Merriam Websters defines Tally as a record of money that has been paid and money that has been received, but in today’s scenario, the word means so much more than just that, wouldn’t you agree? It is increasingly becoming indispensable in organisations. In order to grasp the significance of Tally, you must first be sure about the basic concepts.
What is Tally?
We know Tally as an accounting software, used in small and medium business organisations. It performs accounting functions typically associated with such firms. But, Tally is not just an accounting software. After the release of ERP version of Tally, the efficiency and applicability of Tally has widened to a great extent.
Why learn Tally? What are my job prospects if I learn Tally?
In India and all over the world, 90% of Business Enterprises use Tally.ERP 9, and hence, a working knowledge of Tally is in great demand. Once you get the certificate from a Tally institute, it gives you an edge over other competitors for a job.
Even if you are currently employed, learning Tally and obtaining a certificate will improve your chances for a promotion or you may even land a better job. Tally will give a much needed boost to your career by enhancing your knowledge in Accounting, Inventory Management, and Taxation.
Who can learn Tally? Is there an eligibility criteria?
Seeing as it is a computer accounting software, a basic knowledge about both these areas (computers and accounting) is recommended. Any person who has passed their 12th standard can sign up for this course at Tally institutes in their city.
What is this ERP version of Tally?
ERP stands for Enterprise Resource Planning. Tally is system with exemplary accounting features. Apart from this, it also has other business features that an organisation requires. But, it’s efficiency over accounting is incredible which is the core reason for its popularity as an accounting software. It is also suitable for businesses that are just starting out.
What are some basic features of Tally?
Here’s a list of some fundamental features of Tally: (Source)
- Accounting: This is the most popular and the most used features of Tally. This feature is then segmented into several different functions like:
- Credit Note, Debit Note
- Reverse Journal
- Billing: Billing is a crucial part of any business organisation. This is actually kept under the accounting feature, but has several other functions. One of the most fascinating functions of this is that Tally reduces redundancy by creating an accounting entry as soon as you create a billing entry, thus preventing you from duplicating work when dealing with a large amount of data.
- Ratio analysis: When you create vouchers, Tally displays many important ratios, this option is called Ratio Analysis. These ratios are created on the basis of information that you enter during your creation of the vouchers. Among the ratios displayed, a few of the important ones are: Quick Ratio, Debt/Equity Ratio, Inventory Turnover and Current Ratio. This option will help you immensely in taking swift and accurate decisions concerning your business and aid in making appropriate changes.
- Banking: This function was not present in the older versions of Tally, but has been included in ERP 9. Through this function, you can directly create deposit slips, print cheques, payment advice and maintain a cheque register.Tally also provides you a solution for what is perhaps the most tedious job in any organisation – Bank Reconciliation. It helps you to reconcile the bank statements with the books of accounts.
- Inventory: A well maintained inventory helps reduce loss and wastage. Tally is of immense help in this regard, especially if the environment involves manufacturing. You can go one step further to classify inventories with regard to
- Stock items
- Taxation (VAT, TDS, TCS): Not only does Tally calculate the amount of tax that needs to be paid at the end of a particular accounting period (for example: a year) it can also include taxes when performing the function of billing.Tally handles various types of taxes like VAT, Income Tax, Excise Tax, Customs and Service Tax, etc. Tally also calculates your tax with regard to what category your organisation falls under. For example, If you are covered under Audit as per Income Tax Act, 1961 then there are different functions for that also such as Form 3CD, Form 3CA, 44AB Audit, Form 3CB etc.
If you want to learn Tally but are not confident about your grasp over computers, you could enrol for a basic course in computers and refresh your memory. Here’s a list of good computer training institutes in Raipur.