DEFINITION:
A computer program or suite of programs designed to record and process accounting
transactions within funtional modules such as accounts payable,accounts receivable,
payroll, and trial balance."
PURPOSE:
to manage and redcord the day-to-day financial transactions of an orgfanization,
prociding a real-time,accurate view of FINANCIAL HEALTH.
WHY:
Adopting accounting software isn't just a tech upgrade; it's a fundamental
business improvement
it drives efficiency, enhances accuracy, and provides the critical insights needed
for strategic growth.
MODERN SOFTWARE LANDSCAPE:
* On-premise
* Cloud-based(SaaS)
* Industry-specific\Niche
* Enterprise Resource Planning (ERP)Systems
POPULAR ACCOUNTING SOFTWARE(FOR SMALL BUSINESSES):
* Zoho Books
* Quickbooks Online
* Xero
* Freshbooks
* Wave Accounting
FOR LARGE:
* SAP
* Oracle Netsuite
* Sage Intacct
FOR INDIA SPECIFIC MARKET:
* Tally Prime
* Busy
* Vyapar
CURRENT TRENDS IN ACCOUNTING SOFTWARE:
* Cloud based platforms
* Rpa Robotic Process Automation
* Integrated Ecosystems
* Mobile accounting applications
FUTURE:
* AI
* Cloud
* Hyper automation
* Mobile access
* Enhanced security
LEDGER CREATION IN TALLY:
a ledger in tally is a record that capture all transactions relationg to a
particular account or item such as cash,bank,customer, supplier, rent, salary
* every transaction you enter in tally affecgts at least two ledgers, following the
double-entry system.
* ledgers are grouped under predefined accounting heads(like current
assets,indirect expenses, etc.,)
DIFFERENT LEDGERS IN TALLY: - TYPE: GROUP:
PURPOSE:
* cash - asset - cash-in-hand
- records all cash transactions
* bank accont - asset - bank accounts
- for bank transactions
* ramesh & cow - liability - sundry creditors
- for suppliers from whom goods are purchased
* kumar traders - asset - sundry debtors
- for customers to whom goods are sold on credit
* sales - income - sales
accounts - records income frojm sales
* purchase account - expense - purchase
accounts - records purchases of goods
* rent paid - expense - indirect expenses
- monthly office\shop rent
* salary - expense - indirect expenses
- salary payments to staff
* capital acount - capital - capital account
- owner'S investment in the business
* drawings account - capital - capital
account - withdrawals made by the owner
* furniture & fixtures - asset - fixed assets
- for office furniture
* gst payable - liability - duties & taxes
- tax liabilities
ledger creation in tally- STEP-BY-STEP:
->open tally prime and select your company
->from gateway of tally, go to :
* masters-> create->ledger
* or simply press alt+G, type create ledger and press enter
->enter the ledger name: e.g., Rent Paid
->select the group: Indirect Expenses
->enter Opening Balance. e.g., 0
->press ctrl + A to save the ledger.
VOUCHER TYPE - SHORTCUT KEY - PURPOSE
Countra Voucher - F4 - Used for cash-to-bank,bank-to-
cash,or bank-to-bank transfers
Payment Voucher - F5 - Used to record all payments made by
the business
Receipt Voucher - F6 - Used to record all money received
by the business
Journal Voucher - F7 - Used for non-cash adjustments like
depreciation or provisions
Sales Voucher - F8 - Used to record sales transactions
Purchase Voucher - F9 - Used to record purchase transactions
Credit Note - Ctrl+F8 - Used when sales returns happen
Debit Note - Ctrl+F9 - Used when purchase returns happen
Memo Voucher - Ctrl+F10 - Used for non-accounting trial
entries
Reversing Journal - F10 - Used for entries that should auto-reverse
on a given date.(rarely used)
Optional Voucher - N\A - Used as draft entries,not posted in
accounts unless regularized
how to enter a voucher in tally:
STEP 1 :Open tally and select company
* Start tally
* From the gateway of tally
* Select or create your company or (alt+F3)
STEP 2 :Go to accounting vouchers
* From the gateway of tally ->press V(Shift + V) ro click on Accounting Vouchers
STEP 3 :Choose the Voucher Type
* Press F9 to open the Purchase Voucher screen.
STEP 4 :Go to Accounting Vouchers
* From the gateway of tally -> Press V(Shift + V)
STEP 5 :Fill in the Details
* Date: Check or change the transaction date.
* Party's A\c Name: Select Cash (since it is a cash purchase).
* Purchase Ledger: Select the ledger under Purchase A\c
* Amount: Rs. 10,000
* Narration: Enter a note like " Cash purchase of goods"
STEP 6 :Save the Entry
* Press Ctrl+A to save
ADDITIONAL TIPS:
Create ledger accounts before entering vouchers.
Use (alt+F2) to change the date of the voucher
CREATE A NEW COMPANY NAMED:"YOUR NAME".CREATE THE FOLLOWING LEDGERS:
capital account
ICICI bank
rent account
salaries account
furniture account
rohan
modern furnitures
sales account
purchases account
RECORD THE FOLLOWING TRANSACTIONS FOR APRIL 1ST, 2023:
owner started the business bhy bringing in 2,00,000 cash.
deposited 1,50,000 cash into ICICI bank
purchased furnitue worth 25000 from "MODERN FURNITURES" on credit
Paid salaries of 15,000 in cash.
Sold goods worth 30,000 to Rohan on credit
Received a cheque of 10000 from Rohan
Paid rent of 5000 by cheque from ICICI bank.
Transferred 2,000 form ICICI Bank to the cash box
Paid carriage-in-wards expenses 1,000 payment voucher
Purchased goods worth 7,000 form modern furniture
muthu and co & sudalaimuthu and co:
pruchased goods from Dr.sudalaimuthu & co for rs100000
sold goods to muthu & co for Rs.50000
returned goods worth Rs.5000 to Sudalai & co
Muthu & co returned goods worth Rs.2000
settled sudalai & co
muthu & co settled his account
"SALES - DEBTORS"
"PURCHASE - CREDITORS"
