What is Tally ERP 9 & How to use Tally ERP 9 Software?

Published by Rahil Jain at June 13, 2023

In this article, we’ll find out about Tally ERP 9, its features, versions, and How to use Tally ERP 9 Software.

What is Tally ERP 9?

Tally ERP 9 is a widely used accounting software in India. For small and medium businesses, it is powerful enterprise software.

Tally ERP 9 is the finest business management tool and GST software, combining function, control, and internal customizability in the best possible way.

How to use Tally ERP 9 Software?

Tally serves as basically digital accounting records. We write accounting entries as debits and credits while maintaining accounts in manual books.

We make entries in Tally in the same manner. So, Tally, how should we proceed? The entire scenario may be compared to the installation of any item of equipment in the workplace.

Step 1 – Installation of Tally ERP 9 Software

Tally software can be purchased and downloaded through the Tally website, or you can contact us. Tally 9 is available for Windows and mobile. Additionally, Tally features an educational mode that you may use to practice using the program without having to buy a license. In this mode, some features are restricted.

Step 2 – Navigation Hardware or Software supports

Tally ERP 9 was developed to be used with a keyboard. Everything in Tally has a keyboard shortcut, even though we can click whatever option we choose. As we mentioned, the key that is typically shown next to each choice is the shortcut. Being proficient with the keyboard will boost productivity.

Also Read: What is JumpCloud? Benefits of JumpCloud

Step 3 – Create a company in the program

To get started using Tally, we’ll need to make a company in the program. Even if we don’t use tally for business purposes, we still need to follow these steps to set up a company:

Step 1: Click “Create Company” on the opening menu.

Step 2: Enter the company information

Type the business name exactly as it appears on financial documents.

Include the business’s postal address, phone number, email, and statutory compliance.

Step 3: Turn on “Auto Backup” to make sure that a backup of all of your work is made in case something were to happen to the original.

Step 4: Select your currency

Step 5: If you’re only using Tally to manage your accounts, choose “Accounts only” from the Maintain menu. If you’re also using Tally for inventory management, choose “Accounts with inventory.”

Step 6: Choose the beginning of your financial year and the publication date.

Step 4 – Machine’s usage

Operations

How to use Tally ERP 9 in Detail

Creating Ledgers

Understanding what ledgers are for: Ledgers in Tally record all of the transactions for that account. One will need to create a ledger for each account that they do business with. Two ledgers are included in Tally by default: “Cash” and “Profit and Loss Account”. We can create as many other ledgers as we need. How to?

Step 1: Open Create Ledger window by following the given direction: Gateway of Tally > Account’s Info > Ledger > Create

Step 2: Select the group. Here we will be required to select as to which group the ledger will be assigned to. Choosing the right group is important, as it will affect how numbers and sales are totalled later

Step 3: Give the ledger a name. Enter a name for your ledger to know what the ledger contains in it without having to open it

Step 4: Enter an opening balance (if any).For Example: If you are creating a ledger for your bank account, this would be the amount currently in it. If you are starting a ledger for the amount owed to a Vendor, the amount you owe would be the starting balance

Creating Vouchers

Understand the purpose of vouchers: It is a document that contains the details of a financial transaction. These are used for all aspects of a business, from sales to deposits. Tally.ERP 9 comes with several of the most popular types of vouchers pre-configured for usage. How to create different vouchers? Step 1: Open the vouchers screen using the following direction: Gateway of Tally > Accounting Vouchers

Step 2: In this step, we can choose the voucher we want to create. Here’s is the list :

F4: Contra	For recording money deposited into or withdrawn from the bank, or for recording any sum transferred between two accounts in the same company.
F5: Payment	This voucher is used for payments made by the business.
F6: Receipts	For recording any income earned by the company (sales, rent, interest, etc.) and for recording the proceeds received from Sundry debtors.
F7: Journal	For recording all adjustment or due entries such as prepaid expense, accrued income etc., For recording purchase of assets for recording Input tax reversal entries, reverse charge entries under GST
F8: Sales	This is used for recording all the sales made by the company
F9: Purchase	This is used for recording all the inventories purchased by the company in the course of business.

Step 3: Enter the mandatory information.
The information needed to complete the voucher will vary depending on the type of voucher we want to create. We will have to typically need to determine which ledger the voucher will be attached to, as well as enter the date and names of any involved parties.

What is Tally ERP 9 & How to use Tally ERP 9 Software?