Unit I: Tally Accounting - Introduction
Tally Accounting is one of India’s first software products. It is a
software used for financial accounting purposes. The name is
inspired by the word "Tally" which means to count, to keep the
record. Tally is a complete business solution for any kind of
Business Enterprise.
Tally is a wonderful accountancy , Inventory and taxation
package. It has 1.5 million customers around the globe, over 100
countries. It is user friendly, simple and flexible.
Tally Solutions Pvt. Ltd., is an Indian multinational company that
provides enterprise resource planning software. It is
headquartered in Bengaluru, Karnataka India.
Tally History:
Tally package was founded by Shri. Shyam Sunder Goenka and
Shri. Bharat Goenka.
Bharat Goenka is an industrialist from India. He is the co-founder
and managing director of Tally Solutions. In 2020, he received the
Padma Shri honour from the Government of India for his
contribution in the field of trade and industry
In 1986, Bharat and his team designed and developed an
accounting software named “PETROUNICS FINANCIAL
ACCOUNTANT“.
It was the first code less accounting package. It functioned only
as basic accounting.
Petrounics Financial Accountant package was renamed as Tally in
1988.
Petrounics Pvt Limited company was formally renamed its
company name to TALLY SOLUTIONS in 1999.
Versions of Tally :
TALLY 3.0
This version was released in 1990. It was basic accounting
software only and fulfilled the needs of small enterprises . It was
run in Microsoft Disk Operating (MS – DOS) only.
Tally 4 : This version was released in the year 1992. This was also
an MS DOS based application and better version than previous
versions.
Tally 4.5: This version was released in 1994 and like previous
versions, this was also ms dos based application.
Tally 5: This version was released in the year 1996. This was the
first version of tally with windows operating system. And this
version also included Inventory modules. Inventory means, stock
and godowns maintenance.
Tally 5.4: This version was released in 1996 and updated version of
5.0. Tally 5.4 version has data import facility and it can convert old
data formats to newer one.
Tally 6.3 : This version was released in 2001. This version has open
database connectivity (ODBC) which can interact with other
systems.
Tally 7.2: This version was released in 2005. This version has a
taxation system. It included the taxes like Value added tax (VAT),
Central sales Tax (CST), Tax Deduction at source (TDS), Tax
collection at source (TCS) and Service Tax.
Tally 8.1: This version was released in 2006. It has the feature of
Multi Languages and support for 10 languages.
Tally 9.0 : This version also released in 2006, and updated version
of 8.1.In this version, Multi Language support increased to 13. And
new features like Payroll, Point Of Sale (POS) included in this .
TALLY ERP 9 : ERP stands for Enterprise Resource Planning. This is
the version which can give industries a complete business
solution. This version includes remote access, tally. net, remote
access and data security etc. The latest version of Tally is 6.6.2
and released on 19-05-2020.
Features of Tally: The features of Tally are as follows:
1. Simplicity: Tally.ERP 9 accounting software is easy to set up,
simple to use and is designed to simplify the complex day to
day activities associated in an enterprise. It allows easy
Keyboard operations and requires basic knowledge of
Accounts and English to use it.
2. Auditors’ Edition: A special Auditors’ Edition is offered by
Tally.ERP9, which provides auditing and compliance
capabilities exclusively for Chartered Accountants.
3. Remote Access: Tally.ERP9 provides its users with remote
capabilities to access the data from any location whatsoever
at any point in time.
4. Scalability: Tally.ERP9 suits any style of business needs and
eliminates the necessity for a business to change its style of
operation, in order to adapt to the nature of the application.
5. Power: Tally.ERP9 allows users to maintain multiple
companies and with unlimited levels of classification &
grouping capabilities. It even allows drill-down facility from
report level to the transaction level.
6. Accounting without Codes: Tally.ERP9 allows accounting
with the regular names without any account codes.
7. Real-time processing: Real-time processing allows
immediate posting and updating of books of accounts as
soon as the transactions are entered, thereby facilitating
instant statements and reports. It also facilities a real-time
and multi-user environment.
8. Concurrent multilingual capability: Tally.ERP9 offers its
users with the exclusive capability of maintaining their
accounts in any Indian language, viewing them in another
language and printing them in yet another Indian language.
9. Flexibility: Tally.ERP9 comes with a flexible option to
generate instant reports for any given period, either month
or a year or at any given point of time besides providing the
facility to switch between Accounting & Inventory reports of
the same company or between companies.
10. Speed: Tally.ERP9 provides the capability to generate
instant and accurate reports, which assists the management to
take timely and correct decisions for the overall productivity and
growth of the organization.
Advantages of Tally: The advantages of Tally are as follows:
1. Data reliability and security: In Tally, the entered data is reliable
and secure. There is no scope of entering the data, after being
entered into the software.
2. Payroll management: Several calculations that need to be
made while disbursing salary to employees. Tally is used to
maintain the financial record of the company that includes net
deduction, net payment, bonuses, and taxes.
3. Management in the banking sector: Banks use Tally to manage
various user accounts, and also calculate interests on deposits.
Tally Support can make the calculation easy and banking simpler.
4. Ease of maintaining a budget: Tally is used to maintain the
budget. Tally is used to help the companies to work and manage
expenses by keeping in mind the total budget which is being
allotted.
5. Simple tax returns filing: Tax GST is used to ensure that the
company complies with all GST norms. Tax GST takes care of
service tax returns, excise tax, VAT filing, TDS return, and profit
and loss statement for all small businesses.
6. Audit tool for compliance: It acts as an audit tool. It is used to
carry out regular audits of companies. It does a thorough
compliance check towards the financial year beginning and
ensures that all the monetary transactions are smoothly being
carried out.
7. Remote Access of Data: In Tally, employees can access the
financial data using the unique User ID and password. The logging
and access of data can be done by sitting at the comforts of one's
office or house.
8. Quick Access to Documents: Tally can save all invoices,
receipts, bills, vouchers in its archive folder. Using the Tally, we
can quickly access any of the previously stored documents. We
can immediately retrieve all the billing related files.
9. Control Centre: works as an interface between the user and
Tally.ERP9 installed at different sites and enables the user to
centrally configure and administer Site or User belonging to an
account.
10. Customization : Tally customization makes the software
suitable for distinctive business functions.
Differences Between Manual and Computerized Accounting:
Important Terminology of Accounts:
Account: An Account keeps the records in a classified manner in the
general ledger. A record of financial transactions for an Asset,
Individual, Organization, Expense or Income.
Debit & Credit:
Debits and credits are terms used by bookkeepers and accountants when
recording transactions in the accounting records. The amount in every
transaction must be entered in one account as a debit and in another account
as a credit.The first use of the terms observed in Luca Pacioli's 1494 book “All
about Arithmetic, Geometry, Proportions and Proportionality”.
'Debit’ came from the Latin words debere which means ‘to owe’
and ‘Credit’ from ‘credere which means ‘to entrust’ Assets were
owed to the owner and the owners' equity was entrusted to the
company.
******************************
