What is Tally And How it is Used

What is Tally And How it is Used

Tally ERP 9 is an accounting software. First, let's understand what software is. Software is a program of the computer that is made for a specific task and accomplishes it in the least amount of time and without errors. If you have to multiply two numbers manually, it will take more time and there will be more chances of errors. But if you use a calculator software on the computer, you save time and there are no errors.

Tally software is made for ERP 9 so that mistakes can be corrected and work can be done in the least amount of time. The meaning of accounting is recording, and this word is made up of two words, "lekha" meaning writing and "ankan" meaning numbers. So, accounting means writing numbers. In any business, transactions can be recorded in Tally ERP 9. Working in Tally is very easy, you just need to learn how to record transactions in Tally. Firstly, understand that learning Tally and becoming an accountant are different. Tally ERP 9 is like any other course you take, but becoming an accountant requires more time.

If you are in the commerce field, you won't have much difficulty learning Tally and becoming an accountant because commerce students understand accounting well. This doesn't mean that those not in the commerce field can't become accountants; they can, but they need to work a little harder. If you have good knowledge of operating a computer, you can easily take the Tally course. Even if your typing speed is normal, you can learn Tally.

How to Download Tally ERP 9:

To download and install Tally ERP 9, first, you need to open Google and search for Tally ERP 9. Click on the first link that appears, which will take you to Tally's official website. Then, click on the download link, and Tally will start downloading. To install Tally ERP 9, simply run the setup in the download folder. It's important not to store Tally ERP 9 in the C drive because if your computer crashes and needs formatting, you'll lose all your data. You can save Tally in any other drive.

After downloading and installing Tally ERP 9, now let me tell you where to start learning Tally. In Tally, we work with accounting. Suppose you have to work on the accounts of a showroom, the question is where to start. First, you need to create the company in Tally, which is very easy. You just need some basic details of the showroom, like the company name, address, phone number, email address, city and state, pin code, financial number, and GST number. By entering these basic details, you can create a company in Tally ERP 9.

What is Financial Year:

Financial Year refers to the period during which businesses calculate their income and expenditure for tax purposes. Just like the English calendar year starts from January 1st and ends on December 31st, similarly, in the business world, individuals involved in some form of business have their own financial year. For them, the financial year starts from April 1st and ends on March 31st. For instance, if we're currently in 2021, the financial year started on April 1st, 2021, and will end on March 31st, 2022. Transactions are accounted for from April 1st, not January 1st.

How to check GST in Tally:

Now, regarding GST (Goods and Services Tax), it's crucial to understand how to check it in Tally. GST was introduced by the Indian government on July 1st, 2017, replacing the previous VAT system. GST stands for Goods and Service Tax, covering both goods and services under its tax purview. Whenever you purchase something from the market, it includes GST. For example, if you buy a mobile phone worth ten thousand rupees, GST is already included in its price. This GST amount goes to the government. If there were no GST, you would only need to pay eight thousand for the phone instead of ten thousand. All government services are funded through these taxes. Every product we buy has a tax component, and we pay taxes to the government every day.

Now, let's delve into the types of businesses. Businesses can broadly be categorized into two types:

Business of Purchase and Sales of Goods: This involves buying and selling goods for profit. For example, electronic shops sell items like ACs, TVs, etc.

Business for Service Providing: This involves providing services for earning profit, such as mobile recharge, telephone recharge, internet recharge, item repairing, hotel services, etc. In this category, goods are neither bought nor sold.

According to the government, businesses whose turnover exceeds forty lakh rupees per year must register for GST. Also, those providing services worth more than twenty lakh rupees in a year must register for GST as well. Therefore, firms dealing with GST need proper accounting.

To register for GST, certain documents are required:

• Aadhar card
• PAN card
• Passport size photo
• Copy of bank passbook
• Mobile number
• Address proof
• Rental agreement
• Name of the firm

These documents are submitted for GST registration, and one or two documents may suffice, depending on the requirement. After applying, a number is provided within three to five days, known as the GST number. The full name of this number is the GST Identification Number (GSTIN), which consists of 15 digits. The first two digits represent the state code, the next ten digits are the applicant's PAN card number, followed by a default 'Z', and the last digit can be anything. This GST number is provided after applying for GST.