5th Online Management Skills Orientation Program (MSOP)
(11th May, 2021 to 29th May, 2021)
Project Topic:
“Understanding the practical aspect of Tally (Accounting Package) in Business”
The Institute of Company Secretaries of India
Eastern India Regional Office
ICSI-EIRC HOUSE
3A, AHIRIPUKUR
1ST LANE
KOLKATA-700019
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DECLARATION
I hereby declare that this project report entitled (Understanding the practical aspect of Tally
(Accounting Package) in Business) is written by me and it is my own effort and that no part has
been plagiarized without citations.
Submitted By:
Name Registration No Signature Date
Gaurav Kothari 520339838/04/2012 24th May 2021
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INTRODUCTION
Tally Solutions Pvt. Ltd. is an Indian multinational company that provides enterprise
resource planning software. It's headquartered in Bengaluru, Karnataka India. The
company reports that its software is used by more than 1.8 Million customers.
History
Tally Solutions, then known as Peutronics, was co-founded in 1986 by Shyam
Sunder Goenka and his son Bharat Goenka and incorporated in 1991. Shyam
Sundar Goenka was running a company that supplied raw materials and machine
parts to plants and textile mills in southern and eastern India. Unable to find software
that could manage his books of accounts, he asked his son, Bharat Goenka, a Maths
graduate to create a software application that would handle financial accounts for his
business. The first version of the accounting software was launched as an MS-DOS
application. It had only basic accounting functions and was named Peutronics
Financial Accountant.
1. In 1999, the company formally changed its name to Tally Solutions.
2. In 2006, Tally launched Tally 8.1, a concurrent multi-lingual version, and
also Tally 9.
3. In 2009, the company released [Link], a business management
solution
4. In 2015, the company launched a program called Vriddhi to certify and
classify its business partners. Also in 2015, Tally Solutions announced the
launch of [Link] Release 5.0 with taxation and compliance features.
5. As of 2016, the company had 1 million customers.
6. In 2016, Tally Solutions was shortlisted as a GST Suvidha Provider to
provide interface between the new Goods and Services Tax (GST) server
and taxpayers, and in 2017, the company launched its updated GST
compliance software.
7. In 2020, the company released TallyPrime.
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BENEFIT OF TALLY ACCOUNTING SOFTWARE
Any business owner understands the importance of maintaining proper books of
account. This practice ensures that finance for the company is always in order and
are correct at all given points of time. Company should always be aware of its
financial positions.
Earlier, most of the businesses were employing manual practice in maintaining
books of account. However, with the advent of modern information technology, this
task can be performed by accounting software. Tally is one such all powerful
accounting software.
Tally accounting software provides a solution to all the problems real businesses
have to encounter. Single software takes care of all tasks required for enterprise
management. Accounting task such as records keeping, accounts receivable and
payable management and bank reconciliation are made simple through tally.
Financial management is also made simpler under Tally software. The software
allows management of finances across multiple locations can handle multiple
currency transactions, manage cash flow and interest payment.
Thus, Tally software is flexible, reliable, secure, easy to use and affordable.
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BASIC MANAGEMENT USAGE OF TALLY
Reports play an important role for businesses to help manage their day-to-day
business operations efficiently. Understanding this need, [Link] provides
many insightful reports. Reports in [Link] is designed to suit all the aspects of
accounting management, inventory management and statutory.
Key accounting reports in Tally Prime are:
1. Balance Sheet in [Link] - The Balance Sheet gives a complete glance
at the financial position of a business. The Balance Sheet in [Link]
shows the assets and liabilities of a company. From the Gateway of Tally
screen, a business owner can access the Balance Sheet. The Balance Sheet
can be configured using F12 configuration in [Link]. [Link] also
offers Schedule VI Balance Sheet for businesses. The Balance Sheet can be
viewed for any given dates. Multiple valuation types are given for defining
stock valuations such as FIFO, LIFO, Average Cost, Average Price and many
more.
2. Profit & Loss Account in [Link] - The Profit & Loss report in
[Link] shows a company’s net profit or loss in each period. By default,
this Tally report considers the period starting from the date when the books
begin to the entry date of the last voucher. The Profit & Loss report in
[Link] can be configured with F12 configuration available within the
report. A business owner can see Schedule VI Profit & Loss account or P&L
statement in a vertical format based on the requirements.
3. Cash Flow/Fund Flow Report in [Link] - The Cash Flow report in
[Link] has been provided to help get a view of cash inflow and outflow
during an accounting period. This report makes it easy for business owners to
understand the cash flow situation for a specific period and helps make
decisions. Similarly, the Fund Flow report in [Link] provides details on
the sources of funds and their net flow status monthly.
4. Ratio Analysis Report in [Link] - The Ratio Analysis report is a
powerful report for financial analysis in [Link]. The multiple ratios in the
report give a clear understanding of the financial position of a business. These
are Debt Equity Ratio, Quick Ratio, Return on Working Capital, Return on
Investment and so on. This is one of the key Tally reports.
5. Outstanding Report in [Link] - A business owner can see receivables
ledger-wise and bill-wise in [Link]. He can see ageing analysis which
can be applied based on due dates or as per the bill dates. Based on the time
that has passed (ageing), a business can accordingly connect with parties or
manage funds to make payments. With the bill wise ageing details, the user
can see and understand the details of bills for which payment is pending.
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Inventory Reports in [Link]
1. Stock Summary Report in [Link] - The Stock Summary report
displays the current position of stocks or stock in hand for a particular date.
From this Tally report, a business owner can view item-wise rates, quantity
and value of stocks available. The Stock Summary report in [Link] also
enables business owners to view gross profit at each item level based on
landing cost and sales price. It also shows the status of stocks available
across various go downs. The user can see the net stock position by
considering purchase and sales orders which are yet to be processed.
2. Stock Ageing Analysis Report in [Link] - This report in [Link]
helps businesses understand their slow-moving goods versus fast moving
goods. This Tally report helps business owners to make decisions based on
procurement of stocks, or whether to liquidate stocks based on their age.
[Link] gives the flexibility to define various periods like 0-30 days, 31-
60 days and so on based on business requirement. Business owners can see
stock valuations as well from within this report.
Statutory Reports in Tally Prime
1) GST Reports in [Link] - In GST, [Link] provides GSTR-1, GSTR-2,
GSTR-3B and e-Way Bill related reports. The GSTR-1 report in [Link] is
designed exactly as the form of GSTR-1 to make life easy for users.
Business owners can see –
i) Details of transactions participating in GSTR-1
ii) Transactions not relevant for returns
iii) Transactions not participating because of incomplete information or
mismatches.
iv) Serial number-wise details of values as mentioned in GSTR-1.
A user can navigate from any value up to the actual transaction itself. Users
can correct transactions under Incomplete/mismatch in the Information
section and allow these transactions to participate in GST returns. This way,
Tally ensures that a user files the most accurate GST return. A similar
experience is given for GSTR-2 and GSTR-3B.
2) E-Way Bill Reports in [Link] - [Link] gives comprehensive e-Way
Bill reports to make life simpler for users.
A user can view –
a) Transactions which have been exported for e-Way Bills.
b) Transactions which are yet to be exported for e-Way Bills.
c) e-Way Bill details of all the transactions for which e-Way Bills have already
been generated.
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Apart from all of the above-mentioned Tally reports, there are many more reports
in [Link] all of which help businesses to access their financial analysis in
the easiest manner and take quick business decisions.
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View Balance Sheet
The Balance Sheet in TallyPrime will help you monitor the health of your
business and take timely decisions for its growth and betterment.
1. Gateway of Tally > Balance Sheet. You can see the Liabilities for your
company on the left and the Assets on the right.
Alternatively, Alt+G (Go To) > type or select Balance Sheet >
press Enter.
2. Press Alt+F5 (Detailed) for a comprehensive view of the Balance
Sheet. You can see the details of your assets (such as cash in the
bank, inventory, vehicles, equipment, buildings, and accounts
receivable) and liabilities (such as taxes, loans, mortgages, and
accounts payable).
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If you have a group company in TallyPrime, you can use the Balance Sheet to
view the consolidated financial data and measure the overall performance of
your business.
Profit & Loss Account
The Profit & Loss A/c is a periodic statement, which shows the net
result of business operations for a specified period. All the expenses
incurred and incomes earned during the reporting period are recorded
here.
The Profit and Loss Account in [Link] displays information based
on the default primary groups. It is updated with every
transaction/voucher that is entered and saved.
View Profit & Loss Account
You can view the Profit & Loss account details in [Link] for a
specified period.
1. Go to Gateway of Tally > Display > Profit & Loss A/c .
2. Click F1 : Detailed to view the Profit & Loss Account in detailed
format. The Profit & Loss Account appears as shown below:
The Profit & Loss Account is generated and updated immediately
from the date of opening of books till the date of last entry.
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3. Press F2: Period to change the period as required.
The Profit & Loss A/c is in horizontal form, by default. You can view
the report in vertical format by enabling the option Show Vertical
Profit & Loss? by clicking F12: Configure . You can view additional
information or toggle to another report using the options available in
the button bar.
4. Click S : Schedule VI in the Schedule VI Profit & Loss A/c, as
shown below:
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Cash Flow in [Link]
Cash Flow is the inflow and outflow of cash during an accounting
period.
A cash flow statement concentrates on the transactions that have a
direct impact on cash. It deals with the inflow and outflow of cash
between two Balance Sheet dates. That is, it explains the changes in
cash position between the two periods. Here the term cash stands for
cash and bank balances.
Cash flow statements can also be used as receipts and payments
statement. This is particularly useful for businesses such as Non Profit
Organizations where receipts and payments statements need to be
generated.
1. Go to Gateway of Tally > Display > Cash/Funds Flow > Cash
Flow .
2. Press Alt+F2 , change the period - From: 1-4-2008 to 30-9-2008.
The Cash flow statement is displayed as shown:
For Quarterly Cash Flow statement:
● Change Period by pressing F2: Period and set the period, e.g.,
1-4-08 to 30-06-2008.
● Select the option Auto Column from the button bar.
● You can also select Quarterly (or Monthly or any other period)
from the list. The Cash Flow screen appears as shown below:
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Ratio Analysis Report
Ratio analysis is a powerful tool for financial analysis. A meaningful analysis of a
financial statement is made possible by the use of ratios.
Ratios are a set of figures compared with another set. The comparison gives an
understanding of the financial position of a business unit. There are a number of
ratios which can be computed from a single set of financial statements. The ratios
to be computed depend on the purpose for which these ratios are required. A
single ratio may sometimes give some information, but to make a comprehensive
analysis, a set of inter-related ratios are required to be analysed.
On this page
View Ratio Analysis Report
The Ratio Analysis Report is divided into two parts, Principal Groups and Principal
Ratios. The Principal Groups are the key figures that give perspective to the
ratios. Principal Ratios relate two pieces of financial data to obtain a comparison
that is meaningful.
● Go to Gateway of Tally > Ratio Analysis. The Ratio Analysis screen is
displayed as shown below:
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Bills Outstanding
The Bills Outstanding report displays the Pending Amount, Due Date and
Overdue days for all accounts maintained using the bill-wise option for the
parties. If you have made a receipt entry against any of the parties, the
Pending Amount will be updated accordingly until the total due is settled.
If you have specified a credit period for your parties or defined the due
dates in the transactions, TallyPrime calculates the overdue details based
on the date when you recorded the sales transaction.
Gateway of Tally > Display More Reports > Statement of
Accounts > Outstandings > Receivables.
Alternatively, Alt+G (Go To) > type Bills Outstanding or Bills
Receivable.
A sample image of the Bills Outstanding report is shown below.
Pending Amount: This the amount pending from your party.
Due on: By default, with bill-wise option enabled, the sales voucher
date is considered as the due date. However, if you have specified a
credit period or due days in the party master, the due date is updated
accordingly once you record a sales transaction.
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Overdue by days: Based on the date of the report, TallyPrime
displays the overdue days from due date, if specified earlier, or the
voucher entry date.
Ledger-wise Bills:
Press F7 (Ledger-wise Bills) to view the receivables bill-by-bill for each
party in the selected group.
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View Stock Summary
Gateway of Tally > Stock Summary.
Alternatively, Alt+G (Go To) > type or select Stock Summary and
press Enter.
By default, the Stock Summary report displays the item-wise summary – list
of stock items with their corresponding closing balance details.
View Stock Ageing Analysis Report
You can view the Ageing Analysis report and also change the Appearance of
Stock Item Names.
1. Gateway of Tally > Display More Reports > Statement of
Inventory > Ageing Analysis.
Alternatively, press Alt+G (Go To) > type or select Ageing Analysis >
and press Enter
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2. Select the group for which Ageing Analysis is required.
View GSTR-1 report
In the report, you get the summary section that gives you a summary of the
vouchers in your books, and the return details. You can view the return
details in two formats – Return Format and Summary Format.
1. Gateway of Tally > Display More Reports > Statutory
Reports > GST > GSTR–1. The report displays the data for a month or
quarter depending on the Periodicity of GSTR-1 set in the Company
GST Details screen.
Alternatively, Alt+G (Go To) > type or search GSTR-
1 or Returns or GST > select and press Enter.
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E-Way Bill
TallyPrime supports the e-Way Bill JSON Preparation Tool, Version
1.0.0219. In TallyPrime, you can enter e-Way Bill details only when such
transactions are recorded with stock items. The provision to enter e-Way Bill
details is not available in accounting invoice mode, and in companies
enabled to Maintain only accounts.
Setup for e-Way Bill
1. Open the company.
2. Press F11 (Feature) > set Enable Goods and Services Tax
(GST) as Yes.
3. In the Company GST Details screen, e-Way Bill options, including the
applicable date, threshold limit, and the value to be considered for the
threshold limit, are provided.
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4. Select the value to be considered for the threshold limit based on your
business requirement.
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Bibliographic References
1. Website - [Link]
2. Website - [Link]
3. Website - [Link]
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