FUNDAMENTALS OF ACCOUNTING

UNIT-5
COMPUTERIZED ACCOUNTING

ACCOUNTING SOFTWARE
Accounting software is a computer program that assists bookkeepers and accountants in
recording and reporting a firm's financial transactions. Accounting software is crucial in
helping organizations run their day-to-day business processes. It allows business leaders to
keep their finger on the pulse of their company’s financial health.
TYPES OF ACCOUNTING SOFTWARE
1. General Accounting Software
2. ERP Software (enterprise resource planning)
3. Payroll Software
4. Inventory Management Software
5. Invoicing Software
TALLY SOFTWARE
Tally is an ERP accounting software package used for recording day to day business data of a
company. It is used to automate and integrate all your business operations, such as purchasing,
finance, sales, inventory, manufacturing.
FEATURES OF TALLY SOFTWARE
1. Accounting:
Tally is primarily known for its robust accounting features. It helps businesses maintain their
books of accounts, record financial transactions, and generate various financial reports.
2. Banking:
Tally allows users to manage their banking transactions, including features for bank
reconciliation, fund transfers, and recording other banking transactions.
3. GST (Goods and Services Tax) Compliance:
Tally supports GST compliance, helping businesses manage their tax-related requirements. It
enables the generation of GST invoices, filing GST returns, and provides the necessary reports
for compliance.
4. Inventory Management:
The software includes features for inventory management, allowing businesses to track stock
levels, manage purchases and sales orders, and generate reports related to inventory.
5. Financial Management:
Tally facilitates financial management by providing tools for budgeting, cash flow
management, and financial analysis. It helps businesses gain insights into their financial health.
6. Statutory Compliance:
Tally is designed to handle various statutory compliance requirements, including tax
compliance, such as Income Tax, TDS (Tax Deducted at Source), and others.
7. Multi-Currency Support:
For businesses involved in international transactions, Tally supports multi-currency
accounting, making it easier to manage financial transactions in different currencies.
8. Data Security and Access Control:
Tally offers features for data security, including user authentication and access control. This
ensures that sensitive financial information is accessible only to authorized users.
9. Payroll Management:
Tally includes features for payroll management, helping businesses handle salary calculations,
deductions, and other aspects of employee payroll.
10. Reports and Analysis:
Tally provides a wide range of pre-built reports for financial analysis, including profit and loss
statements, balance sheets, cash flow statements, and more. Users can also customize reports
based on their specific needs.
11. Integration:
Tally can be integrated with other business applications and tools, allowing seamless data
transfer and reducing manual data entry.
12. Audit and Compliance Tools:
Tally provides tools to assist with internal and external audits. It helps in maintaining
compliance with accounting standards and regulations.

STEPS TO CREATE COMPANY IN TALLY SOFTWARE

Creating a company in Tally software involves several steps. Here is a basic guide to creating
a company in Tally:
1. Open Tally Software:
Launch the Tally software on your computer.
2. Go to Gateway of Tally:
Once the software is open, you will be on the "Gateway of Tally" screen. This is the main menu
where you can access various features.
3. Select "Company Info" Menu:
In the Gateway of Tally, find and select the "Company Info" option. This is where you manage
information related to companies.
4. Create a New Company:

Inside the "Company Info" menu, you will find an option to create a new company. In most
versions of Tally, this option is labeled "Create Company" or something similar.
5. Enter Company Details:
When you select "Create Company," you will be prompted to enter various details about the
company. This information typically includes:
• Name of the Company: Enter the name of your company.
• Address: Input the address of your company.
• Financial Year: Set the financial year for your company.
• Books Beginning From: Specify the date from which you want to start maintaining
your books.

6. Set Security Control (Optional):

Tally provides options for setting security controls. You may need to set a password to restrict
access to certain features. This step is optional.
7. Review and Confirm:
Review the information you have entered to ensure accuracy. Once you are satisfied, confirm
the creation of the new company.
8. Select Features and Configuration:
After confirming, Tally may prompt you to configure certain features based on your business
requirements. This may include options related to taxation, inventory, and more.
9. Save and Exit:
Once you have configured the necessary settings, save the company details. You may need to
exit the "Company Info" menu to return to the Gateway of Tally.
10. Select the New Company:
After creating the company, you may be prompted to select the company from a list if you have
multiple companies. Choose the newly created company to start working on its accounts.