10 Tips must know to avoid failure in Tally

1.Distinguish your Personal Transactions from business Accounts.

Personal Transactions made by the proprietor for his personal benefits. 

Personal expense payments such as settling dinner bills, Personal credit card payment or non-businesses payments.

Business Transactions made by employees and proprietor on behalf of company for trade and company benefits.

Collecting source documents on company transactions and recording is the business accounts

Proprietor Personal expenses can be treated as Drawing or salary for the designation in which proprietor hold.

Tally Prime helps in best ways to manage your business’ finances in the most organised way possible is by separating personal expenses with your business expenses.

2. Avoid cash transactions wherever possible

Expenses paid in cash are very difficult to track, manage and also time-consuming for preparing cash vouchers.

Therefore, all business transactions were advised to make either Cheque, e- Banking or digital payments. so that all the expenses are tracked, automatically by bank.

Tally Prime provides advanced banking feature for recording and handling all type of banking activities like Cheque printing, Cheque register, Bank Reconciliation, Deposit Slip, Payment Advice, and Post-Dated Summary.

3. Bank Reconciliation

Benefits of Bank reconciliation

• It helps in maintaining good standard of accounts
• It helps us to arrive accurate balance
• It helps in detecting errors in accounts
• It prevents theft or frauds.

The bank statement balance is cross checked with the transactions recorded in the Company books of accounts.

• Matching Transactions are reconciled by just mentioning bank dates.
• The excess transactions in company books can be removed or wait until it happens in bank.
• The excess transactions in bank statement are recorded in company books and reconciled.

4. Set Proper Accounting Period

To view any financial statement reports in Tally Prime for any time period such as Weekly, Monthly, Quarterly or Annually use Alt + F2 to set from date & to date.

Before all of this check or Set the Accounting Period in Gateway of Tally Prime menu by pressing Alt + F2.

If a company data of two financial years are maintained in one Tally Prime company, need to view any financial report from past financial year need to set the accounting period over two financial years.

In case,

• Two years Company data from April 2019 to March2021
• Current Accounting period is set as 1^st April 2020 to 31^st March 2021
• Required to see a report in January 2020
• Need to set the accounting period as 1^st April 2019 to 31^st March 2021

5. Cross check your voucher entries with source documents

After recording the transactions, Tally Prime enable the user to view, cross check and edit these entries in day book.

Open Day Book for display menu and cross check the no. of entries, amount and date of all entries by comparing with source documents.

Note: Source Documents like Purchase invoice, sales invoice, Bank Statement, Payment vouchers, Receipt note books and others.

6. Rectify accounting errors with accounting rules and regulations

As Tally Prime maintain accounting rules of recording transactions with two aspects Debit and credit.

Thus any error occurred while making entries can be rectified as per accounting rules and regulations.

• Omission of entries can be rectified by cross checking no. of entries recorded in Day Book.
• Entries with wrong posting can be identified and rectified using ledger balance.
• Ledgers with wrong under value can be rectified from balance sheet and profit & loss account.

7. Avoiding duplication of ledger accounts

Mistakes are quite happening in accounts. Tally Prime helps to identify and avoid creation of duplicate ledger accounts.

While creating a ledger or any masters as an existing one, Tally Prime prompt error message and alerts the user.

However, if any duplicate ledgers are created and handled in accounting can be identified and rectified easily.

If we have purchased goods from “Supplier A” on credit for Rs. 10,000. Purchase Ledger is Debited and “Supplier A” Ledger is Credited.

While making a payment to that “Supplier A” for Rs. 10,000. Wrongly created a new ledger as “A Supplier” and this “A Supplier” ledger is debited and cash ledger is credited.

In balance sheet, under Sundry Creditor two ledgers can be seen in opposite sides with balance of Rs. 10,000.

Sundry Creditor
Supplier A                10,000
A Supplier           (-) 10,000

Therefore, the negative value ledger is duplicate which is created by mistake. To rectify this, the payment entry can be edited by selecting “Supplier A” Ledger on “A Supplier” Ledger.

8. Create Ledger Accounts with correct Under Group

User need to understand and identify the nature of ledger what it represents and why it is needed to be recorded in accounts.

After understanding the nature of ledger, user can choose the accounting groups in Tally Prime as under value.

There are 28 accounting groups in Tally Prime with 15 primary groups and 13 sub-groups.

Here 13 sub-groups are classified under 15 primary groups with unique purpose.

User need to choose the correct under groups either from 15 primary groups or 13 Sub-groups as per their requirements.

9. Use Alt + C to Create any Accounting master

At the time of recording a voucher entry, any masters can be created using Alt + C.

Press Alt + C:

• In the ledger field, to create a ledger with correct under group.
• In Stock Item field, to create a stock item with correct under and units.
• In Stock Group field, to create a stock group with under primary or a Sub stock group with under an another stock group.
• In unit field, to create unit of measures with required symbol, formal name and decimal places.
• In bank reconciliation screen, to create a voucher entry.

10. POS invoice

Point of Sales invoice (POS Invoice) voucher type can be created for making fast sales entries and with different payment methods.

Such invoices can be used in shopping complex, malls and many textiles showrooms for making sales invoice quick and ease.

POS with many Payment methods,

• Gift Vouchers: to accept and provide discount to customer based on Discount coupons.
• Credit / Debit card: for accepting credit card / debit card / Finance card / digital payments from customers.
• Cheque: to accept Cheque or DD from customer as payments.
• Cash: for accepting cash from customers.