Bank-related activities are performed by business owners day in day out. The Banking feature in TallyPrime assists and allows business owners to perform several bank-related operations; payments to parties, bank reconciliation, and cheque management. The feature enhances and simplifies the banking experience, saving time, reducing errors, scaling up traceability, and improving productivity. In short, the banking feature in TallyPrime ensures an end-to-end solution to the banking needs required to run your company smoothly.

A. Banking Utilities in Tally Prime

Among several features supported by TallyPrime in major business operational areas, banking utility is one. TallyPrime is a host for multiple banking utilities that include:

1. Auto Bank Reconciliation

Reconciling the company’s books with the bank’s statements is a tedious task for accountants. TallyPrime makes this simple by offering you a bank reconciliation feature. This feature shows the difference between the bank balance shown in the bank statement of an organization and the corresponding amount reflected in the organisation’s accounting records.

  • To reconcile bank statements with a long list of transactions simply import the bank statements, and the reconciliation will take place automatically. For this, enable the option for auto bank reconciliation in the bank ledger.
  • The Starting Date for reconciliation of the bank accounts may be different. Thus, when a bank account is created, the user is prompted to mention an Effective Date for Reconciliation. This is generally considered as the ‘Books Beginning’ from the date itself. If the data is imported from a previous Tally version or another system, the reconciliation of the bank accounts with the bank statements needs to be done from the very beginning.
  • The Import Progress Bar is displayed followed by the Success message with the count of total entries in the bank statement, transactions reconciled, and additional bank entries. Bank dates get filled automatically in the field name ‘Bank Dates’ (in the Bank Reconciliation statement) after importing.
  • The transactions executed at the bank’s end, such as bank charges, interest credit, etc but not yet reflected in the books of accounts, appear under the Amount Not Reflected in Company Books.
  • New Vouchers can be created to link unlinked transactions, or they can be reconciled to existing transactions. Bank Reconciliation is suggested to be saved before reconciling the unlinked transactions to prevent any mistakes.

Further reading: How To Upgrade Tally.ERP 9 To TallyPrime

2. Cheque Management

You can manage a variety of predefined cheque formats, cheque registers, multiple cheque books, and other banking needs with TallyPrime.

  • It allows you to maintain a record of all your cheque payments. It also allows you to keep a tab on the cheques received from third parties.
  • In TallyPrime, cheques can be configured based on the type of cheque book you use for your business. With this simple configuration, you can get the cheques printed as per your business requirements.
  • Printing of self-cheques can be configured. A contra entry has to be passed by entering Self as the Favouring Name in the Bank Allocation Screen.
  • For post-dated cheques, an entry can also be marked as post-dated in TallyPrime. A comprehensive summary of all transactions can be obtained, involving transactions with the post-dated cheque using the Post-Dated Summary Report. Post-dated transactions can also be included in other accounting reports; Group Summary, Ledger Vouchers, Outstanding reports, etc.
  • The Banking Menu in TallyPrime also provides the facility to print pending, already printed, or required cheques from a single screen continuously.

3. E-Payments

E-payments is a unique feature that syncs your bank master, party master, and voucher entry in a common platform, intimating the payment transaction to the bank.

  • E-payments in TallyPrime offer the facility to send payment instructions to the bank in a much faster, secure, and convenient manner, without having to visit the bank. In addition, TallyPrime also supports various modes of fund transfer such as NEFT, RTGS, etc.
  • Your E-payment transactions can be tracked, so identifying any incomplete information or mismatch in beneficiary details is possible.
  • Single or multiple transactions can be exported in TallyPrime at a time.
  • The option to open the bank portal directly from the e-payments report and authorise any pending transactions can be accessed too.
  • An intermediate or reverse file is provided by the bank portals that record the status of your e-payments. All you need to do is import the intermediate file to TallyPrime, and it will automatically update the reconciliation status for you.

The transactions taking place via TallyPrime are safe. However, if you want additional security, authorise only certain users for e-payment reports & operations. Also, create users with different levels of rights.

4. Deposit Slips

Any cash received by your business must be added to the bank with a relevant Cash Deposit Slip attached to the same. You’ll find the ‘Cash Deposit Slip’ option in the Banking menu. You can use this feature to generate cash deposit slips bank-wise. All information once configured doesn’t have to be re-entered; like the Account Number, Account Holder Name, Bank Name, Cash Denomination, etc. These deposit slips can also be printed.

  • Similar to Cash Deposit Slips, you can also generate and print Cheque Deposit Slips for payments received through cheques or demand drafts and are needed to be deposited in the bank. You need to select the required bank account from the list, click print.
  • When printing multiple Cash Deposit Slips, the slip for the first transaction will be printed, and then a new Cash Denomination details screen for the next selected transaction will appear.
  • You can specify the details there and continue printing.
  • In cases where the Print Consolidated Cash Deposit Slip option is set to yes, a blank Cash Denomination details screen appears, and a combined Cash Deposit Slip for all the transactions is printed.

B. How to Add Bank Details in TallyPrime?

Bank Ledgers consist of all relevant bank information that you use to make or receive payments. Below are the steps of how to add bank details in TallyPrime and create a bank ledger.

Step 1: Go to Tally Gateway → Create → Select Ledger → Press Enter

Step 2: Enter the Name of the Bank Ledger. In the Under field, select Bank Accounts from the List of Groups (Savings Account, Overdraft Account, or Cash Credit Accounts)

Step 3: Provide Bank Details: Account Holder’s Name, Account Number, IFSC Code, Bank Name (From the List of Banks), Branch, BSR Code and Client Code

Step 4: Under Bank Configuration, set or alter cheque range in the Cheque Range Management

  • Enable Cheque Printing → Yes
  • Set/Alter Cheque Printing Configuration → Yes
  • Enable Auto Reconciliation and Set/Alter Auto Reconciliation Configuration → Yes
  • Enable E-Payments and Set/Alter E-Payments → Yes
  • Enter Name, Address, State, and Pincode in the Mailing Details
  • Accept the screen and click CTRL+A to save the Bank Ledger

Final Note

Using these Banking Utility features in TallyPrime will make your banking transactions more seamless and worry-free. So, don’t hold back anymore and get yourself a TallyPrime version now.