One of the accounting software most relied upon in India, Tally, is an essential must-have of small businesses to keep their books in order. Tally relieves heavy-duty requirements of book of accounts maintenance and creates a GST compliant invoice to an easy filing of returns. However, to make the best out of Tally, a couple measures should be established. Here in this blog, we check out what are the best Tally practices one should use to keep their accounting error free and efficient to account.
How to Keep Your Chart of Accounts Organized
The basis of your Tally system is your chart of accounts. Sort out ledgers accordingly-distinguish clearly assets, liabilities, incomes and expenses. Never make unnecessary or duplicate accounts in the ledger, and adopt a standard naming style such that information would be well-organized and readable.
Perform routine backup of your data.
Regular data backup forms part of the golden rule of accounting in small business. Tally enables the user to take back up data without difficulty and this ought to be a habit whether daily or weekly. This limits the danger of losing data because of system failure, corruption, or disregardful destruction.
Make GST Compliant
Tally Prime facilitates automated GST calculation, filing of returns and issuance of invoices. Ensure that there are proper GST rates on your stock items and ledger accounts. Have the GST reconciliation and error detection tools handy so that you remain compliant and lose no appeasing penalties.
Wisely Use the Features of Inventory Management
Inventory management Tally has provided a variety of tools that may be used by small businesses dealing with products to manage their inventory, reorder levels and valuation procedures. Separate the stock groups appropriately, assign pertinent tax fields to such groups, and review movement reports in line with strengthened procurement planning.
Monthly Reconciling of Bank Statements
Tally has bank reconciliation, which means your books will be updated to what you have in the bank. Compare the entries of your ledger with the bank statements using the reconciliation tool that helps you right away to see the bounced cheques, omitted entries or unauthorized payments.
Security & Permissions – Users Roles
Tally provides the multiple user access with the level of permission. To small companies, this is essential to eliminate unwarranted alterations or mistakes. Assign the roles of the users diligently- giving accountants, managers and assistants the ability to access only the functions that they require.
Frequent auditing and Reviews of Reports
It should be your routine to check the financial statements of the company as Profit & Loss Account, Balance Sheet and Cash Flow Statement on a monthly basis in Tally. The reports can assist in monitoring business health and also detecting the leakages in cash or overspending areas early enough.
Tailoring Tally to meet your Business Requirements
Tally is a free application easily extended by means of Tally Definition Language (TDL). Small businesses can collaborate with Tally partners to make selected adds on to the reports, invoices templates or ways of working that facilitate operations without upgrading to more costly ERP systems.
Continue to be in compliance and due dates
Tally generates compliance reports on GST, TDS amongst others regulatory returns. Keep the due date tracker and create the necessary returns within the necessary time with reminders and alerts. No late filing would result in late fees, legal hassles and save face of your business.
Staff Tally Training
Ensure that your accounting personnel is oriented on using an updated version of Tally and in particular Tally Prime. The most fundamental mistakes such as wrong entries in ledgers or improper use of the tax code may influence the accuracy of reporting. There are online free resources on Tally training and certification and they must be used.
Final Thoughts
Tally is not a mere bookkeeping software but a full fledged financial management of small business. These best practices will allow you to keep your records clean, compliant, and accurate, save your time and pay more attention to business development. Tally is simpler to harness than many of the accounting tools, and whether you run a startup or a company that is expanding, you could make your business decisions much more successful.
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