What is a Tally used for? | TallyPrime | Features of Tally-Taanitech

TaaniTech
27 Feb, 2025
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The Ultimate Guide to Tally: Features, Benefits, and How to Use It. 

In today’s digital era, businesses rely on accounting software to manage financial transactions, streamline bookkeeping, and ensure tax compliance. These tools help automate processes such as invoicing, payroll, GST filing, and financial reporting, reducing manual errors and improving efficiency. Among the many options available, Tally stands out as a widely used and trusted accounting solution for businesses of all sizes. 

What is Tally?

Tally is one of the most widely used accounting software in India and worldwide. It helps businesses manage their financial transactions, GST compliance, inventory, and payroll efficiently. Whether you're a small business owner or a professional accountant, Tally ERP 9 and TallyPrime offer robust features to simplify financial management.

What is a Tally used for? (Features of Tally) 

1. Accounting & Financial Management Software for Small Businesses

Tally automates bookkeeping, ledger management, and financial reports, ensuring accurate record-keeping.

2. GST Return Filing Software in India

With built-in GST return filing, tax calculation, and e-way bill generation, Tally ensures businesses stay compliant with taxation laws.

3. Best Inventory Management Software for Small Businesses

Businesses can track stock movements, manage warehouse inventory, and automate reordering to maintain a seamless supply chain.

4. Payroll Management Software for Small Business Owners

Tally helps companies manage employee salaries, deductions, and compliance with ease.

5. Banking & Automated Bank Reconciliation in Tally

Tally simplifies bank reconciliation, enabling easy tracking of transactions and automatic bank statement imports.

Benefits of Using Tally Accounting Software

  • Why Tally is the Best Accounting Software for Small Businesses? – Tally’s user-friendly interface makes accounting simple.
  • Is Tally Good for Business Accounting? – Reduces manual errors and ensures data protection.
  • Scalable Business Accounting Software – Suitable for small businesses, startups, and large enterprises.
  • Affordable Accounting Software for Startups – A one-time investment with minimal maintenance costs.
  • How to Automate Financial Reports in Tally? – Saves time by automating financial calculations and reporting.

How to Use Tally for Business Accounting?

  1. How to Install TallyPrime on Windows? – Download and install the latest version of TallyPrime from the official Tally Solutions website.
  2. How to Create a Company in Tally? – Set up your business profile, including company name, financial year, and currency.
  3. How to Set Up Ledgers and Vouchers in Tally? – Create ledgers for assets, liabilities, income, and expenses. Record transactions using different voucher types.
  4. How to Enable GST in Tally for Indian Businesses? – Configure GST settings, input tax details, and generate reports.
  5. How to Generate a Profit and Loss Report in Tally? – Access balance sheets, profit & loss statements, and cash flow reports instantly.

Best Tally Versions for Businesses

  • Tally ERP 9 vs TallyPrime – Which One is Best? – Older version but still popular for GST billing and invoicing.
  • TallyPrime Features and Benefits for Small Businesses – Latest version with enhanced UI and improved features.

How to Use Tally for GST Return Filing Step by Step

  1. Enable GST in Tally

    • Open Tally and go to F11 (Features) > Statutory & Taxation.

    • Enable GST and configure GST details such as state, registration type, and tax rates.

  2. Create GST Ledgers

    • Navigate to Gateway of Tally > Accounts Info > Ledgers > Create.

    • Create CGST, SGST, and IGST ledgers under Duties & Taxes and assign appropriate tax rates.

  3. Record GST Transactions

    • Use Sales and Purchase Vouchers to record GST invoices.

    • Ensure GST is applied correctly based on intra-state (CGST + SGST) or inter-state (IGST) transactions.

  4. Generate GST Reports

    • Go to Gateway of Tally > Display > Statutory Reports > GST.

    • Select GSTR-1 for outward supplies and GSTR-2 for inward supplies.

  5. Export and File GST Returns

    • Export GST returns in JSON or Excel format.

    • Upload the file to the GST portal and submit the return.

How to study Tally?

To study Tally, 

  1. Learn Accounting Basics – Understand ledgers, journal entries, trial balance, etc.
  2. Install Tally – Download Tally Prime or Tally ERP 9 and use Educational Mode for practice.
  3. Explore Tally Interface – Learn company creation, navigation, and settings.
  4. Practice Basic Features – Ledger creation, voucher entry, inventory management.
  5. Learn Advanced Features – GST, payroll, bank reconciliation, reports.
  6. Use Online Resources – YouTube, Udemy, or Tally's official help.
  7. Get Certified – Enroll in Tally certification courses for better job prospects.

Frequently Asked Questions (FAQs)

1. What is Tally used for?

Tally is used for accounting, inventory management, GST compliance, payroll processing, and financial reporting in businesses of all sizes.

2. Which version of Tally is best for small businesses?

TallyPrime is the best choice for small businesses due to its user-friendly interface, automation features, and improved GST compliance.

3. Can I use Tally for free?

Tally offers a free trial version, but the full version requires a paid license for complete access to all features.

4. How do I file GST returns in Tally?

You can enable GST in Tally, create GST ledgers, record transactions, generate GST reports, and export them for filing on the GST portal.

5. Is Tally good for beginners?

Yes, Tally is designed to be user-friendly, and beginners can learn it quickly with online courses and practice.

6. Can I learn Tally online for free?

Yes, several platforms offer free Tally courses with certification, such as Great Learning and TallySchool.

7. What are the benefits of using Tally for businesses?

Tally simplifies financial management, ensures compliance with tax regulations, reduces manual errors, and provides insightful reports.

8. How do I generate a balance sheet in Tally?

Navigate to Gateway of Tally > Display > Financial Statements > Balance Sheet to generate and analyze your business's financial health.

9. Does Tally require an internet connection?

Tally works offline for most functions, but an internet connection is needed for updates, GST return filing, and cloud-based features.

10. Is Tally used internationally?

Yes, although widely popular in India, Tally is used in multiple countries for accounting and financial management.

Conclusion

Tally remains the most reliable and efficient accounting software for businesses of all sizes. Its automation, ease of use, and compliance features make it an indispensable tool for financial management. Whether you are an entrepreneur or an accountant, learning Tally for business accounting can boost productivity and ensure seamless accounting operations.

By integrating Tally into your business operations, you can streamline financial tasks and focus on growth. Stay tuned to Taanitech for more in-depth guides on business software and technology!

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