Introduction to Accounting in TallyPrime
Accounting in TallyPrime or TallyPrime accounting enables managing your accounting entities, inventory movements, financial & banking transactions, and provides real-time reports on all these.
You also get the required options to handle your banking transactions and reconciliation, business projections, multiple currency handling, interest on outstandings, and accounts verification.
TallyPrime classifies transactions as accounting or inventory based on the nature of the accounting entries and the accounts they affect. The generic category Accounting in TallyPrime includes the chart of accounts, journal entries, contra vouchers, and other vouchers used for checking the impact of notional transactions without immediately affecting your accounts. Other features covered under the section include the accounting and financial reports in TallyPrime, Banking Utilities, options to control your finances, facility to manage use of different currencies in your business, calculation of interest for the receivables, and options to check the accuracy of accounting entries. You also get a Statistics report that displays the summary of the types of accounts and vouchers in your accounts.
Accounting Entry refers to the records you maintain to manage your business on a daily basis. You can use Journal Vouchers to record any type of transaction. For ease of recording, TallyPrime provides different voucher types like sales, purchase, receipt, payment, and so on. You can use contra vouchers for money transfers between different accounts in the business, memorandum vouchers for expenses with currently unknown purposes, reversing journals for checking the impact of transactions before they are effected, and so on. Additionally, you can mark a voucher as optional when you are not certain about the finalisation of a transaction. You can also record a voucher with future date for a transaction that is planned to happen in the future,by marking the voucher as Post-Dated. Steps to create all vouchers are similar, and only a few specifics vary from a voucher type to another. You also get a facility to pre-configure ledger selections using Voucher Class so that your voucher entry becomes faster and less error-prone.
Chart of Accounts in TallyPrime comprises of the accounting ledgers, and a means to group them for the purpose of accounting and financial reporting. TallyPrime provides 28 predefined accounting groups, out of which 15 are primary groups and 13 are secondary groups, under the categories, assets, liabilities, incomes and expenditures. These groups are provided to ensure the generation of meaningful reports as per accounting standards. In addition, you can create groups under the major categories, assets, liabilities, incomes and expenditures, or any of the default primary or secondary groups. For example, Bad Debts account under Current Assets.
Accounting & Financial Reports is a major need to run your business successfully. TallyPrime provides reports like Transaction registers, Day Book, Trial Balance, Balance Sheet, Schedule VI Balance Sheet, Profit & Loss Account, Cash & Fund Flow, Ratio Analysis, Cash & Bank Book, and so on, with real-time data. Similarly, Receivables and Payables reports provide direct aid in outstanding management.
Banking Utilities are for managing your transactions that involve one or more banks. You can record receipt of money from your parties into your accounts by means of cheques, DDs or electronic payments. Such receipts can be recorded even when you are uncertain about the account to which you are depositing the payment instrument, and tag the account later. Similarly, you can record payments made to your suppliers using cheque, DDs or electronic payments. You can print details on pre-printed cheque leaves received from your banks, or even print the cheque on blank stationery for your records.Generate deposit slips for cheques, DDs or cash, or sent electronic advise to selected banks to complete banking transactions. There are options to do reconciliation of bank statements electronically, or otherwise. Bank Book assists in checking all your bank transactions.
Financial Controlling options enable you to manage different cost centres for allocation of incomes and expenses, define budgets and track budget variance, and define scenarios to check the impact of planned expenses on your business. All these what-if analysis can be done using non-accounting transactions like optional vouchers, memorandum, or reversing journals – without affecting your books directly -to ensure accuracy of your accounts at any point in time.
Define different currencies that you accept in your business transactions, so that you can do accurate conversions, and check forex gain or loss,and account them appropriately.
Calculation of interest as per the practices you follow for overdue receivables or payables, and loan given or received is another facility available in TallyPrime.You can define interest for a ledger amount as a whole, or transaction-by-transaction as required in your business.
Verification of your books can be done anytime, even if you hand over some work to someone or your auditor makes changes in transactions to ensure accuracy of accounts. You can enable marking the vouchers that get modified or added by your internal auditor or accountants when finalising your accounts, or tax consultant before filing returns. After they complete their work you can verify the changed or added vouchers and take action, if needed.
Statistics gives the number of all the vouchers that are created under each voucher type, and all the types of accounts in your books of accounts. You can configure this report to view different details. As in other reports, you can drill down to the transaction level, if needed.
In this section