Welcome

Computerized Accounting System

Conducted by:
Mr. S. B. Bansode
(M.Com., G.D.C.&A.,SET, NET)
 Objectives of the study
1. To study the Meaning, definition and advantages of
computerized accounting.

2. To study the comparison between Manual Accounting

& Computerized accounting System.

3. To know the accounting software Tally , it’s features

and different versions.

4. To study the preparation of vouchers , steps,

selections, types, altering, deleting of vouchers,
feeding of data and generation of report
 Computerized Accounting
Computerized accounting system is an accounting
information system so as to process the financial data
transactions and events as per generally accepted
accounting principles (GAAP) to generate reports as
per the need of users.

Transaction Processing System (TPS) is the first

and prime stage in computerized accounting. The main
objective of TPS is to record, process, validate and
store transactions of the business for further process.
TPS involve following steps in
Processing a transaction
Transaction processing system

Data entry

Data Validation

Processing and revalidation

Storage

Information

Report
 Advantages of Computerized
accounting
1. Automation: Since all the calculations are handled by the software,
computerized accounting eliminates many of the mundane and time-
consuming processes associated with manual accounting. For
example, once issued, invoices are processed automatically making
accounting less time-consuming.

2. Accuracy: This accounting system is designed to be accurate to the

minutest detail. Once the data is entered into the system, all the
calculations, including additions and subtractions, are done
automatically by software.

3. Data Access: Using accounting software it becomes much easier for

different individuals to access accounting data outside of the office,
securely. This is particularly true if an online accounting solution is
being used.

4. Reliability: Because the calculations are so accurate, the financial

statements prepared by computers are highly reliable.
5. Scalable: When your company grows, the amount of accounting necessary not only
increases but becomes more complex. With computerized accounting, everything
is kept straightforward because sifting through data using software is easier than
sifting through a bunch of papers.

6. Speed: Using accounting software, the entire process of preparing accounts

becomes faster. Furthermore, statements and reports can be generated instantly
at the click of a button. Managers do not have to wait for hours, even days, to lay
their hands on an important report.

7. Security: The latest data can be saved and stored in offsite locations so it is safe
from natural and man-made disasters like earthquakes, fires, floods, arson and
terrorist attacks. In case of a disasters, the system can be quickly restored on
other computers. This level of precaution is taken by Clever Accounting.

8. Cost-effective: Since using computerized accounting is more efficient than paper-

based accounting, than naturally, work will be done faster and time will be saved.
When one considers that Clever Accounting, one of the latest online accounting
solutions, starts at a low monthly subscription, then computerized accounting really
becomes a no-brainer.

9. Visuals: Viewing your accounts using a computer allows you to take advantage of
the option to view your data in different formats. You can view data in tables and
using different types of charts.
 Top 10 accounting software in India
1. Tally
2. ZOHO Books
3. Quick book Enterprises
4. Marg
5. Busy Accounting Software
6. Profit Books Accounting software
7. Saral Accounting
8. Reach Accounting Software
9. Xero
10.Wave Accounting
 Manual Accounting
Manual Accounting is a system
of accounting that uses physical registers and
account books, for keeping financial records.
 Advantages of Manual accounting
• Error Correction: Despite the convenience and market penetration of computer-
based accounting systems, manual accounting still offers several advantages that
make it a viable alternative. The first is error correction. Double-entry accounting,
attributed to Luca Pacioli, a 15th century Italian, provides a natural way to guard
against data entry errors and number transpositions. Every transaction gets
entered as a debit in one account, and a credit in another account. Trial balances
compare all debits and all credits. If these don’t match, an error is made
somewhere in the accounts.

• Data System Errors and File Corruption

Computer systems store data in ways that aren’t commonly understood by
many users. Opening the wrong file with old data or encountering a data file with
digital errors can ruin the validity of your current data. Manual systems use a single
file, the ledger, for each account. There’s no other version with similar data that
may be confused.

• Always Accessible
Power or internet outages won’t prevent you from working on accounts
unless you’re thrown into complete darkness.
 Manual Accounting and
Computerized Accounting
Sr. No. BASIS FOR MANUAL ACCOUNTING COMPUTERIZED
COMPARISON ACCOUNTING

1. Meaning Manual Accounting is a Computerized Accounting is

system of accounting that an accounting system that
uses physical registers and uses an accounting software,
account books, for keeping for recording financial
financial records. transactions electronically.
2. Recording Recording is possible Data content is recorded in
through book of original customized database.
entry.
3. Calculation All the calculation is Only data input is required,
performed manually. the calculations are
performed by computer
system.
4. Speed Slow Comparatively faster.
Sr. No. BASIS FOR MANUAL ACCOUNTING COMPUTERIZED
COMPARISON ACCOUNTING

5. Adjusting Entries It is made for rectification of It cannot be made for

errors. rectification of errors.

6. Backup Not possible Entries of transactions can

be saved and backed up

7. Trial Balance Prepared when necessary. Instant trial balance is

provided on daily basis.

8. Financial It is prepared at the end of It is provided at the click of

Statement the period, or quarter. button.
 INTRODUCTION of TALLY
 Tally is an ERP (Enterprise Resource Planning) accounting
software package used for recording day to day business data
of a company. The latest version of Tally is Tally ERP 9.

 Tally ERP 9 is fastest and powerful concurrent multi-lingual

(12 languages including 9 Indian language) business
accounting and inventory management software.

 Meet the need of small, medium and large businesses.

 The software handles accounting, inventory management,

order management, tax management, payroll, banking and
many such requirements of the business
 HISTORY AND FOUNDER
• Tally software Developed by Tally Solution Pvt. Ltd.
(1986) It’s a multinational Indian Company.

• Headquarter: Bangaluru, Karnataka

• Founded by : Shyam Sunder Goneka & Bharat Goenka

• Website link:- https://tallysolutions.com/

 All Tally versions
Sr. No. Year Versions Contents

1 1990 Tally 3.0 Basic Accounting for small, business orgnization

2 1991 Tally 3.12 Basic of Accounting
3 1992 Tally 4. DOS Based Accounting

4 1994 Tally 4.5 Financial Accounting, Classification, reports

5 1996 Tally 5 Inventory Modules structural involving and

integrated accounting and inventory records.

6 1996 Tally 5.4 Capacity of importing of data, able to convert earlier

data formats into the current data format.

7 2001 Tally 6.3 An extension of enterprise system.

8 2005 Tally 7.2 An integrated enterprise system, provides
various types of taxes such as TDS, VAT &
TCS along with service tax modules.

9 2006 Tally 8.1 Multi language, support 10 language

10 2006 Tally 9 Support 13 languages, including foreign

ones and also includes payroll, POS (Point
of Sales)

11. 2009 Tally ERP 9 Complete Business Solution

12. 2015 Tally ERP 9 Taxation and compliance feature

13 2017 Tally ERP 9 with Updated GST compliance software

GST
Tally ERP 9 Screen
 Features of Tally ERP.9
• A leading accounting software
• No accounting codes
• Complete business solution
• Integrated/Non-integrated accounting and inventory
• Flexible and easy to use
• Speed
• Versatility
• Multiplatform availability
• Online Help (Alt+H)
• Tally.NET
• Remote access
• Simple and rapid installation
• Unlimited multiuser support
• Internal Backup & restore
• High security Level
• Tally Audit
• Import and Export Data
• Multilingual capability
 Preparation of Vouchers
Voucher
A voucher is a certificate or document that either
allows you to purchase something or proves that you paid
for something.
Voucher is an original and valid document in every
business. It is proof or an evidence of record entry in the
books of accounts. The entry with the help of voucher is
known as “Voucher Entry”.

Examples of Vouchers
Counter-foil, pay in slip, sales and purchase invoice,
cash memo, bank in slip etc.
 Types of Vouchers provided in
Tally
Sr. No. Function key Types of Voucher Use of voucher

1 F4 Contra Voucher i. Cash Deposited in bank

(Cash With Bank) ii. Cash Withdrawal from bank
iii. Cheque transferred from one bank
to another bank
iv. Loan taken from bank
2 F5 Payment Voucher i. Purchase goods by cash or cheque
(Cash/Bank) ii. Paid Expenses by cash or cheque
iii. Paid loan by cash or cheque
iv. Purchase Fixed Assets by cash or
cheque
v. Any type of payment made by cash
or cheque
3 F6 Receipt Voucher i. Sales goods by cash or cheque
(Cash/Bank) ii. Received Incomes by cash or
cheque
iii. Received cash or cheque from
customer
iv. Any type of income received by
cash or cheque
v. Loan Taken From Friends,
Relatives or other persons

4 F7 Journal Voucher i. Depreciation entries

ii. Assets purchase on credit
iii. Any Type of Adjustment entries
5 F8 Sales Voucher i. Credit Sales
6 F9 Purchase Voucher i. Credit Purchase
7. Ctrl+F8 Credit Note i. Sales return
ii. Interest receivable adjustment
8. Ctrl+F9 Debit Note i. Purchase return
ii. Interest Payable adjustment
9. Ctrl + F10 Memorandum i. Any type of future entry
Steps in entering voucher in Tally
• To know the valid source of document and type of transaction.
• To understand the accounts involved.
• Select type of transaction and press function key from F4 to F10
accordingly.
• Entre the date or change in date (F2)
• Entre the number of vouchers.
• In case Credit sales or credit purchases, entre reference number.
• Open ledger accounts if it is not already opened or created (ALT+C).
• Enter the amount of given transaction and also one can use calculator by
pressing ALT+C
• To show Dr. or Cr. By showing word To and By. To means Credit and
By means Debit.
• Verify the total of debit and credit balance of various accounts. Tally
provide total of both.
• Entre the narration for transaction.
• Entre the adjustable amount if receipt from debtors and payments to
creditors.
• Lastly, Voucher is entered, press Entre key or Y/N and save.
 Voucher entry in Tally ERP 9
1. Select a Company –Gateway of Tally.
2. Gateway of Tally- Accounting vouchers.
3. F2-to update the date
4. F4- Contra (Cash with Bank)
5. F5- Payment (Cash/ Bank)
6. F6-Receipt (Cash/Bank)
7. F7- Journal Entry-provisions, rectification and adjustment
8. F8- Cash and credit sales of Goods
9. Ctrl+F8- Credit note
10. F9- Purchase
11. Ctrl+F9-Debit Note
12. F10 Memorandum (Suspense Transaction or Any type
future entry)
 Altering of voucher
To alter means change or modified. The change or
edit in one or more data voucher is known as altering
of voucher.

Path of Altering Voucher in Tally

Go to Display > Day book > select the voucher that
has to be altered >Make the changes >Save the altered
voucher
 Deleting of voucher
If wrong or incorrect voucher entries are
made. It is essential to delete the said voucher instead
of making reverse entries. This facility avoid the
unnecessary entries and nullifies the wrong effects.

Path of Deleting Voucher in Tally

Go to Display > Day book > select the voucher that
has to be deleted
 Feeding of Data and
Generation of Reports
• After feeding required data, before generating any
report, statement or subsidiary books tally display it on
screen. The report can be saved stored and saved safely
in computer memory, there for business can get data
whenever required.

• Tally providing following outputs after feeding data

1. Books of accounts
2. Reports
3. Data
 Specimens of Report can view in
Tally
• Trial Balance
Gateway of Tally > Display > Trial Balance

• Profit and Loss Account

Gateway of Tally > Display > Profit & Loss Account

• Balance Sheet
Gateway of Tall > Display > Balance sheet
Thank You…
*****