Introduction to Tally, features and Advantages

Anand Wed, 08/18/2021 - 12:32

Introduction to Tally :  Tally is an complete accounting software. It is a versatile and massive software package, being used by various types of business Organisations

History of Tally

  • Tally is a complete business solution for any kind of Business Enterprise. It is a full fledged accounting software.
  • The Initial Release of Tally was Tally 4.5 version. This is DOS (MS-DOS) based software released in the beginning of 1986's. It had Basic Financial Accounting / Book Keeping Tools. Personal computers had gaining popularity in India those days.
  • Peutronics (The Company that develops Tally) used this opportunity and put their Tally Version 4.5 on the market.
  • Auditors and Accountants who used to maintain large volumes of hard-bound notebooks were amazed at the ability of Tally to calculate Balance sheets and Profit Loss accounts within seconds. All you need to do is just create Ledgers and enter vouchers. Tally will do the rest. It will create all the statements, Trial Balance and Balance Sheet For you.
  • The subsequent Tally releases are Tally 5.4, Tally 6.3, Tally 7.2, Tally 8.1 and Tally 9.0, Tally ERP (Enterprise Resources Planning). These release Include support for Inventory used to stock maintenance of the company, Payroll which used to employee salary calculation and wages payments and Multi Lingual support in Many Indian languages Hindi, Tamil, Telugu, Kannada, Malayalam, Gujarati, Marathi and more

Versions of Tally:

  • Tally 4.0 & Tally 4.5: This version MS-DOS support financial accounting system. It takes care of accounting activities only such as Ledgers Classification Vouchers Entry. It provides simple financial reports and bill wise analysis of debtors and creditors in the business.
  • Tally 5.0: This version is an upgraded version to tally 4.5 and it works in windows operating system Inventory modules is introduced in this version, which involves detailed inventory, structure invoicing and integrating accounting and Inventory records.
  • Tally 5.4: This version is an improved module over the version 5.0 where it is capable of converting earlier data formats in to the current data format. This is possible though Import of Data Facility.
  • Tally 6.3: Tally 6.3 is extended enterprise systems whereby it interacts with other system through ODBC (Open Data Base Connectivity) you and e-mail upload your financial records form tally.
  • Tally 7.2: This version is an integrated enterprise system provides different kind of taxes like VAT, TDS & TCS and Service Tax modules is introduced in this version.
  •  Tally 8.1: Tally 8.1 is multi language support software. It supports 10 Languages includes is introduced in this version.
  • Tally 9.0: This version is an improved model over the version 8.1. it supports 13 Languages (Includes Foreign Languages). Payroll, POS (Point of Sales) modules is introduced in this version.
  • Tally.ERP9: This is the latest version which provides different features like remote access,much powerful data security, tally.net and many more.
     

Tally ERP9 is considered as the latest version.

Features of Tally

1. Accounting Features

Handles different types of vouchers

  1. Payments Receipt
  2. Journals
  3. Debit Notes
  4. Credit Notes Sales Notes
  5. Purchase Notes
  6. Receipt Notes
  7. Delivery Notes etc.

Handles Primary Books of Accounts

  1. Cash Book
  2. Bank Book
  3. Ledger
  4. Purchase registers
  5. Sales Registers etc.,

Used to prepare Statement of Accounts

  1. Trial Balance
  2. Profit and loss Accounts
  3. Trade Accounts
  4. Balance Sheet
  5. Funds Flow
  6. Cash Flow

2. Financial Management Features

  • We can get closing stock value as entered in stock ledgers by non-integrating Accounts and Inventory. Daily Balances and Transactions value can be got.
  • Funds flow and cash flow statements to track movement of cash and funds in the company.
  • Tally computes interests as per book date.
  • Tally provides Budgeting option.
  • Ratio Analysis provides important performance ratios that give the pulse of the corporate health.

3. Inventory Management Features

  • Flexible invoicing and billing terms.
  • Flexible units of measure.
  • Stock Transfer-Tally provides stock journal.
  • Stock query provides all relevant information for any stock item in a single screen.
  • Multiple stock valuation methods like FIFO, LIFO and average methods are enhanced in Tally.

4. Security Features

  • The system administrator can define multiple levels of security. Hence can credit, authorize-users, assign passwords and assign specific task rights.
  • Tally offers data encryption (Tally vault) and follows Data Encryption Standard (DES) Encryption methods.
  • Tally provides options for data backup in floppy/hard disk and restoration of backup data.
  • Tally locker: It is a small portable hardware device of a thumb size with storage capacity of 16MB. We can store data and work directly at tally locker. When the task is over, we can simply keep it in our pocket. It is also used for backup.

5. Technological features

  • Tally allows importing data from other software as well as exporting data from tally.
  • ODBC connectivity is available in Tally. We can connect applications like MS Word, MS Excel, Oracle and can use data from tally directly.
  • While working with tally, we can e-mail, browse a website. We can send a report on document directly from tally.
  • We can upload reports on the website directly from tally.
  • Protocol support for HTTP, HTTPS, FTP, SMTP, ODBC and RAW sockets with data interchange formats like XML, HTML, related formats.

     

Advantages of the Tally

1. Simple and Rapid Installation

Tally.ERP9's installation is a wizard driven, simple and speedy process involving minimal userintervention. The software occupies tiny space and can be installed on any drive. Tally.ERP9 supports installation on multiple systems connected to a network with different operating systems (Windows98, NT, 2000, XP and Windows7)

2. Auto Backup and Restore

Tally.ERP9 provides automatic backup facility to secure your company from any kind of data loss / corruption and helps in smooth functioning of your business. Tally.ERP9 safeguards your data from any loss due to power failure or improper shutdown of the system.

3. Tally Audit

Tally.ERP9 audit feature allows you to verify, validate and accept accounting information based on the masters, users and transactions (vouchers).

4. Split Company Data

Tally.ERP9 allows splitting of company data into multiple companies for the required financial period. Once the data is split, the closing balances of the previous period are automatically carried forward as the opening balance for the subsequent period.

5. Import and Export of Data

Tally.ERP9 allows you to flexibly export and import data in various formats such as MS EXCEL, JPEG, PDF, XML, HTML or ASCII format.