Tally Prime is a popular accounting software used by businesses worldwide for its efficient and reliable features. It offers various reports that help businesses make informed decisions based on their financial data.
The importance of business reports in financial planning cannot be overstated. These financial reports, also called financial statements, give a great deal of information about a company’s financial health, which allows you to analyse data better and gain critical insights. TallyPrime also lets you customise these reports according to your business needs.
In this article, we will compile the 8 critical tally questions that a Tally Prime reports can answer.
1. What Is the financial position of my business?
In Tally Prime, you can check the financial position of a business by generating the Balance Sheet report. Balance sheets are good indicators of a business’s financial health.
How To Check Balance Sheet In Tally Prime:
- Open Tally Prime and select the company for which you want to generate the report.
- Go to the main menu, then select “Reports”.
- Now select “Financial Statements.”
- Next, from the list of financial statements, select the “Balance Sheet”
- For balance sheet configuration in tally, you should choose the date range for which you want to access the financial position of your business and select “Display.”
The generated balance sheet will display assets, liabilities, and equity of the company. The difference between a company’s total assets and liabilities is its net worth. This tally net worth is the main indicator of its health.
By analyzing the Balance Sheet, you will be able to gain a better understanding of your company’s performance. You can see how your business has grown by comparing the balance sheets of different years. As a result, your company will be able to make timely decisions such as planning future projects and meeting unexpected expenses.
If your business is seeking a loan or investment, it is crucial to have a Balance Sheet. External entities, therefore, use Balance Sheets to assess a business’s financial health such as investors, creditors, and banks.
2. What is the stock level of a product?
The stock level of a product can display the current stock levels of all the products in your inventory. Stock movement determines whether a business succeeds or fails, and stock movement also affects reorder levels.
Inventory reports in tally prime that explicitly mention the amount and availability of each stock become essential for businesses. It gives you a detailed list of all the stock items in Tally, their quantity, rate, and value. This report can be found in the Tally Prime Main Menu (Gateway of Tally) => Reports => Inventory Books => Stock Summary.
You can also use the report for stock summary in tally to track the stock level of the product over time and make informed decisions about restocking or reducing inventory.
3. How much cash liquidity does my business have?
Finding out the cash liquidity of a business can help you make an informed decision with respect to cash management, investments, and financing activities.
You can determine the cash liquidity of your business with Tally Prime by generating a Cash Flow report. The Cash Flow report displays the movement of cash in and out of your business over a specified period. This report can be found in the Tally Prime Main Menu (Gateway of Tally) => Reports => Cash Flow. You can set the timelines for which you want to generate the report. The cash flow report will give you information such as opening balance of cash, cash inflows, cash outflows, and closing balance of cash for the selected period.
The closing balance of cash in the Cash Flow report will give you an idea of the cash liquidity of your business for the selected period. If the closing balance of cash is positive, it indicates that your business has a cash surplus, and if it’s negative, it indicates that your business has a cash deficit.
4. How much profit or loss has my business incurred this year?
Understanding the profit or loss a business has incurred in a year, can give you insights into your business’s financial performance and give you the ability to make informed decisions regarding revenue generation, cost-cutting measures, and investment opportunities.
In order to find out the profit gained or loss incurred by your business, you can refer to Tally Prime’s Profit and Loss (P&L) report. The report shows the revenue earned, expenses incurred, and the resulting profit or loss for a specified period that you can set. This report can be found in the Tally Prime Main Menu (Gateway of Tally) => Reports => Profit and Loss A/C.
5. How many payments are yet to be made & received?
Keeping track of the different outstanding amounts, that is payment yet to be made and received, is essential to make informed cash flow decisions and ensure timely payments and collections.
It’s very easy to read and understand Tally’s Outstanding payment report. This report can be found in the Tally Prime Main Menu (Gateway of Tally) => Reports => Outstandings.
6. What is the specific date of the transaction in question?
When you know the specific date of a transaction, you can ensure that your account books are up-to-date and accurate.
You can use the tally prime search feature to find the specific date of the transaction. Find the search option in the tally prime main menu. Enter the relevant details of the transaction you want the date for. Then click on the filter button, and it will narrow down the results. You can now locate the required transaction, and find the date in the voucher details.
7. How many e-invoices were generated and how many were cancelled?
When you know the number of invoices generated, you can take the necessary actions to manage your e-invoicing process efficiently. You can ensure that you comply with the applicable laws and regulations. For example, if you notice a large number of cancelled e-invoices, you can analyse the reasons and take corrective actions to prevent such cancellations in the future.
Businesses with a turnover of over 10 crores have been made mandatory to use E-invoicing as of 15th December 2022. Soon, businesses with a turnover of 5 crores will also be required to use it. You can generate the e-invoice report by selecting reports from the gateway of tally. You’ll find it amongst the list of reports.
8. What are the business’s expenses for the year?
Information such as your business’s expenses for the year can help you manage your expenses and optimise your business operations. Let’s assume that a significant portion of your expenses is related to a particular expense head. You can investigate the reasons and take action to reduce the costs. You can get this information through the profit and loss report from the Tally prime reports section.
Tally Prime is a powerful accounting software that can provide valuable insights into your business operations. By generating reports in Tally Prime, you can get answers to crucial questions about your business, including its financial performance, cash liquidity, pending payments, and e-invoice compliance.
These 8 Tally Prime questions that we have covered in this blog are essential for any business owner or accountant to understand. By using Tally Prime reports to answer these questions, you can make informed decisions and take necessary actions to manage your business more efficiently.
Whether you need to track your expenses, analyse your profit and loss, or generate e-invoices, Tally Prime can help you do it all. With its user-friendly interface and powerful features, Tally Prime is an indispensable tool for any business that wants to stay competitive and compliant.
If you’re looking for expert guidance on how to get the most out of Tally Prime and its reports, then we would be glad to help you out. As a certified Tally Partner, we have the expertise to provide you with comprehensive support and training.