Module 1: Introduction To Tally

Overview of Tally

Tally is a comprehensive business accounting software that simplifies complex financial processes,
making it easier for businesses of all sizes to manage their accounting, taxation, and financial
activities. Developed by Tally Solutions Pvt Ltd, Tally has become an essential tool for accountants
and business owners, streamlining various accounting and business management tasks. Tally was first
introduced in 1986 by Shyam Sundar Goenka and Bharat Goenka.

Key Features of Tally:

1. Accounting and Financial Management: Tally enables users to perform all basic accounting
tasks such as recording transactions, generating financial reports, managing ledgers, and
handling accounts receivable and payable. It supports double-entry accounting, ensuring
accuracy and compliance with standard accounting practices.

2. Taxation and Compliance: Tally helps businesses stay compliant with tax regulations by
automating processes related to Goods and Services Tax (GST), Value-Added Tax (VAT), and
other applicable taxes. It facilitates the generation of tax invoices, calculation of tax liabilities,
and submission of tax returns.

3. Inventory Management: Tally includes features for managing inventory, allowing businesses
to keep track of stock levels, manage orders, and streamline purchasing and sales operations.
It provides insights into inventory aging, movement, and stock valuation.

4. Multi-User and Multi-Location Support: Businesses with multiple branches or departments

can benefit from Tally’s multi-user and multi-location support, which enables centralized
data management and financial consolidation across all units.

5. Business Decision Support: With real-time data insights and reporting features, Tally aids in
business decision-making. It allows users to generate customized financial statements such
as balance sheets, profit and loss statements, and cash flow statements, all of which help in
analyzing business performance.

6. Automation and Efficiency: By automating routine accounting tasks, such as voucher

creation, ledger management, and invoice generation, Tally reduces the manual workload,
minimizing errors and increasing efficiency.

7. Data Security: Tally offers strong data security features, including user-level password
protection, data encryption, and backup options, ensuring the protection of sensitive
financial information.

8. Customization: Tally can be customized to suit the specific needs of a business. This flexibility
allows companies to modify reports, fields, and functionalities to better align with their
business processes.
 Importance of Tally in Accounting

1. User-Friendly Interface: Tally Prime features an intuitive interface that simplifies navigation
and usage, making it accessible for both beginners and experienced accountants.

2. Real-Time Financial Reporting: It provides real-time insights into financial data, allowing
businesses to make informed decisions quickly. Users can generate various reports, such as
profit and loss statements, balance sheets, and cash flow statements.

3. Automation of Tasks: Tally Prime automates many accounting tasks, reducing manual errors
and saving time. Functions like invoice generation, payment processing, and payroll
management can be streamlined.

4. Multi-User Access: The software supports multiple users, enabling collaborative work among
accountants and finance teams, which is essential for larger organizations.

5. Inventory Management: Tally Prime helps in managing inventory effectively, tracking stock
levels, and managing purchases and sales, which is crucial for businesses with significant
inventory.

6. Compliance and Taxation: The software is designed to adhere to local regulations and tax
laws, making it easier for businesses to remain compliant. It facilitates GST calculations and
filing, which is particularly important in many regions.

7. Scalability: Tally Prime can grow with the business, accommodating increased transactions
and users without a drop in performance.

8. Data Security: It offers robust data security features, ensuring sensitive financial information
is protected against unauthorized access.

9. Customization: Users can customize reports and features according to their specific business
needs, enhancing usability and relevance.
 Installation and Set Up of Tally Prime

You can install Tally Prime on any computer with 64- bit edition of Microsoft Windows 7 or later.

1. Download the setup files.

a. Go to https://tallysolutions.com/download/.
b. Click Download.
c. The exe will get downloaded in the Downloads folder.
d. You can copy and paste it to any folder, if needed.
2. Install Tally Prime.
a. Double-click setup.exe.
b. Double-click Install New.
c. Configure Application Path, if needed
3. Click Install.
a. The application gets installed
b. Click Start Tally Prime to launch Tally Prime.
c. You can activate the license or you can continue using the educational version, and
thereafter, you can start using Tally Prime.

Company Creation in Tally Prime

Steps to Create a Company in Tally Prime

1. On launching TallyPrime, select Create Company.

 If you already have one company open and would like to create another company,
press Alt+K (Company) > Create.
2. Provide the Company details.
 Enter the Name, Mailing name, and Address.
 Enter the State, Country, and other contact details.
3. Set up financial year details and security options.
 Financial year beginning from: TallyPrime pre-fills this field based on the date
settings of your computer and the Country selected in the Company Creation screen.
 Books beginning from: By default, TallyPrime fills this field with the financial year
beginning from date.
4. Accept the Company Creation screen. As always, you can press Ctrl+A to save. Saving the
company takes you to the Company Features screen, which displays that the company is
created successfully.
 Module 1: Navigating Tally

Main Screen Components

The Main Screen in Tally Prime is designed to make navigation intuitive and efficient, helping users
access various features and functions quickly. Below are the key components of the Tally Prime main
screen, along with their explanations:

1. Title Bar
 Located at the top of the screen, the title bar displays the name of the software (Tally Prime)
and the active company name.
 It also shows the current date and financial year, helping users track which accounting period
they are working in.

2. Top Menu Bar
 The top menu bar provides access to various features of Tally Prime. Commonly used options
here include:
o Company: Options for selecting, creating, or altering company information.
o Masters: Allows access to master data like ledgers, groups, stock items, and more.
o Vouchers: Provides direct access to voucher creation such as payment, receipt, sales,
purchase, etc.
o Display: Contains reports and insights into financial data, including balance sheets,
profit & loss, and more.
o Quit: Exits Tally Prime.

3. Gateway of Tally
 This is the home screen and central hub of Tally Prime, which displays a list of all accessible
features and sections, such as:
o Masters: Manage ledgers, groups, stock items, cost centers, etc.
o Transactions: Create and modify vouchers like payment, receipt, sales, purchase, etc.
o Utilities: Access utilities such as the calculator, or data import/export options.
o Reports: Access financial and management reports, such as balance sheet, cash flow,
stock summary, etc.
 The Gateway of Tally organizes the available functions into hierarchical menus, making it easy
to navigate to different features.

4. Sidebar / Right Bar

 The sidebar (or right bar) appears on the right side of the screen and provides quick access
to commonly used tasks and options. It typically includes:
o Change Company: Switch between multiple companies quickly.
o Change Period: Modify the date range for transactions or reports.
o Switch to Reports/Go to Reports: Directly navigate to reports or go back to previous
reports you were working on.
 o Chart of Accounts: Access a list of ledgers, groups, and cost centers used in the
company.
o More Reports: Explore additional report options, depending on the active screen or
context.
o Search Bar: A new feature in Tally Prime that allows users to search for specific
functions, reports, or vouchers across the system.

5. Display/Work Area
 This central portion of the screen shows detailed information depending on the section or
function currently in use, such as:
o Vouchers for transaction entry.
o Ledgers, stock item details, or customer records.
o Reports like the balance sheet, profit & loss, or inventory summaries.
 The work area updates dynamically based on the option you choose from the Gateway of
Tally or other menus, allowing you to interact with data (enter, modify, or view) within the
system.

6. Bottom Menu Bar

 The bottom menu bar contains shortcuts and utility options that are context-sensitive,
changing based on the current task or screen. Some common options include:
o F1 to F12 function keys: Access common features like company selection (F1), period
change (F2), and others (explained below).
o Alt, Ctrl + Letter combinations: Tally Prime also supports shortcuts using
combinations like Ctrl + A to save data, Alt + F1 to view detailed reports, and more.
o Calculator: Tally Prime features a built-in calculator that can be accessed from the
bottom menu bar for quick calculations without leaving the software.
o Language Toggle: Allows switching between different language options, if
configured.

7. Info Panel
 The Info Panel appears at the bottom of the screen and provides context-specific details like:
o Current Period: Shows the financial period you are working in.
o Active Company: Displays the company name you are currently working on.
o Last Activity or Last Accessed Reports: Tracks recent activities like transactions or
reports for quick reference.
o Messages and Alerts: Displays system messages, alerts, or updates, such as the need
for data backup or compliance alerts.

8. Function Keys (F1 to F12)

Tally Prime makes extensive use of function keys to simplify navigation and improve workflow.
Function Keys and Keyboard Shortcuts