Accounting &

Financial Management

Accounting and financial management are the most advanced and powerful features in Tally.
Majority of the Accounting & Financial Management features existed in earlier versions of Tally,
and have evolved greatly over the last twenty years. Tally.ERP 9 the latest offering from Tally,
ensures your experience with the product is improved with increased speed and efficiency of the
product to handle more transactions per day. Tally.ERP 9 powered by Tally.NET technology
bring you the capability to stay connected with your business from wherever and anytime.
Owing to the huge popularity of these features, Tally has become synonymous to Accounting &
Finance and our constant endeavor is to take it to a next higher level with new technology.
Following are the details of the capabilities of Accounting and Financial Management
Simple Accounting in Tally.ERP 9:
= Complete Bookkeeping: Tally.ERP 9 maintains all books of accounts starting from
records of vouchers, ledgers etc. Tally.ERP 9 handles different types of vouchers like
payment, receipt, adjustment entries like journals, debit notes, credit notes, sales,
purchases, receipt notes, delivery notes etc. Tally.ERP 9 follows the double entry system
of accounting and hence will eliminate any possible errors.
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= Books, Registers and Statement of Accounts:
l Books: Tally.ERP 9 maintains all the primary books of accounts like cashbook, bank
Tally.ERP 9 book.
l Registers: Tally.ERP 9 maintains all registers like purchase register, sales register and
journal registers.
l Statement of Accounts: Tally.ERP 9 maintains all statement of accounts like balance
sheet, profit & loss and trial balance, cash flow, fund flow & stock statement.
l General ledger: Tally.ERP 9 maintains details of all ledgers that are defined as per your
business need. You can define your chart of accounts, ledger etc. Ledger reports can be used
for scrutiny of accounts. Tally.ERP 9 follows the concept of single ledger systems, which
includes both personal and nominal accounts.
l Credit Control (Outstanding Management) Including Credit Limit: You can maintain
outstanding reports along with age wise analysis. Credit limits can be given amount wise as
well as period wise. Once credit limits are set for a party, then that particular party cannot be
billed beyond the specified limit. Only the users authorized by you can alter the credit
limits. This helps to monitor as well as control any potential slow collection and warn you
about the potential bad debts.
l Accounts Receivables and Accounts Payable: Tally.ERP 9 provides complete bill wise
information of amounts receivable as well as payable either party wise or group wise. This
feature can track bills, payments/receipts including advances. Tally.ERP 9 gives age wise
analysis reports to keeps you informed for the range of period the bills have been
outstanding. You have the luxury of defining the ageing periods as per your needs. The
aging analysis gives you flexibility to do ageing by due date or bill date.

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= Flexible Voucher Numbering: Tally.ERP 9 provides predefined vouchers and allows you
to define different types of vouchers as per your needs. You can also set the voucher
numbering to either automatic or manual numbering or have no numbering at all to suit
your need. Further you can also assign Prefix and Suffix for voucher numbers and
numbering can restart either from beginning of the year or month.
= Flexible classification of Account Heads / Chart of Accounts: Tally.ERP 9 allows you to
define account heads as per your requirements. Tally.ERP 9 offers 28 predefined widely
used groups, of which 15 are primary groups and 13 are sub groups. Among the 15
predefined groups 9 groups are balance sheet items and the remaining 6 groups are profit
and loss items. You can alter the nomenclature of any of these 28 groups. Further you can
also create any number of primary or sub groups as per your requirements.
= Drill Down / Bird's eye View Display: Tally.ERP 9 allows you to drill down any report up
to voucher level. Example: in a balance sheet you can select the required group and drill
down till the vouchers. Any changes made in the voucher, if allowed by current security
levels, will be reflected real time at all levels.
= Date Based Reporting: Tally.ERP 9 allows you to select any report for a particular date or
for any range of dates. You can also do simultaneous comparison side by side for any two
selected periods including across financial years. Reports are generated based on the
transaction date rather than the date of actual entry and hence Tally.ERP 9 ensures that
information is always represented accurately. This unique approach to bank reconciliation
allows review of past date status for auditing purpose.
= Voucher and Cheque Printing: Tally.ERP 9 provides the facility to print any voucher and
cheque that have been entered.
= Columnar Reports: Tally.ERP 9 provides columnar reports in sales register, purchase
register and journal registers as well as ledgers and cash / bank books.
= Bank Reconciliation: Tally.ERP 9 has the facility to reconcile bank accounts with your
bank statement and provides you information regarding transactions, which have not yet
been cleared by the bank.
Basic Financial Management in Tally.ERP 9:
= Multiple Companies: You can maintain all your companies / branch companies as well as
your own personal accounts in Tally.ERP 9. You can also handle companies concurrently
i.e. you can load more than one company and simultaneously work on all or any of them by
shuffling between the companies. You can also group companies and also generate
consolidated report for the grouped companies.
= Multi Currency: Tally.ERP 9 maintains books of accounts in base currency. You can enter
transactions in multiple currencies and view reports in any other currency. You can invoice
your foreign customers in their currency as well record payments in your currency. Forex
gain/ loss can be tracked immediately at the time of passing a transaction.
= Multiple Financial Year: With Tally.ERP 9 one company can have any number of
financial periods by mentioning the financial year beginning at the time of creating a
company in Tally. Transaction can be moved between multiple financial periods by
selecting a period as per the business requirement.
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= Comparison of data using Multi-columnar Reporting: You can compare information /

reports for multiple periods (year, month, qtr or user defined period, currencies etc) for
same company or multiple companies by using the multi-columnar reporting facility in
Tally.ERP 9. This facility of easy comparison will help you or your management to do
meaningful analysis and will help bring out any exceptions very easily.
= Memo Vouchers: This is a non-accounting voucher and the entries made using it will not
affect your accounts. Tally does not post these entries to ledgers but stores them in a
separate register. You can alter and convert a memo voucher into a regular voucher when
you decide to bring the entry into your books. Memo vouchers can be effectively used
when they are included in scenarios. Scenario reports can be viewed by including these
memo vouchers.
= Post dated Vouchers: You can use this facility for entering vouchers in advance for future
transactions that are definite in nature. The voucher marked as post dated does not affect
the books of accounts till the date specified in the voucher. This facility is extremely useful
when you have to issue or receive post-dated cheques.
= User defined Vouchers: Tally.ERP 9 provides 18 predefined vouchers and also allows
you to define (create) new accounting/inventory vouchers types as per your need.
= Sales and Purchase extracts: Tally.ERP 9 has the facility to extract report from the sales
and purchase registers. The extract report gives you the consolidated figures of all groups
and ledgers for both debit and credit side. With this report you get the complete sales
turnover figures for any period as well as complete consolidated tax return figures which
help in filing your tax returns.
= Daily Balances & Transactions Value: You can view certain reports (cash books / bank
books) and ledgers on daily breakup basis to have transaction value for all days and closing
balances for all days.
= Cash Flows: You can track movement of cash inflow and outflow through cash flow
statement. The report also displays a net flow and average cash flow for any period.
= Interest Calculations: This is one of the most powerful features available in Tally.ERP 9.
You can automatically calculate interest based on the information furnished at the time of
ledger creation. You can view the impact of interest accumulated against each ledger and
in turn against each transaction. Although Tally.ERP 9 provides exhaustive information on
interest implications, the interest amounts are not brought into books. You have the option
to book the interest calculated as per your requirements.
= Percentage Based Reporting: Tally.ERP 9 provides % based reporting on all financial
statements like balance sheet, profit & loss, cash flow, sales register etc.
Advanced Financial Management in Tally.ERP 9:
= Funds Flow: This statement reflects the movement in working capital as well as, fund
flow due to operations, movement of capital and acquisition and sale of fixed assets.
Tally.ERP 9 automatically tracks all the transactions entered and readily provides funds
flow statement.
= Receivables Turnover (Payment performance of debtors): Tally.ERP 9 tracks the
payment performance of all debtors and generates a report to show the average time taken
to pay back.
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= Branch Accounting: With Tally.ERP 9 each branch can handle their individual accounts.
If there is any transaction or transfers between branches or offices then you can enter a
transaction by debiting one branch account and at the other branch make a reverse entry.
When these branches are grouped together then there is no net effect on the books. In case
there is a difference it can be easily used for branch reconciliation.
= Flexible Period Accounting: Tally.ERP 9 can handle multiple periods in a single
company. Once a company is created you can specify any range of dates and obtain reports
for that range. These date range can also be across multiple financial years. Since different
countries have different financial periods, if one of your company has its parent company
in another nation then you can generate a report as per financial periods of the parent
company.
= Consolidation of Companies: Tally.ERP 9 has the ability to create multiple companies
and group them together to get consolidated performance reports for the management
analysis. Changes done in any one of the branch companies, is automatically updated in
the group company. At any point of time a new company could be included in the list of
companies of a particular group.
= Budgeting and control: You can compare the actual performance of the company with
the budgeted figures and also get a variance report. You can define multiple budgets
(optimistic budget, realistic budget) or even create budgets for different periods. The
budget values can be defined for each group and also all ledgers.
= Variance Analysis: This report provides information of variance of actual figures from the
budgeted figures which will help in generating exception reports for the management. The
drill down feature can be used to go to the voucher level details to understand the problem
better.
= Cost / Profit Centers with Multiple Cost Categories: You can allocate funds to different
cost (also called profit) centers, compare one cost center with another, extract
management reports regarding performing and non performing cost/ profit centers.
= Cost Category: In many cases you would like to allocate a transaction to more than one
cost centre.
= Ratio Analysis: Tally.ERP 9 helps you in analyzing ratios of operating cost figures, return
on working capitals etc which will help in taking critical management decisions.
= Scenario Management, Reversing Journals and Optional Vouchers: You can create
multiple scenarios for the purpose of forecasting or to view provisional reports. This can
be done by selectively including certain types of vouchers, which will not affect the
regular books. Optional, memorandum and reversing vouchers are used in scenario
management.
There is a lot more to explain on how accounting and finance management in Tally.ERP 9 can
accelerate your business growth. We recommend you to see a Tally.ERP 9 demonstration and
experience the power. Visit www.tallysolutions.com to schedule an online demo or locate a
Tally Partner near you and request for a demo at your office.

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