Tally is generally known to be an Accounting software for small & medium level businesses. Tally does all the functions of accounting for businesses. This is the visionary of most of the persons who know about Tally. But Tally does much more than what you can imagine of doing. Tally is not just an Accounting- software. After the release of Tally ERP version, the functioning & capability of Tally is much broader to a great extent.
For example (Bassam Infotech give this example often to various people) did you know that you can maintain Employees information in Tally? Right from his/her name to everything about duties, work, profile, groups and so on. This could be a great feature if a business has a greater number of employees working under the business.
So exactly What is Tally?
Now along with the introduction of GST (Goods & Services Tax) in India, Tally will be used by more people than before. The reason for this is for most of the general public, Tally is a go-to software for accounting and that is because of the simplicity of the Tally itself.
Bassam Infotech is using Tally since the beginning. Since then, we have not found any other simpler version of softwares than Tally for the purpose of Accounting. We know why you have the question, “What is Tally?”. You must be having a great deal of Questions regarding Tally. For your ease, we have broken down the whole explanation into different parts.
Well, Tally is a complete ERP- Enterprise Resource Planning system with an excellent grip in Accounting features. whilst it has many more core features that a business requires but its efficiency in accounting is something to be truly appreciated. Therefore Tally is known more for Accounting rather than any other of its features.
If we have to suggest a single software for a business functions, even if the business is just starting. Tally is the one which Bassam Infotech would recommend. The reason for this recommendation is because Tally does all the functions that a business requires at the time of starting-up. Not only businesses, you can also use Tally for your personal Accounting too. For example, let’s say, you are a salaried person and have investments in shares, mutual funds and some other real estate investments.
You can pass entries for your monthly salaries quicker than ever.
Easily pass the entries for Stock Market and Mutual Fund Investments (along with capital gains) – Stock market entries in Tally
You can also pass entries for investments in Real Estate. – Normal Payment Entry in Tally
And the best thing is that you do not have to prepare Balance Sheet or Profit & Loss Account or any of the reports because they are automatically prepared while you are passing the entries. Now let’s say for an example if you are starting up a business of a general store,
what would you require for?
Sales and profit analysis
Taxation (GST, VAT, TDS, TCS)
We have brainstormed the needs of a newly opened general store which are all covered-up by Tally. There are even more functions than this like Audit, Payroll, Manufacturing and so on which if needed can be used. This is just an example of a general-store & the businesses which requires a software for its functioning, Tally is the best fit you can get for your business. This is our answer to your question “What is Tally” and trust Bassam Infotech, we can do much more in Tally.
We will now take you to a memorable trip through the core features of Tally and we will explain the core features in Tally too. You can learn about the features and uses or you can simply go and start learning Tally for free since now, you now know the basic meaning of Tally.
Core Features of Tally
We’ve described some of the very core features & important functionality of Tally. The features are listed without giving any specific rank to them. We are sure you will like the detailed listing of some of the amazing features of Tally.
This is like a swimming-pool guide for a first time reading about Tally Software. But once you let Tally in your business, you come to find out it’s a gigantic ocean you can get for your business.
Accounting in Tally
Accounting is the top-notch function of Tally & Accounting is what Tally is known for. Accounting is a basic-function of Tally and most people is not even aware of the other functions in Tally. At the most, professionals will use Inventory management and some of the Taxation features. As many people do not exactly know how to use those features and in many cases they do not even require them.
If Bassam Infotech is particularly talking on Accounting, Tally has been further segmented into SIX different functions.
Contra (Only for cash and bank related entries)
Payment (For payment entries)
Receipt (For receipt entries)
Journal (For entries which don’t include cash or bank and for closing entries)
Sales (For sales billing)
Purchases (For purchase billing)
There are many more functions related to accounting like Credit Note, Debit Note, Reverse Journal, Memos and so on which helps in performing Accounting entries in an easy way.
Billing in Tally
Billing is an inevitable part of all businesses and its serious-care is taken by Tally. Actually, billing is included in Accounting feature discussed above but it has an exclusive function apart from Accounting. The best thing being pointed out in Tally is that when you create a billing entry you do not have to create an accounting entry for the same bill.
This reduces redundancy in entering a big amount of data. So if you are having a shop and you do billing from Tally, you or your accountant do not have to re-perform accounting for the same bills as it is already done once.In Tally, Sales & Purchase vouchers are actually done for billing but they can also be done to produce a simpler voucher. Everything in a bill you can imagine is there in Tally for the purpose of billing.
Payroll in Tally
This feature is of use when you are having a good number of employees. But if yourself or your client-business has a really good rate of transactions then you may need a Tally software. To keep the Payroll in Tally, there are functions like Employee Categories, Employee Groups, Attendance, Pay-Head & surely Employees. For a manufacturing department, there are functions such as Units & Production-Types by which data regarding production done by workers in clear-cut units can also be steadied. Complicated payroll calculations are automatically done in Tally. These calculations often require many hours for the calculation but in Tally, it is done automatically.
Inventory in Tally
As billing is an inevitable part of businesses & same the case with inventory. Effective inventory management can save the excess amount of costs particularly if you are working in a manufacturing environment.
In Tally Software, you can categorize inventories on the basis of groups, units, tariff (applied for goods on which GST is imposed), different stock items & warehouses in which they are stationed. Apart from the above, we can also create Price Lists and Reorder Levels for convenience. Inventory management is done through inventory vouchers.
Banking in Tally
In this current scenario of digitization, without banking, no business can survive. Banking functionality is very well covered by Tally. You can directly print cheque, maintain a cheque register, create deposit slips & payment slip in Tally ERP 9.
Most important function in Banking is Bank Reconciliation (BRS).
BRS will eliminate the tedious task of reconciling the bank statements with the books of accounts and this will save a lot of your valuable time.
Taxation or GST in Tally
A business cannot operate in isolation. It requires a society to operate which is governed by a government which collects different types of taxes on a business which is a commercial activity. Taxation is also covered by Tally. Previously Income Tax, VAT, Excise, Customs and Service Tax were taken care of by Tally. Now GST is also included in Tally’s latest version.
Now, you can also develop GST entries in Tally with GST Returns. The process is simple & easy and almost alike previous taxation entries. If you are having taxation functions enabled then billing is done inclusive of taxes on the Sales or Purchases. At the end of the year or a particular accounting period tax credit or tax payable automatically gets calculated by Tally.
Reporting in Tally
Different types of reports are required at different times for making effective business decisions. There are reports such as statutory reports, payroll reports, job work, In & Out Reports and significantly Exception Report in Tally.
We like Exception Reports because it displays the information what should not have happened and that is what is necessary to take a look at while running a business or simply writing accounts of a client. Reports are not being limited to just Reports in Tally.In fact, at every screen in Tally, you can print it or export it and that can also be called a report in a certain sense.
Ratio Analysis in Tally
This option is not used by many people and the simplest of reason is that many people are not interested in the analysis part or they do their self-analysis. But Tally has included that too in their software.
In the Gateway of Tally, there is an option called Ratio-Analysis which displays many important ratios on the basis of data which was entered by you at the event of creating vouchers. Some of the very common features included in Tally are Current Ratio, Quick Ratio, Debt & Equity Ratio and Inventory Turnover.
You can also adjust the timing for which you should be looking at the ratios. Just in case, you want to know the Current Ratio for the first half of the year which can also be done in Tally.
Wrapping it up
This is Tally & we’ve not seen a software like Tally which is so simple and still have so many functions which are long-lasting. This is the reason why Tally is being used in more than 100 different countries apart from India. From a personal accounting to the shop to manufacturing enterprise, Tally can do all of it single-handed.