What is Tally?

Tally is an inclusive, powerful, and user-friendly business accounting software widely used by individuals, small businesses, and initiatives for bookkeeping and financial management. It was first introduced in 1986 by Shyam Sunder Goenka and his son Bharat Goenka.

It is a powerful and multipurpose solution designed to simplify and speed up several day-to-day financial transactions across an enterprise.

Definition

Tally is an ERP accounting software package used for recording day-to-day transactions or data of a business enterprise. It automates and integrates all your business operations, such as purchasing, finance, sales, inventory, and manufacturing.

Facts About Tally

Tally is indeed a confirmed version of financial accounts, whose immense popularity worldwide can be judged by the following figures:

3 million business enterprises use it globally

Use in more than100+ countries

80% share market complete the accounts by using  in India

The company is growing at a CAGR of approximately 25%

Version of Tally

The following data throws light on the journey of Tally since its very first version was released in 1990.

Tally 4.5: 

The first version of Tally was released in 1989, based on MS-DOS.

5.4Tally: 

Released in 1996, the second version is supported by a graphic interface version.

Tally 6.3:

The third version of Tally, released in 2001, is a Windows-based release that supports printing and implementing with VAT (Value Added Tax).

7.2Tally:

It was released in 2005 and incorporates new features of the Statutory Compliance version and state-wise VAT

Tally 8.1:

The next version of Tally was developed with a new data structure and included new topographies of Point of Sale (POS) and Payroll

Tally 9.0:

Released in 2006, it included features such as TDS, FBT, Payroll, E-TDS filling, etc.

EPR 9Tally:

released in 2009; updated with new Goods & Services Tax (GST) features.

Tally Prime:

Released in 2020, it has more straightforward navigation, better user experience, and multitasking features.

What Does Tally Do? System-level Features of Tally

Easy to use

Living up to its motto, Power of Simplicity, it makes accounting as easy as 1-2-3. With proper training, even a user with basic accounting knowledge can operate it professionally.

Power-packed Solution

Tally is powerful. Through automation and digitalization of Accounting and Financial Management tasks, Tally ensures accuracy, saves precious time, and improves productivity.

Multilingual Support

It allows you to maintain accounts and view and print in many languages. It allows you to enter data in one language and convert it into different languages. You can generate invoices, purchase orders, or delivery notes in different languages after entering data for the same.

Bringing together

Tally’s synchronization feature allows transactions maintained in multiple office locations to be updated automatically.

Customization

Whether adding new fields to forms, creating custom reports, or automating specific processes, the customization feature of Tally allows businesses to improve effectiveness and save time.

Data Security

With Tally, business data is safe and well-protected. It also offers a comprehensive security framework, such as password protection, data encryption, and auditing,   to ensure the confidentiality of user data.

Scalability

Tally supports business growth and performance, irrespective of the size of the organization or its industry sector. The capability to add more users and modules as and when needed makes it a flexible and scalable solution.

Remote Access

Using a login ID and password, users from any geographical location can access and operate it securely and comfortably.

Superb Features, Superlative Functionality

Apart from catering to a business’s bookkeeping and invoicing requirements, Tally’s wide-ranging capabilities cover an array of tasks, including banking, inventory, budgeting, payroll, and taxation.

Bookkeeping

Bookkeeping is recording, classifying, and summarising the data in the books of accounts. It updates the process of recording transactions and bookkeeping. It also supports Invoicing & Billing, enables

Inventory Management

Tally makes it easy and efficient to manage inventory. Users can track stock levels, generate orders, and record sales and purchases. It helps businesses manage their inventory levels accurately and avoid overstocking or understocking.

Payroll Management

Using Tally, businesses can manage their payroll processes professionally and obey their country’s labor laws and regulations.

Taxation & Obedience

Tally simplifies the complex process of tax management. From GST to TDS, a business can manage all its tax needs quickly and effectively. This helps businesses ensure compliance with tax laws and avoid heavy penalties.

Bank Reconciliation

Users can reconcile their bank accounts with it, ensuring their financial records match their bank statements.

Budgeting

Tally makes it easy for businesses to set financial goals and track progress. And make up-to-date decisions about their financial approach.

Benefits of Tally for SMEs

SMEs support a nation’s economy, which contributes to the country’s GDP and drives growth and progress.

This is designed to support SMEs in their growth journey. It comes bundled with several innovative features that help SMEs optimize their financial management while being extremely user-friendly.

Accounting, Inventory, and Compliance

Accounting, Inventory, and Compliance are the key areas where SMEs rely on an ERP solution for many tasks. With its easy-to-use interface and superb functionality where complex tasks are concurrently managed in the background, This helps SMEs seamlessly manage accounting, inventory, and business compliance within a single software solution.

Decision Support

Managing cash flow efficiently is a challenge for SMEs, which usually have a hard-up on finances. It provides instant access to records and comes up with insightful estimates and analysis, which helps make informed and timely decisions that can impact future business growth.

GST Filing

Being a GST-ready solution, Tally helps SMEs record business data in GST-compliant formats, thus enabling hassle-free and swift GST filing every month.

Auditing Ability

Itacts as a review tool for obedience as it helps lead regular audits of businesses.

Multi-user Environment

Tally supports a multi-user operating environment. SMEs, which often have multiple units based at different geographical locations,  can capitalize on this functionality to enable their users to work remotely and update the information in real time as soon as any transactions are made.

Tally’s Dominance in the Accounting Software Space

Users looking for accounting software in the market can take their pick from various brands and products. QuickBooks, Zoho, Xero, and SAP are some of the key players competing and aspiring for a more significant market share.

However,  the market dominance of this is simply undisputed; 8 out of 10 users rely on their business and accounting management needs. This is the frontrunner in the accounting software space.

FAQs

What does Tally do?

Tally simplifies and streamlines accounting tasks such as records keeping, accounts receivables and payables management, and bank reconciliation. It can also be use for financial management in organizations, big and small.

Is Tally a good skill?

Yes, indeed. Learning Tally will boost your career prospects and make you an industry-ready employee.

Conclusion.

In conclusion, Tally in accounting is a robust inventory management software widely use by businesses. It simplifies complex financial processes, automates tasks, and provides accurate insights for decision-making.