stock, accounts, invoices, purchases, and taxes. Learning Tally is advantageous for anyone who wishes to do accounting, inventory, and taxation work.
It includes Accountants, Tax Consultants, Chartered Accountants, Cost Accountants, and any other professional who needs to use Tally on a regular basis. Additionally, business owners can also benefit from Tally training. It is essential that they understand it so that they can analyze data, and keep track of cash and fund flows, profits, finance, reporting, and other valuable information that supports them in their daily decision-making processes.
Frequently Asked Questions
1. What are the benefits of the Tally Software?
The main benefits for the companies that use this accounting software are as follows:
- Tally ensures data integrity, inventory control, and accounting principles.
- It supports multiple users on a single connection.
- The software takes care of all compliance issues in one place.
- This accounting software is easily integrated with various Microsoft applications.
2. Who can use the Tally Software?
Thousands of business owners, accountants, and decision-makers in small and midsized businesses across different industries use this program to make day-to-day business decisions. This software is one of the leading solutions if you want to manage your financial activities in order to be able to keep track of receivables, funds, variance analysis, consolidation of companies, and branch accounting.
3. How much does the Tally Prime package cost?
The TallyPrime packages are divided into two categories:
- TallyPrime Silver is priced at INR 18,000 (plus GST). It is a single-user edition for standalone PCs.
- TallyPrime Gold is priced at INR 54,000 (plus GST). It is a multi-user edition for multiple PCs in a LAN environment.
The price for the TallyPrime Silver rental package is INR 600 (plus GST) per month and INR 1800 (plus GST) per month for TallyPrime Gold. Rental licenses are suitable for occasional or short-term usage. Businesses that plan to use TallyPrime regularly should consider purchasing a perpetual license. It is less expensive, and once you have purchased it, you have a lifelong license. For the duration of the rental license, you can use all features of TallyPrime, including upgrades and TSS features. Perpetual licenses give you access to TallyPrime for life. In the first year, you will receive free upgrades and TSS features.
Tally is one of the most popular accounting programs used by companies and industries around the world. It is used by small and medium-sized businesses. In addition to being leading business management and GST solution, Tally has a great combination of inbuilt functionality, control, and customization. Recently, Tally has become a mandatory tool for all businesspeople. Without Tally software, organizations and businesses have a difficult time keeping the accounting records they need.
Having a good understanding of Tally software can offer very good career opportunities. If you are proficient in Tally, it is likely that you will be able to change your area of work, move to another department, land lucrative opportunities as a new graduate, change your career path, or start a business. You can succeed as an accountant, data entry operator, accounts assistant, Tally operator, and other similar occupations.