Welcome to our first to Tally tutorial
In this tutorial, we are going to learn how to create a company file in Tally. Before we proceed we need to make sure that Tally is installed in your computer. Tally is a premium software, this means that you need to buy the software in order to use it. However, as is common with most software, there is a trial version which runs for about 30 days.
You can get the trial version using this link https://tallysolutions.com/download/
Once the trial version is over, you need to buy a license in order to continue using Tally.
For more information on how to install Tally in your computer, see our tutorial on how to install tally in your computer
Assuming that everything is now setup, let’s begin the company creation procedure.
- The first step as always is to open the Tally software. The screen that appears should be as the one shown below.
- Select the option “Create Company” and double click or press the enter key on your keyboard.
NB: A point to note here is that in Tally, the letters highlighted in orange are like shortcut keys. For example when “Creating Company”, the letter highlighted in orange is “C” .Therefore a faster way of selecting the option in to press the letter on your keyboard, in this case “C”
- Once you select the option, you should see a window like the one shown below.
Now let’s look at each of the fields that need filling
- Directory – here you select the location where you want to store your company file. By default the location is usually C:\Tally\Data. But you can change this location to the location you prefer. Once you input the location, press enter.
- Name : now input the name of the company
- Mailing address – this is the mailing address, usually the same as the name of the business, but you can change it if you want it to be different
- Address– this is not a mandatory field, but you can type the address if you want to indicate the address of the business.
- Statutory compliance – If you want to adopt statutory compliance for any country, then select the country, If not just select none. The countries available are usually India, Indonesia, Malaysia, Philippines, Singapore and UK. It is advisable to select none.
- Email – this is also an optional filed, but if you want you can indicate the email of your business
- Currency symbol– Here indicate the symbol of your currency e.g. Kshs, $ etc.
- Maintain– here you choose if you want to be maintaining your Accounts with Inventory with inventory or not. If with inventory, select accounts with inventory, otherwise select Accounts only.
- Financial year from– here you select when your financial year will begin from e.g. 1/1/2018
- Books beginning from – this is usually the same as the financial year beginning from.
- Tally vault password (if any)– here if you want to secure your Tally company file, then type your password.
NB:IF YOU LOSE YOUR PASSWORD,THE YOU LOSE YOUR COMPANY INFORMATION FOR GOOD.
- Next you can choose to use the security control or not. When you choose yes, then you need input the name of the administrator ,and the password
- You can also choose to use the Tally audit features. For more information on these, click on Tally audit features
- From this point, you need to input your base currency information
- Formal name – type in the full formal name of your base currency e.g. Kenya Shilling
- Number of decimal places- by default it is usually 2, but you can change the value if you want
- Is symbol suffixed to amounts – choose yes means that the symbol will appear in all the figures that are in your generated reports. This could lead to a lot unnecessary information. It is advisable to set this to “NO”.
- Symbol for decimal portion– here you indicate the name of your decimal symbol e.g. cent
- Show amounts in millions– choose this setting to be yes. The amounts displayed will be as follows 1,000,000
- Put a SPACE between amount and symbol – if your choice in step 3 above was ‘YES’, then this should be set to ‘YES’. But either way have this as “YES”
- Decimal places for printing amounts in words– leave this as the default, i.e. 2.
- Once this is done, just press enter. You will a prompt at accept as shown below.
- Just press enter or click yes and wait
This will create your new company file and you are now ready to start entering transaction into the system.
That is how easy it is to create a new company file in Tally. In the upcoming tutorials, we will look at how you use the created company file including posting entries and generating financial reports from Tally.
As always for any queries, comments or compliments, you can write to use via firstname.lastname@example.org.