What is Tally? Everything You Need to Know

Tally software is a popular accounting and business management software used by businesses of all sizes across the world. It is a comprehensive and easy-to-use software that offers a range of features, including accounting, inventory management, payroll and HR management, GST and tax compliance, and more.

Contents

1. Brief overview of Tally software
2. The evolution of Tally software
3. Overview of the features that make Tally software popular
4. Tally Add-Ons and Customization
5. Tally and E-commerce
6. Tally Versions Over the Years
7. What's New in Tally ERP 9
8. Skills Required to Use Tally
9. Advantages of Using Tally
10. Disadvantages of Using Tally
11. Tally Data Backup and Recovery Options
12. Tally and Mobile
13. Tally Support and Community
14. Alternatives to Tally
15. How to Get Started with Tally
16. Conclusion

Brief overview of Tally software

Tally software is an accounting software widely used by small and medium-sized businesses in India and other parts of the world. It was developed by Tally Solutions, a Bangalore-based software company, and is known for its comprehensive range of accounting, inventory management, payroll and HR management, and GST and tax management features.

The primary purpose of Tally software is to help businesses maintain accurate financial records, manage their inventory and payroll, and comply with local taxation laws. Tally is designed to be easy to use, with a user-friendly interface that allows users to enter financial transactions and manage accounts with ease.

Tally software is particularly popular in India, where it has been widely adopted by businesses of all sizes and types. The software is also used in other countries, such as Bangladesh, Sri Lanka, the Middle East, and some parts of Africa. Tally has become an essential tool for small and medium-sized businesses in these regions, helping them streamline their accounting and financial management processes and grow their businesses more efficiently.

The evolution of Tally software

Tally software has come a long way since its inception in 1986, when it was first introduced as a simple accounting software. Over the years, Tally Solutions has released various versions of the software, each with new features and improvements that have made it more powerful and versatile.

In 1990, Tally 3.0 was released, which introduced multi-currency accounting and inventory management features. In 1999, Tally 4.5 was launched, which was the first version to support Value Added Tax (VAT) computation.

The biggest milestone in Tally's history was the release of Tally ERP 9 in 2009. This version of the software was a major overhaul of the previous versions, introducing a completely new interface and a range of new features, such as payroll management and tax compliance. With Tally ERP 9, businesses could manage their entire operations, from accounting to inventory management, in a single software.

Since then, Tally Solutions has continued to improve and refine the software, releasing regular updates and new versions. Tally ERP 9 has been updated several times since its release, with each update bringing new features and enhancements to the software.

Today, Tally software is used by millions of businesses around the world, helping them manage their finances and grow their businesses more efficiently. Its evolution over the years is a testament to the software's versatility and the dedication of Tally Solutions to improving and expanding its functionality.

Overview of the features that make Tally software popular

Tally software is known for its comprehensive range of features, which make it a popular choice for small and medium-sized businesses. Some of the key features of Tally software include accounting, inventory management, payroll and HR management, and GST and tax management.

The accounting feature in Tally software allows businesses to manage their financial transactions with ease. With features such as voucher entry, ledgers, balance sheets, and cash flow statements, businesses can keep track of their financial transactions and get a real-time view of their financial position.

The inventory management feature in Tally software enables businesses to manage their inventory effectively. With features such as stock group and category creation, stock valuation, and stock transfer, businesses can keep track of their inventory levels and optimize their stock management processes.

The payroll and HR management feature in Tally software allows businesses to manage their employee data and payroll efficiently. With features such as employee information management, attendance tracking, and payroll processing, businesses can automate their HR and payroll processes, saving time and effort.

The GST and tax management feature in Tally software helps businesses comply with local taxation laws. With features such as GST invoicing, GST returns filing, and tax computation, businesses can ensure that they are meeting all their tax obligations and avoiding penalties.

These features, combined with the user-friendly interface and easy-to-use tools, make Tally software a popular choice for businesses looking for a comprehensive accounting and financial management solution.

Tally Add-Ons and Customization

Tally software provides a range of add-ons and customization options that businesses can use to tailor the software to their specific needs. These add-ons and customization options allow businesses to extend the functionality of Tally software and automate more of their processes, which can lead to increased efficiency and productivity.

One of the most popular add-ons for Tally software is the Tally Integrated Network, or TIN. TIN is a feature that allows businesses to integrate Tally with other software applications, such as CRM systems or inventory management systems. This integration can help businesses streamline their operations and reduce the time and effort required to manage data across different applications.

Another popular add-on for Tally is the TallyShop. The TallyShop is an online marketplace where businesses can find and purchase add-ons and customizations for Tally software. The TallyShop offers a range of add-ons and customizations, including reporting and analytics tools, payroll and HR management add-ons, and inventory management add-ons.

In addition to these add-ons, Tally software also provides customization options that allow businesses to tailor the software to their specific needs. For example, businesses can customize Tally reports to include only the information that is relevant to their operations. They can also create custom forms and fields to track specific data points.

Customization options are particularly useful for businesses that have unique requirements that are not addressed by the standard Tally software features. By customizing Tally software, businesses can create a tailored solution that meets their specific needs and requirements.

Overall, Tally add-ons and customization options can help businesses optimize their operations and achieve greater efficiency and productivity. By extending the functionality of Tally software and tailoring it to their specific needs, businesses can gain a competitive edge and achieve their goals more effectively.

Tally and E-commerce

Tally software can be integrated with e-commerce platforms to streamline online sales and manage inventory. E-commerce businesses that use Tally can track and manage inventory levels, view sales data and generate invoices automatically, thereby reducing the time and effort required for manual data entry.

One of the key advantages of using Tally for e-commerce is that it can be integrated with popular e-commerce platforms such as Shopify and Magento. This integration allows businesses to easily sync their sales data, inventory levels, and other important data between their e-commerce platform and Tally. This streamlines the entire order fulfillment process, from order processing to inventory management, and can help businesses make more informed decisions about their products and inventory.

Tally also offers several add-ons that can be used to further customize the software for e-commerce businesses. These add-ons include modules for integrating with payment gateways, shipping providers, and other third-party services. This enables businesses to streamline their entire online sales process and manage all aspects of their e-commerce operations from within Tally.

In addition to e-commerce integrations, Tally also offers features for managing payroll, accounts receivable, accounts payable, and more. These features can be customized to meet the unique needs of any business, whether they are in the e-commerce space or not.

Tally Versions Over the Years

Over the years, Tally software has undergone significant changes and updates, introducing new features and functionalities with each new release. Here's a brief overview of each Tally software version released over the years:

• Tally 3.0 (1990): This version of Tally software introduced multi-currency accounting and inventory management features, allowing businesses to manage their finances in multiple currencies.

• Tally 4.5 (1999): Tally 4.5 was the first version of Tally software to support Value Added Tax (VAT) computation. This was a significant feature for businesses operating in regions where VAT was applicable.

• Tally 5.4 (2001): Tally 5.4 was a significant update, introducing a host of new features such as payroll management, job costing, and support for multiple companies.

• Tally 6.3 (2003): Tally 6.3 was a major update, introducing a completely new interface and several new features, such as support for excise for manufacturers, cheque printing, and audit features.

• Tally 7.2 (2005): Tally 7.2 was a major release, introducing a range of new features such as email support, invoicing, and advanced payroll management features.

• Tally 8.1 (2006): Tally 8.1 introduced new features such as support for multiple languages, user-defined fields, and support for multiple stock valuation methods.

• Tally 9 (2006): Tally 9 was a significant release, introducing a range of new features such as support for banking transactions, cost center tracking, and advanced inventory management features.

• Tally ERP 9 (2009): Tally ERP 9 was a major overhaul of the previous versions, introducing a completely new interface and a range of new features, such as payroll management, tax compliance, and GST support.

Since the release of Tally ERP 9, Tally Solutions has continued to update and refine the software, releasing regular updates and new versions. Each new version has brought new features and enhancements, improving the software's functionality and usability.

What's New in Tally ERP 9

Tally ERP 9 is the latest version of Tally software, and it comes packed with a range of new features and enhancements. Here's a summary of what's new in Tally ERP 9:

• Enhanced GST Compliance: Tally ERP 9 includes updated GST return forms, and it makes it easier for businesses to comply with the latest GST regulations.

• Payroll Management: Tally ERP 9 includes advanced payroll management features, including support for Employee Provident Fund (EPF), Employee State Insurance (ESI), and Professional Tax.

• Improved Data Security: Tally ERP 9 includes advanced data security features, such as support for data encryption and access control.

• Remote Access: With Tally ERP 9, users can access their Tally data remotely, making it easier to manage their finances and operations from anywhere.

• Advanced Inventory Management: Tally ERP 9 includes advanced inventory management features, such as support for batch and expiry management, multi-currency support, and inventory tracking.

• Multi-User Access: Tally ERP 9 allows multiple users to access the same data simultaneously, making it easier for teams to collaborate and work together.

• Invoicing and Billing: Tally ERP 9 includes advanced invoicing and billing features, including support for e-way bills, automatic invoice numbering, and customizable invoice templates.

• Reporting and Analytics: Tally ERP 9 includes a range of reporting and analytics features, allowing businesses to generate custom reports and analyze their financial data in real-time.

These are just some of the new features and enhancements in Tally ERP 9. With each new update, Tally Solutions continues to refine and improve the software, making it an essential tool for businesses of all sizes.

Skills Required to Use Tally

Tally is a popular accounting software used by businesses of all sizes. While Tally is designed to be user-friendly and intuitive, there are certain skills and knowledge that can make it easier to use the software effectively.

• Basic Accounting Knowledge: To use Tally, it's important to have a basic understanding of accounting principles, such as debit and credit, balance sheets, and profit and loss statements.

• Computer Literacy: Tally is a computer-based software, so it's important to have basic computer literacy skills, such as the ability to use a mouse and keyboard, navigate Windows or Mac operating systems, and use basic software applications.

• Data Entry Skills: A key aspect of using Tally is data entry. Users should have good typing skills and the ability to enter data accurately and efficiently.

• Attention to Detail: Tally requires a high level of attention to detail to ensure that data is entered correctly and accounts are reconciled properly.

• Problem-Solving Skills: Tally users should be able to identify and troubleshoot common issues that may arise, such as data entry errors, incorrect reports, and software glitches.

• Understanding of GST and Taxation: If using Tally for GST and tax management, it's important to have a basic understanding of GST and tax regulations, as well as the ability to navigate the Tally software to manage these processes.

• Tally Training: While Tally is designed to be user-friendly, training can help users better understand the software and its features. Tally training can be found online, or through Tally's official training partners.

Overall, while it's not necessary to have a degree in accounting or computer science to use Tally, having some basic skills and knowledge can help users get the most out of the software.

Advantages of Using Tally

Tally software offers a range of benefits for businesses of all sizes, including streamlined accounting, inventory management, GST and tax compliance, and payroll and HR management. Some of the advantages of using Tally software include:

• Streamlined Accounting: Tally offers a range of accounting features that make it easy to manage financial records. With Tally, businesses can track and manage transactions, generate financial reports, and automate routine accounting tasks. This ensures that businesses can maintain accurate financial records, make informed decisions, and comply with accounting standards.

• Inventory Management: Tally software offers an efficient inventory management system that helps businesses track stock levels, manage purchase orders, and generate reports on stock movements. This ensures that businesses can manage inventory effectively, reduce wastage, and keep stock levels optimal to meet customer demands.

• GST and Tax Compliance: Tally software offers built-in GST and tax compliance features that enable businesses to comply with tax regulations. Tally automates tax calculations and generates reports required for filing tax returns. This feature saves time and reduces the risk of errors, ensuring that businesses can comply with tax regulations.

• Payroll and HR Management: Tally offers payroll and HR management features that help businesses manage employee records, attendance, and payroll. With Tally, businesses can generate payslips, calculate and deduct taxes, and manage employee leave records. This ensures that businesses can manage their workforce effectively, comply with labor laws, and avoid penalties.

• Ease of Use: Tally software is user-friendly and easy to use. With a simple and intuitive interface, businesses can quickly learn to use the software, reducing the need for extensive training. Additionally, Tally offers comprehensive documentation and customer support to assist users in resolving issues quickly and efficiently.

Overall, the advantages of using Tally software are clear. Tally offers businesses an all-in-one solution for accounting, inventory management, GST and tax compliance, and payroll and HR management. Tally makes it easy for businesses to manage their finances, comply with regulations, and make informed decisions.

Disadvantages of Using Tally

While Tally software offers a range of benefits, it also has some disadvantages that businesses should be aware of. Some of the disadvantages of using Tally software include:

• Limited Cloud Support: Tally software has limited cloud support, which means that users may face challenges when trying to access data remotely. While Tally offers a cloud service, it is not as robust as some other cloud-based accounting solutions. This can be a significant disadvantage for businesses that require flexibility and remote access.

• Steep Learning Curve: Tally software has a steep learning curve, which means that users may require extensive training to master the software. While Tally offers comprehensive documentation and customer support, some users may still find it difficult to learn the software quickly. This can be a significant disadvantage for businesses that need to onboard new users quickly.

• Limited Third-Party Integration: Tally software has limited third-party integration capabilities, which means that users may face challenges when trying to integrate Tally with other software solutions. While Tally offers an API for integration, it may not be as robust as some other accounting software solutions. This can be a significant disadvantage for businesses that rely on a range of software solutions for their operations.

• Limited Customization: Tally software offers limited customization options, which means that businesses may not be able to customize the software to meet their specific needs. While Tally offers a range of features, some businesses may require additional functionality that is not available in Tally. This can be a significant disadvantage for businesses that require highly customized software solutions.

Overall, while Tally software offers a range of benefits, it also has some disadvantages. Businesses should carefully consider these disadvantages before deciding whether to implement Tally software.

Tally Data Backup and Recovery Options

Data backup and recovery are critical aspects of any software solution, and Tally software is no exception. Tally offers a range of options for backing up and recovering data, including:

• Local Backup and Restore: Tally software allows users to create a local backup of their data on their local storage device, such as a hard drive or USB drive. Users can then restore this backup in case of data loss or corruption. Local backup and restore is a straightforward and convenient option for users who prefer to keep their data on-site.

• Online Backup: Tally software also offers an online backup feature, which allows users to store their data on a remote server. This is an ideal option for users who require remote access to their data or who want to keep their data off-site for security reasons. Online backup ensures that data is secure and always available, even in the event of a system failure or disaster.

• Cloud Backup: Tally software also offers cloud backup, which is similar to online backup but uses cloud-based storage solutions such as Google Drive, OneDrive, or Dropbox. This is an ideal option for users who require secure and scalable backup solutions that can be accessed from anywhere. Cloud backup also ensures that data is always available and can be easily restored in case of data loss or corruption.

In addition to these backup and recovery options, Tally software also offers a range of tools and features to help users manage their data effectively. These include audit trails, version control, and data synchronization. By using these features, users can ensure that their data is secure, up-to-date, and easily recoverable in case of any issues.

Tally and Mobile

Tally is not only available on desktop and laptop computers but also on mobile devices. Tally has made significant strides in its mobile offerings, allowing users to access their financial data and perform various tasks from anywhere at any time.

Tally has an official mobile app, the Tally Mobile app, which is available for both Android and iOS devices. The app offers users the ability to access various Tally features, including viewing account balances, transactions, and vouchers. Users can also create and manage invoices, generate reports, and even record transactions offline.

One of the standout features of the Tally Mobile app is its ability to sync data between the mobile app and the desktop software. This allows users to access their up-to-date financial data on the go and continue working on it on their desktop or laptop when they return to the office.

In addition to the official Tally Mobile app, there are also third-party mobile apps that integrate with Tally software. These apps offer additional features and customization options that cater to specific business needs.

Overall, Tally's mobile offerings are a great way to stay connected and up-to-date on financial data while on the go. Tally's mobile app and integration with third-party mobile apps make it a versatile tool that can adapt to the needs of any business.

Tally Support and Community

Tally Solutions provides extensive support for its software, including customer support, online forums, and a knowledge base. The company offers phone and email support, and customers can also submit support tickets through the Tally Solutions website.

Tally also has a large user community, which includes both official and unofficial forums, blogs, and social media groups. These resources can be helpful for finding solutions to common issues, as well as for getting advice on best practices and tips for using Tally more effectively.

In addition to these resources, Tally also offers training and certification programs for both individuals and businesses. These programs provide users with a more in-depth understanding of the software, and can help them to become more proficient in using Tally for their specific business needs.

Overall, the combination of support, community, and training resources make Tally a user-friendly and accessible software for businesses of all sizes. Whether you're just getting started with Tally, or you're a seasoned user looking to expand your knowledge and skills, there are plenty of resources available to help you get the most out of this powerful accounting and ERP software.

Alternatives to Tally

While Tally software is a popular choice for accounting and inventory management, there are several alternatives available in the market. Here are some of the popular alternatives to Tally:

• QuickBooks: QuickBooks is a cloud-based accounting software that offers a range of features such as invoicing, payment tracking, and financial reporting. It is designed for small and medium-sized businesses and offers a user-friendly interface that is easy to navigate. QuickBooks is a popular alternative to Tally, particularly for businesses that require cloud-based solutions.

• Zoho Books: Zoho Books is another popular cloud-based accounting software that offers features such as invoicing, expense tracking, and bank reconciliation. It is designed for small and medium-sized businesses and offers an easy-to-use interface that is customizable. Zoho Books is a good alternative to Tally, particularly for businesses that require advanced reporting and analytics.

• Busy: Busy is a desktop-based accounting software that offers features such as invoicing, inventory management, and financial reporting. It is designed for small and medium-sized businesses and offers a range of customization options. Busy is a good alternative to Tally, particularly for businesses that require advanced inventory management and reporting.

While each of these alternatives offers a range of features and benefits, choosing the right software depends on your business needs and budget. It's important to evaluate each option carefully and compare the features, pricing, and customer support to make an informed decision.

How to Get Started with Tally

If you're new to Tally software, getting started can seem a bit daunting. Here's a step-by-step guide to help you get started with Tally:

• Installation: The first step is to download and install Tally software on your computer. You can download Tally from the official Tally website or purchase it from an authorized Tally partner.

• Setup: Once you've installed Tally, you'll need to set it up by creating a company and configuring the basic settings. To create a company, click on the "Create Company" option on the startup screen and enter the company details such as name, address, and financial year. You can then configure the basic settings such as the currency, units of measurement, and tax details.

• Navigation: Tally has a user-friendly interface that is easy to navigate. The main screen displays the various modules such as accounting, inventory, and payroll. To access a module, simply click on the module icon. Once you've accessed a module, you can use the various options and menus to perform tasks such as creating vouchers, managing inventory, and generating reports.

• Basic Usage: To get started with Tally, it's important to understand the basics of accounting and inventory management. Tally offers a range of tutorials and user guides that can help you learn how to use the software effectively. You can also enroll in a Tally training program to gain a deeper understanding of the software and its features.

Getting started with Tally is relatively easy, and with a bit of practice, you'll be able to use the software effectively for your business needs. The key is to take the time to learn the basics and understand how the software can help streamline your accounting and inventory management processes.

Conclusion

In conclusion, Tally software has become a popular accounting software that is widely used in businesses of all sizes. It offers a wide range of features and functionalities that make it easy for businesses to manage their finances, inventory, and compliance requirements. Its ability to integrate with other software and services helps to streamline operations and make it an indispensable tool for business owners and accountants.

Tally ERP 9, the latest version of the software, has several advanced features that make it even more powerful, including improved payroll and HR management, enhanced GST and tax compliance, and better data security and backup options. While Tally has its drawbacks, including a steep learning curve and limited cloud support, it remains one of the best accounting software solutions on the market.

For those looking to get started with Tally, it is important to first determine the needs of your business and then select the appropriate version of Tally. From there, it is essential to invest in training to ensure that users are able to leverage the full capabilities of the software. With the right support, Tally can be a game-changing tool that helps businesses of all sizes to streamline their operations and achieve their financial goals.

Tally software is an excellent choice for businesses looking to streamline their accounting and inventory management processes. Its wide range of features and functionalities, combined with its ease of use and ability to integrate with other software and services, make it an indispensable tool for business owners and accountants. While there are other alternatives to Tally, it remains one of the most popular and widely used accounting software solutions on the market.