To put in simple words, Tally is an ERP accounting software with its latest version being Tally.ERP 9. This software has the combined power of the financial accounting system and inventory management system. Being a popular accounting software, Tally.ERP 9 makes it easier for businesses to manage their day-to-day transactions, sales, debts, etc while eliminating the risk of manual errors. The best part, Tally.ERP 9 can be integrated with a host of other business applications such as payroll, sales & finance, inventory, purchasing, etc.
Below we’ll look at how to use Tally.ERP 9, so let’s get started!
A] How To Use Tally.ERP 9 Software?
To set up Tally, all you need to do is – download, install, activate and start transacting on it – it is as simple as that. For customizing the Tally software or integrating it with other existing business applications, you would require the help of an experienced Tally.ERP 9 service provider.
For now, here is a step-by-step guide on how to work on Tally.ERP 9.
Step 1 – Download Tally.ERP 9 software from the official Tally website. There is a 30-day trial version that you can opt for to better understand how the Tally software works before purchasing a premium package. Another option for how to use Tally is using it in the Educational mode. This, however, comes with restricted features.
Step 2 – After installation, you’d come across different navigation tools that will help you to access different functionalities. Here, it is important to note that in Tally, everything has a keyboard shortcut. The key is usually displayed next to the option, and learning about these short-cuts will help you to boost efficiency and productivity.
Step 3 – Irrespective of whether it is a trial version or a paid version with a license, to use Tally, you need to ‘create a company.’ In the menu section, select ‘Create a company.’ This will take you to a screen wherein you need to fill in the details about your company.
- Enter company name, as mentioned in the banking records. Add company address, telephone number, and information on statutory compliance.
- Choose ‘Accounts info’ if you are just using Tally to manage your accounts.
- Choose ‘Accounts with inventory’ for the menu if you are using Tally for inventory management as well.
- Choose your preferred currency.
- Enter the start of your financial year, plus the start date for the books.
- Also, don’t forget to turn on the ‘Auto backup.’ This will ensure you have a copy of the details for future needs.
B] Creating Ledgers and Vouchers in Tally
Creating a Ledger
A ledger helps you to record all the transactions of different accounts. You can create a separate ledger for different accounts that you do business with. This will provide more clarity if you need information on transactions of a particular account in the future. There are two types of ledgers here; ‘Cash’ and ‘Profit & Loss Account’.
To create a new ledger;
Step 1 – From the Gateway menu, select ‘Accounts info.’
Step 2 – Next, click on ‘Ledgers’ followed by ‘Create.’ Here, you can create a single ledger or multiple ledgers as per your needs.
Step 3 – After creating a ledger, you also need to choose which group a particular ledger will be assigned to. You can select a group from the given ‘List of Groups.’
Step 4 – Also, for easy identification, always enter a name for your ledger so you know what it contains.
Step 5 – Lastly, enter the opening balance. For a bank account, the opening balance in the ledger would be the current amount in your account. For an amount owed to you by a client or a contractor, the starting amount would be what they owe you. For example; ₹10,000/-
Creating a Voucher
One of the perks of using Tally.ERP 9 is that it comes with several pre-configured types of vouchers. A voucher is a document that records the details of a financial transaction and is used by businesses for multiple purposes such as sales, deposits, everyday expenses, etc.
To create a voucher, you need to;
Step 1 – From the Gateway menu, choose “Accounting Vouchers.”
Step 2 – Next, from the right-hand-side menu, select a voucher option from the available list.
- Contra Voucher (F4): This is used when money is deposited or withdrawn from the bank. Or when money is transferred between 2 accounts in the same company.
- Payment Voucher (F5): This is used for payments made by the company.
- Receipt Voucher (F6): This is used for any income made by the business; interest, sales, etc.
Step 3 – Lastly, you need to fill the required details based on the type of voucher you created. You also need to choose which ledger the voucher will be attached to. Plus, enter the names of the parties involved as well as the date.
This sums up how to use the Tally software. This was a brief Tally.ERP 9 introduction for beginners that just skims on important features. There are many more features that are part of the Tally.ERP 9 software that one can use based on their business needs. Thus, we hope this how to use Tally.ERP 9 step-by-step guide was helpful and if you need help with setting up a Tally software for your business, then feel free to get in touch with us.