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Set Up Your Company

Maintaining your business transactions on a day-to-day basis is critical to your business. To keep a record of all your business transactions, you need to first create a company in TallyPrime. Through the company, you can also view and update all your transaction entries, as needed, and go through the financial reports based on the transactions that you maintain.

Create company: To create the company, just enter the company name, address and other details, such as financial year, security, and base currency information. Once you have created your company, based on your business preferences, you can use the accounting, inventory, payroll, and taxation features. You can also specify the tax registration details as applicable, such as GST, VAT, Excise, TCS, or TDS, which can be accounted for your transactions.

Security: All the business transactions that you maintain in the company remain safe. You can enable additional security options for your company to prevent unauthorised access to your transaction records.

If you have more than one user accessing your company, you can set up security for each user based on their roles.

You can create an account in TallyPrime for each user. Based on the user’s roles, you can access to the tasks the user can perform. For more information, click here.

Say you want to allow a data entry operator to make only transaction entries. You do no want this user to access your financial reports, such as Balance Sheet and P&L. However, you want the user to be able to do back-dated entries when needed. All of these can be done in TallyPrime by creating a user account for the data entry operator role and assigning the necessary rights.

Similarly, you can create more accounts if you want to maintain multiple users. See Security and User Profiles to know more about security rights and user roles.

Multiple companies: Do you have more than one business? If yes, you can create multiple companies in TallyPrime, maintain transactions separately for each business, and also manage the returns for each company accordingly.

Group company: If you are maintaining multiple companies, you can get a consolidated view of such business reports by using the Group Company feature. Viewing the financial reports separately for each business and consolidating the accounts manually can be a tedious task.

Once you have set up your company in TallyPrime based on your business requirements, you can record and manage your day-to-day transactions, and track them – even remotely.

Create a Company to Record Business Transactions

You need to create a company to keep record of all your business transactions and view related financial reports. To create the company, just enter the company name and address and update other details, such as contact and financial year information.

In this section

Create a company

  1. On launching TallyPrime, select Create Company.
    1. If you already have one company open and would like to create another company, press Alt+K (Company) > Create.
  2. Provide the Company details.
    1. Enter the Name, Mailing name, and Address. For more information, click here.
      Name: Specify the company name as customers recognise your business in general. In TallyPrime, this name will appear whenever you need to select the company.

      Mailing Name & Address: This name & address will be printed in all the invoices and reports. This can be the same as the company’s name. However, if you want a different name to be printed in your invoices and reports, you can specify a different Mailing Name. For example, you can have your company name as National Enterprises and the mailing name as National Enterprises Pvt Ltd, which is used in all your business communications. If you are billing from different business locations and want to have the corresponding address printed on the bills, you can add more than one address for your company. Refer to F11 Features.


      Note: By default, your company data will be saved in the location specified under Company Data Path, which is the same as the folder where TallyPrime is installed. For more information on configuring your data path, refer to Manage Your Company Data.

    2. Enter the State, Country, and other contact details. A sample image is shown below. These details can be printed on your invoices, if needed. For more information, click here.
      Country and State: The Country field is prefilled depending on the country specified during installation of TallyPrime. Select the country applicable to your business and then select the State . If you do not see the State or Country that your business operates from, you can create the State or Country in the application on the fly and select the same. Ensure that your base currency is appropriate.
      Telephone, Mobile, and E-mail: You can configure your bills to include these contact details and print them so that your clients can contact you when needed. You can provide your website address to have it printed on your bills. Your customers can go to your website to know about your products and services in detail.

      State and Country in Company Creation

      Accept the screen. As always, you can press Ctrl+A to save the details and create the company. You can set up the remaining company details (steps 3 and 4 below) anytime later.
      Note: The name of new union territory Dadra & Nagar Haveli and Daman & Diu is provided in Release 6.6.3. All masters with Daman & Diu and Dadra & Nagar Haveli are automatically updated with the name of new union territory. The state/union territory name before merger is captured in State (before reorganisation) field. Retaining the pre-merger state/union territory name helps in managing transactions and tax returns from that period.
  3. Set up financial year details and security options.
    1. Financial year beginning from: TallyPrime pre-fills this field based on the date settings of your computer and the Country selected in the Company Creation screen. For more information, click here.
      For example, if your computer date is set to 11-03-2020 and the region is set to India, the financial year is pre-filled as 01-04-2020. If you update the company’s country as UAE in TallyPrime, keeping the computer date as is, the financial year for the company is automatically set to 01-01-2021. This is because, TallyPrime considers the computer date and the financial period applicable for the selected country and updates the Financial year beginning from field accordingly.
    2. Books beginning from: By default, TallyPrime fills this field with the Financial year beginning from date. You can update this, as needed. Say you started your business and have maintained all business transactions since 1-Oct-2020. You can update the Books beginning from date to 1-Oct-2020, while the financial year will be 1-Apr-2020.
    3. Security: This is optional. You can enable security features such as TallyVault and User controls for your company anytime later.
      If you do not see the Security option, press F12 (Configure): > set the following options to Yes:
      • Use TallyVault Password to encrypt Company Data
      • Use User Access Control
        For more information, click here.
        a) TallyVault: If you do not the company name to be displayed in TallyPrime while selecting the company, you can specify a TallyVault password for your company. This encrypts your company and therefore ensures privacy of the company data. You can access this company only if you know this password. This password cannot be retrieved, if lost. Refer to the TallyVault topic for details on managing TallyVault.
        b) User Access: You can allow authorised user access to your company by setting up a username and password for the company. Which means, next time you select the company, you will need to provide this username and password to open the company data. For different users, you can set up different user credentials for controlled access of your company. Refer to the Security Controls topic for details on managing users and access rights.
  4. Specify the Base Currency Information.
    You can set up the base currency depending on the currency used in your business to record transactions.
    To view all the options related to base currency, press F12 (Configure) > set Provide Additional Base Currency details to Yes.
    • If your business includes transactions in multiple currencies, refer to the Multi-currency topic.
  5. Accept the Company Creation screen. As always, you can press Ctrl+A to save.
    Saving the company takes you to the Company Features screen, which displays that the company is created successfully.
    Company Features

Set up company features

As you create a company in TallyPrime, you can set up the necessary features, either now or anytime later, based on your business needs. The basic minimum key features required for you to start recording your business transactions are enabled and displayed by default. To view other features in the Company Features screen

  • Set the Show more features option to Yes.
  • Set the Show all features option to Yes.
Features Description
Accounting
Maintain Accounts This option is set to Yes, by default. Setting it to No will disable accounting-related options for your company.

Enable Bill-wise entry

Enable this option to display the option Maintain balances bill by bill created under sundry debtors and creditors.

When you enter details of sales and purchases with the bill-wise option activated, TallyPrime prompts you to identify the invoice with an appropriate reference number.

The reference number can then be used to allocate payments to the correct invoice to maintain an accurate account of outstanding.

Bill-wise details for non-trading accounts is useful when one needs to track either an installment to be paid or a loan amount to be received over a certain period of time.

Enable Cost Centres

Set Show more features to Yes to view this option.

Used for maintaining and allocating expenses to cost centres.

Enable Interest Calculation

Set Show more features to Yes to view this option.

Enable this option to calculate interest automatically based on the interest rate and the style of calculation specified.

This is useful when interest rates change from time to time.

Inventory

Maintain Inventory

This option is set to Yes by default. This allows you to to maintain your stock or inventory. Setting this to No will disable Inventory-related features for your company.

Integrate Accounts with Inventory

Set Show more features to Yes.

Maintain your stock or inventory along with your books of accounts.

Stock records may contain errors caused by wrong allocation to items. This feature enables finalization of financial books without waiting for the reconciliation of stocks.

You can drill down from the Balance Sheet to view the Stock Register.

Enable multiple Price Levels

Set Show more features to Yes.

Create multiple price levels for your stock items.

Enable Batches

Set Show more features to Yes.

Maintain batch information pertaining to Stock Items. Setting this option to Yes displays the Maintain in Batches field in the Stock Item Creation screen.

Maintain Expiry Date for Batches

Set Show more features to Yes.

Set expiry dates for the batches. This displays the Use Expiry Dates field in the Stock Item Creation screen.

Enable Job Order Processing

Set Show all features to Yes.

Create Job Work Out or Job Work In orders.

Enable Cost Tracking

Set Show all features to Yes.

Analyse and track the cost of an item in transactions.

Use Discount column in invoices

Set Show more features to Yes.

Use separate Actual and Billed Quantity columns in invoices

Set Show more features to Yes.

Specify quantities that are different from those delivered/received when invoicing.

Taxation

Enable Goods and Services Tax (GST)

If your business is under the GST regime, set this option to Yes and specify the GST Details for your company.

Enable Tax Deducted at Source (TDS)

If your business considers TDS payments, set this option to Yes and specify the TDS deductor details along with the applicable Rates and Exemptions.

Enable Tax Collected at Source (TCS)

Set Show more features to Yes.

If your business considers TCS payments, set this option to Yes and specify the TCS collector details along with the applicable Rates and Exemptions.

Enable Value Added Tax (VAT)

Set Show all features to Yes.

If your business is under the VAT regime, set this option to Yes and specify the VAT Details for your company.

Enable Excise

Set Show all features to Yes.

Allow considering excise-related details during voucher entry.

Enable Service Tax

Set Show all features to Yes.

If you pay service tax as part of your business transaction, set this option to Yes and specify the service tax details and set the preferences for your company.

Online Access

Enable Browser Access for Reports

Set Show more features to Yes.

Once your company is connected to Tally.NET server, access the key business report from the broswer in any device using your Tally.NET credentials.

Enable Tally.NET Services for Remote Access & Synchronisation

Set Show more features to Yes.

Use features like Remote Access and Synchronisation.

Payroll

Maintain Payroll

Set Show all features to Yes.

Maintain payroll information in TallyPrime for the selected company.

Enable Payroll Statutory

Set Show all features to Yes.

Maintain payroll-related statutory information.

Others

Enable multiple addresses

Set Show more features to Yes.

Add multiple addresses for your company, as per your business needs.

Mark modified vouchers

Set Show more features to Yes.

For audit purposes, view all vouchers that are altered after creation.

After you have created the company, in the Gateway of Tally screen, under Name of Company, the company name appears in bold.

Multiple companies: Do you have multiple businesses to track and manage? You can create as many companies in TallyPrime and manage your business transactions in each company separately. If you also prefer to get a consolidated view of the health of multiple businesses or submit summarised reports for auditing purpose, you can use the Group Company feature in TallyPrime.

Load the company

Once you have created a company, you can load the company in one of the following ways:

Select the company

  • Open TallyPrime > Alt+F3 (Select Company) > and select the company from the List of Companies.
  • If you have created more than one company, you can browse to the data path and select the required company to open.
    Select a Company

Load company on startup

If you wish to load one or more companies by default, whenever you open TallyPrime, you can configure the same.

  1. Open the Startup Settings screen: Press F1 (Help) > Settings > Startup.
  2. Set the option Load companies on startup to Yes, and press Enter on Companies to load.
    Load Company on Startup

  3. In the List of Companies to Load on Startup screen, select one or more companies, based on your need.
  4. Select End of List, after your have selected the companies to be loaded on startup.

The companies that you select here will be loaded by default next time you open TallyPrime.

Update Company Details | Alter Company

If your company address, phone number, or any other contact information was not provided earlier or has changed, you can update such details in TallyPrime Any changes made to these details will be reflected accordingly in your reports and printed invoices.

  1. Press Alt+K (Company) > Alter.
  2. In the Company Alteration screen, make the necessary changes.
    Alter Company Details
  3. Accept the screen. As always, you can press Ctrl+A to save.

If you do not need the company anymore, you can delete the company as well. For more information, click here.

Press Alt+K (Company) > Alter.

  • In the Company Alteration screen, press Alt+D. The company will be deleted permanently.

If you want to access the business transactions recorded in the company at a later time, you can take a backup of the company before you delete it. Note that once you delete the company, you cannot retrieve it, and therefore keeping a back up of the company data is recommended.

Allow Back-Dated Transaction Entries | Update Financial Year

If you have maintained your books of accounts prior to the current financial year, you can add all of the back-dated transactions to your company in TallyPrime. Let us assume that you started your business in 1-Jun-2019 and have maintained your business transactions since then. However, you created a company in TallyPrime on 1-May-2019. By default, the books and financial years in TallyPrime are both set to 1-Apr-2020.
To allow entries of transactions in TallyPrime starting 1-Jun-2019, you will need to update the financial year information of the company.

  1. Press Alt+K (Company) > Alter.
  2. In the Company Alteration screen, update the Financial year beginning from as 1-Apr-2019 and the Books beginning from date as 1-Jun-2019.
    Alter Financial Year Information
  3. Accept the screen. As always, you can press Ctrl+A to save.

You can change the Books beginning date in the Company Alteration screen anytime to make back-dated entries up to 1-Apr-2019 for the financial year 2019-2020.

For more information, click here.

In TallyPrime, if the financial year and books beginning date are already set to 1-Apr-2018, and you alter the dates to 1-Apr-2019, all transactions recorded during the period 1-Apr-2018 and 31-Mar-2019 will be lost. However, if you need to maintain transactions separately from 1-Apr-2019, considering splitting your company to avoid data loss. Refer to the Splitting Company Data based on Financial Years topic for more information.

Ensure Authorised Access to Company | Set/Remove Security Settings

Security of business transactions and financial reports is critical, especially to avoid misuse or unauthorised access. TallyPrime helps you set up security for your company and change the credentials when required. Based on your business practice, you can enable the security feature by altering the company in TallyPrime.

In this section

Set/Alter Security Control

Set up security

  1. Press Alt+K (Company) > Alter.
  2. Enter security details:
    1. Set Control User Access to Company Data to Yes.
      If you do not see this option, press F12 (Configure) > set Use User Access Control to Yes.
    2. Provide the Username (Administrator) and Password: The credentials you specify here must be entered every time you open your company.
      Company's Security Settings
      As you press Enter, the following warning message appears:
      Warning Message for User Credentials
  3. Accept the changes. As always, you can press Ctrl+A to save.
    For more information, click here.

  4. Use Tally Audit features: Tally Audit allows the administrator or an auditor profile user to track changes in the accounting information.
  5. Disallow opening in educational mode: Set this option to Yes, if you do not want the company to be opened in the educational mode. In the educational mode, you can record transactions only on the first and last day of a month.
  6. On accepting the company creation screen, if you have specified TallyVault password, TallyPrime prompts you to enter the user name and password.

On accepting the company creation screen, if you have specified TallyVault password, TallyPrime prompts you to enter the user name and password.

Alter security

Once you have saved the company, you can alter the credentials anytime later, from:

  • Company alteration screen
  • Users and Passwords menu

To alter security from the company alteration screen:

  1. Press Alt+K (Company) > Alter.
  2. Select the company, if multiple companies are loaded.
  3. You can change the administrator name, password, or both.
    1. To alter only the name of administrator:
      • Security > enter a new Username (Administrator).
      • Enter the existing password in all the password fields.
    2. To alter only the password:
      • Security Control > enter the existing Username (Administrator).
      • Enter a new Password, and repeat it in the Repeat Password field.
      • Enter the Old Password.
    3. To alter both the administrator name and the password
      • Enter a new Username (Administrator) and a new Password.
      • Enter the Old Password.

To alter security from the User and Passwords menu

  1. Gateway of Tally > Alt+K (Company)
  2. Change the username or password.
    • Change User: Select Change Username and provide a different username.
    • Change Password:
      1. Enter the Old password.
      2. Enter a New Password, and repeat it in the Confirm New Password field.

When altering security setting, providing the old password ensures that an authorised user is attempting to alter the credentials of the company.

Remove Security Control

  1. Press Alt+K (Company) > Alter.
  2. Set Control User Access to Company Data to No.
  3. Enter the existing password in the Current/Existing Password field.
  4. Accept the changes. As always, you can press Ctrl+A to save.

TallyVault

Based on your business environment, if you want to maintain privacy of the company that you have created in TallyPrime, use TallyVault. Providing a TallyVault password encrypts your company and all the transaction details, including the company name. Next time you open your company, you will need to first enter this password to view
the company name and other details.

TallyVault is an enhanced security system that allows encryption of your company data. Encryption involves converting normally accessible Tally information into unrecognizable information, which can only be reconverted by authorised persons.

You can set a TallyVault password:

  • On the Company Creation screen, while creating the company in TallyPrime.
  • (If you had already created a company without a TallyVault password) By selecting the TallyVault option from the Company menu: Alt+K (Company) > TallyVault.
    You can also alter the TallyVault password from the same screen.

For more information, refer to TallyVault under Access Control and Security.

Note: If you have specified credentials for security control and the TallyVault password, next time you open the company, you will need to first enter the TallyVault Password and then the security credentials.

Use Currency as Applicable for Transactions | Set Up Base Currency

Currency details for your company are pre-filled based on the country that you have selected during company creation. If your business is set up in India, the base currency is by default set to Rupees. All the transactions that you record and the reports that you view in TallyPrime will show the values in the base currency that is set for your
company. If your business is set up in India but you have customers from a different country, you can specify the base currency as applicable for that country.

  1. Press Alt+K (Company) > Alter.
  2. Base Currency Symbol: For example, ₹ for Rupee, AED for United Arab Emirates (UAE), and so on.
    • Based on the currency you choose, you can update the remaining options applicable to that currency. For example, if you have chosen AED as the base currency:
      • Update the Formal name to Dirham.
      • Set Suffix symbol to amount to Yes, because the AED always appears after the number (for example, 5000 AED).
  3. Similarly, update the other options as applicable for the currency chosen.
    Set Base Currency for Company
  4. Accept the screen. As always, you can press Ctrl+A to save.

For more information, click here.


    • Base currency symbol: Based on the Country you selected, the base currency symbol is filled with the currency applicable for that country. If your business deals with a different base currency, update this field accordingly.
    • Formal name: The name of the currency specified.
    • Suffix symbol to amount: In the case of certain countries, the currency symbol is placed after the numeral. For example, Yen is specified after the number as 5000 Yen.
    • Add space between amount and symbol: Enable this option if you require space between amount and symbol.
    • Show amount in millions: This is useful for companies, which require reporting of the financial statements in millions.
    • Number of decimal places: This is set to 2, by default. However, it can be specified up to 4 places.
    • Word representing amount after decimal: The name of the decimal portion of amount appears based on the country selected. For example, if India is selected as the country and Number of decimal places is entered, then paisa appears by default.
    • No. of decimal places for amount in words: You can specify the number of decimal places for printing the amount in words. This number should be equal to or lesser than the number specified in the field No. of decimal places for amount in words.

Multi-currency
If your business has customers in more than one country or you need to maintain transactions in different currencies, you can use multiple currencies in TallyPrime. For more information, refer to the Multi-currency topic.

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