Beginner

How to create a company in Tally

Posted on by Rishit Shah
create a company in tally
10
Nov

The first thing when it comes to operating Tally is that how to create a company in Tally.

Obviously without this step you cannot move further and do anything in Tally.

Everybody says that creation of company in Tally is so much easy and it actually is.

But there are some of the important aspects hidden behind the creation of the company that are very much important for you to know.

Full video is at the end of the post.

If you want to read the post, you can read the entire post below.

Talking about importance, you can set the security controls in Tally to secure your data to the maximum extent possible.

Another important aspect is to select particular financial year while creating a company in Tally.

Because whatever entries you will make after that will be entered starting from that year.

So if by mistake you have entered entries for 2015 in 2016, it will be a waste of time. It is better not to do that mistake and be careful.

Now, let me explain you step by step about how you can create a company in Tally in under 5 minutes.

Creating a Company in Tally

creating-a-new-company-in-tally

In very few steps you can easily create a company in Tally.

As you can see in the picture above there are some important details that needs to be filled up.

Let us see to it one by one.

Directory – In simple terms it is a place where all your Tally files in your computer are stored so choose it wisely.

It would be preferable to store it in hard drives other than C (which is primary drive) because viruses generally attack C drive.

Primary Mailing Details

Name – As it suggests it is the name of the company you want. It can be your name or your firm’s name or your company’s name.

Mailing Name – It is the name which is on the mails and parcels you receive at your place of business or home. In most cases it is same as your Name above.

Address – As the name suggests, it is your address which can be either business place or your home.

Country – Your country. Nothing more to say here.

State – Your state, union territory or your province where you live or where your business place is situated.

Pin code – It is the pin code or post code where you live or where your business is situated. An example can be 110011 (Prime Minister’s address pin code).

Contact Details

Phone no. – It is your landline phone number.

Mobile no. – Your mobile number. Nothing more to say here.

Fax no. – It is now outdated because of email. You can enter your FACSimile number if you have one.

Email – Your email address. Mine is rishit@tallyschool.com. 🙂

Website – If you have a website, you can enter it here. Or you can enter your Facebook’s page link or Instagram’s link.

Books and Financial Year Details

Financial year begins from – Financial years are from 1st April to 31st March of the next year.

Current financial year is 2016-17 i.e. from 1st April, 2016 to 31st March, 2017.

You have to enter a date in a financial year from which you want to enter accounting entries in Tally. For example, it can be 01-04-2016.

Books beginning from – It is a date from which your business has started because from that date on wards you will be writing your books.

So, for example, if you started your business on 1st August, 2016, your books will be beginning on 1st August, 2016 (01-08-2016) but your financial year beginning date will be 1st April, 2016 (01-04-2016).

Security Control

TallyVault password – It is a password without which no one will be able to open your company in Tally. Not even you.

Remember the password correctly and memorize it otherwise you will lose your data.

Use security control – If you set it to yes, you will get more security options which are required if you have more than one people using Tally at different places.

I have even explained them in case you have the requirement.

Note – TSS means Tally Software Services which includes updates, data synchronization and many more things.

Name of Administrator – It means a username which gives administrative access to all functions of a particular company in Tally.

After that, you can create different users with different privileges in Tally for a particular company.

Password – Set a good password. That’s it. 🙂

Use Tally Audit Features – This option is for Chartered Accountants (CAs) to audit the accounts of the company directly in Tally.

Disallow opening in Educational Mode –  This option will disallow your company from opening in educational mode.

Educational Mode is a mode in Tally with which you can operate Tally without buying license but with limitations. So you can easily check the software without paying for it.

Download the educational version of Tally.

All the major company creation details are complete if you have entered all the details till this step.

Now some minor details are required to be looked at (not even need changing) after which your company will be successfully created.

Let’s look at the minor details. They are called Base Currency Information.

Base Currency Information

Base currency symbol – ₹

Formal Name – INR – This is name which is internationally recognized for Indian Rupee.

For example, for US Dollar it is USD or for Japanese Yen it is JPY.

Suffix symbol to amount – This will put the Rupee symbol before the amount in Tally.

For example, instead of 100 it will show ₹100.

While working in Tally it is not required therefore it is better to show just amount. But it will show the symbol when you print the accounts.

Add space between amount and symbol – It will add space between amount and symbol.

For example, it will show ₹ 100 instead of ₹100. 

If you look at it carefully, there is a space between the rupee symbol in first one while there is no space in between in the second one.

It is our own preference whether to put a space or not.

Show amount in millions – It will show amount in millions instead of crores. 

In India we deal in lakhs and crores while outside India, people generally follow millions and billions.

It is better to show it in crores instead of millions if you are from India.

Number of decimal places – It is the number after the point in an amount.

For example, 100.1234 for 4 decimal places or 100.12 for 2 decimal places.

You can set it as per your own requirements.

Word representing amount after decimal – We call it Paise in India and it is called cents in the USA.

It does not need any change in Tally as it is already set as paise.

No. of decimal places for amount in words – This is for decimal places in words.

For example, you can set it as Rupees One hundred and Twenty Two Paise.

This was the last detail that you are required to fill in to create a company in Tally.

Last Step

All you have to do is to press Enter 2 times.

After setting these details your company will be created and you can easily pass accounting entries for your company.

It was this easy to create a company.

I know you never thought it was this easy for the first time but as I said earlier it actually is very easy.

Below is the whole video explaining creation of a company for your ease.

How to Create a Company in Tally

After watching this video I’m sure you will be able to create a company in a very effortless manner.

Once you have created a company, you can do anything you want.

You can experiment Tally as per your needs and learn Tally at your own pace.

Moreover, you can visit TallySchool to watch Tally tutorials as I will be producing videos like you watched above and will be sharing with you for free forever.

If you have any questions, you can comment down below.

Join TallySchool & Start learning Tally with GST for Free!





Shares
Rishit Shah

I am a CA. Finalist and a big fan of Tally. I like to share knowledge and that is why I have started TallySchool.

136 thoughts on “How to create a company in Tally”

  1. Muhammad Suhaib says:

    Hello Rishit!
    Greetings from Pakistan and what an amazing blog you’ve started on T.ERP 9. What really makes your blog different from other blogs are the ‘not-so-apparent’ T.ERP 9 tips/tricks and insights that you share with us. I am very impressed that you are a CA Finalist. Way to go!

    I need to ask you something about Auto-Backup. Sometime back I heard in a webinar that Auto Backup takes 60 days or 60 version of Backups, I am not sure but I heard the word 60 copies or something like that. Can you confirm and clarify what this means and also correct my understanding. Also if T.ERP 9 is installed as a server-client network and if any user (after doing their work in T.ERP 9) logs out of T.ERP 9, will their auto backup be saved in their system or on the main server?? will auto backup copies be created for each user or what?? Pls explain, thanks!

    Reply
    • Rishit Shah says:

      Thank you Muhammad! That was indeed a great compliment for me and the blog. 🙂
      You heard the number 60 correct. Maximum 60 days of backups are stored in Tally.ERP 9.

      Firstly, if you enable automated backup, it will saved silently in the background while you are working.
      Secondly backup is stored in the data folder and therefore if you are working in a server-client network backup will be stored on the server as the data folder will be always on a server.

      Reply
  2. Muhammad Suhaib says:

    thanks for the reply! well, when I enabled the auto-back up I found a .ABK file in the data folder (that’s Automated BacKup for short I think as opposed to .TBK which denotes Manual Backup file). but there is just one file? so what do we mean when we say Auto Back up stores a maximum of 60 days data? there’s just one ABK file, how do you explain that. thanks!!

    Reply
    • Rishit Shah says:

      Well, it seems like you want to take my test! 🙂 Joking!
      By 60 days I mean the past 60 days.
      Whatever you do in past 60 days will be saved in the ABK file.
      Hope that helps you!

      Reply
  3. Ajayveer Sangwan says:

    Sir i have given my 12th exam nd i was thinking to take tally classes so is it beneficial for me.Can i get even a small job in any of the company after doing so ?

    Reply
    • Rishit Shah says:

      You have to know basic accounting first. If you know basics of accounting, you can easily learn Tally. If you know these two things i.e accounting and tally pretty good, you can get a job provided there is vacancy.

      Good luck! 🙂

      Reply
    • Rishit Shah says:

      Yes, Ajayveer, you can for sure opt for Tally as you know basic accounting and that is how I also started learning Tally.

      Reply
    • Rishit Shah says:

      Hi, Anamika!
      Sorry, but I do not have any institute nor I give any tuitions.
      Good news is that I am preparing a full fledged course from which you can learn easily.

      Reply
  10. joemon says:

    Hey rishit shah…..im done my 12th with science group.so is it easy for me to do tally course and I don’t the basic also

    Reply
  12. Jaya Sireesha says:

    Dear Rishit,
    Wishes of the day,
    Being the new recruitee at sdc on contract basis where the tally is not yet used at pmdc for all its expenses , and manual payment.
    requesting to how to start being the initiator with the work role and its application

    Reply
  13. Dilip says:

    Hi Rishit
    Thanks for your Blog. t gave lots of insights in to accounting and Tally as well.
    I own an Interior Business. My accounts are maintained by an accountant out side as I am an engineer and could not understand accounts till I saw your Blog.
    I want to maintain accounts in house now so that I get better understanding and control of my business. As my business was started in 2012 how do I go about. Should I get the data from my accounted and continue or should I start fresh. Pls advise what would be best.
    Thaks a lot
    Dilip

    Reply
    • Rishit Shah says:

      Hi, Dilip!
      You should definitely get the information of your accounts till date as that will give you a good understanding of your business till date.

      From now, if you have learnt accounting in Tally, you can start accounting by yourself.
      But there is no need to do accounting for previous years as that is done by the accountant.

      And, thanks for saying thanks! 🙂

      Reply
  14. yogesh says:

    Hello sir
    My name is yogesh and I want to learn telly in sort time.
    Is it possible that you send me all videos of telly in a time ?
    Because I want to learn telly as soon as possible. And your videos is too helpfully for me . So please do something if possible.

    Reply
  17. SUFIYAN says:

    sir,i have glad to inform u that first of all thaks
    i m very interested to do tally within 1 month.
    so will u help me sir?
    coz last year of b.com is going on and want to do job out of india with a skills of tally accountig…
    can u share me some basic things that what should i do for that?
    i m awaiting for ur reply.

    Reply
  20. keshaw jha says:

    Hello sir i am keshaw jha now i am pursuing the graduation. some days ago i learnt tally erp 9 and sir now i want to do the job on tally but i don,t have confidence. how can i do that
    please help me

    Reply
    • Rishit Shah says:

      Hi, Keshaw!

      Go with a mindset that you don’t want the job even if you die without a job.
      In short don’t be desperate.

      The company needs you as much as you need the company.
      Best of Luck!

      I know you will get the job.

      Reply
  21. Madhu says:

    Hello Rishit, i hv done b.com and currently i am seeing all the computer work of my transportation company. I am working on tally since three years but i dont know the clear and detail of tally just learnt some entries and adding that in the tally.i wanted to learn tally i detail and i got your name in google. thanks rishit today i enrolled with your classes but i have a doubt which i want to clear.
    i have installed a tally software in my pc(purchased so that i can work offline and later i sync the date with head office) some days back the head office wanted to upgrade my tally version and they connected team viewer and upgraded and sync the data of my pc , but to my surprised all my datas were wrong when i checked.thank God i hv saved the data folder in my hard disk but i want o know why this happened?

    Reply
    • Rishit Shah says:

      Hi, Sandeep!
      If you know little bit of accounting, it can take 5-10 days on TallySchool with Free Tally Course.
      If you don’t know accounting a bit, then it may take a month or so, if you learn it sincerely.

      Reply
  27. Lester victor saldanha says:

    Dear Rishit sir,

    i have downloaded as per the tally school online course. i am not able to edit or change to create a company. its a educational version. what should i do to create a company and practice the tally. i have done my B.Com and MBA finance. i had learnt long back Tally but couldnt gt to work on it as i was using oracle in the company where i was working.

    could you please help me

    Reply
  28. a.venkata ramana says:

    sir,
    I am a retired person. I want to learn the tally and accounting also as a freelancer. can it be possible? If possible i will continue.
    Kindly advise.
    thanking you sir,
    a.v. ramana
    2.7.17

    Reply
  29. Vdya says:

    Hello sir
    I have just downloaded this version of tally, u have clearly said about creating company but i need to know from starting itself, its asking to give mail id sometimes reset password what to do?? Please help me

    Reply
  31. Rahul Chaudhary says:

    Thank you Sir
    You add me in your blog. my education is B.A & doing M.A with History. I have started to take a coaching of Tally is it good for me ? can I learn it easily ? I do not have Computer at Home.

    Reply
    • Rishit Shah says:

      Hi, Rahul!

      I am sorry but you need a computer to learn Tally.

      You can either borrow it from your friend or you can buy a cheap one because Tally will run on one of the cheapest laptops.

      Reply
  32. P T Markose says:

    Dear Mr. Rishit shah
    It is very nice to see such a free school to learn tally and I start studying tally today I feel a good beginning. Since I am a commerce graduate and wish to became a tax practitioner, If it possible by studying your course?
    Thank You,

    Reply
    • Rishit Shah says:

      Hi, P T Markose!

      You cannot become a tax professional by going through my course.
      But you can surely learn Tally to the fullest by going through my course. 🙂

      Thank you very much for your appreciation and I feel good that you feel good.

      Reply
  33. Muhammad Shoeb says:

    Hi Rishit,
    Hope you doing fine, I have a doubt in regards with sales, while doing billing its showing the current balance of the party, do we have any option to hide this current balance column.

    Thanks,
    Shoeb

    Reply
    • Rishit Shah says:

      Hi, Muhammad!

      Yes, you can hide it.

      While in Sales Voucher, press F12. Then, again press F12.

      Go to Other Options and you will see Show Turnover achieved with customer.
      Select No in that option.

      You will not see the current balance column.

      Reply
    • Rishit Shah says:

      Hi, Rajan!
      You can use Tally in many different ways for purchase section.

      Simply use the Purchase Voucher.
      Use it with Stock Items.
      Use it with different voucher types.
      Use it with Orders.
      Use it with bill by bill.

      Reply
  35. Riya George says:

    Hii sir..
    it’s so helpful. Thank u very much…

    I installed educational version of tally ERP9.But in the company creation window, the option maintain(accounts only/accounts with inventory)is disable. How can it enable?

    Reply
  37. G.krupa jyothi says:

    Thank you sir ..
    nice vedio …
    i wnat to know clarity of explaining about security options in company creation with example
    would you please explain it?

    Reply
  38. vinod rajpurohit says:

    plz tell me about freight gst enrty in purchase invocie with gst and saprate enrty for frieght + gst 5% plz tell me in my mail

    Reply
  41. shakti srivastava says:

    hello sir, how r u?
    please tell me if u fill up the wrong information in create company then how to right? or how to delete any company

    Reply
  42. AKBAR BLOCH says:

    Dear Rishit. First of all I am impressed with your attitude. I found that you have given
    reply to almost all the viewers or fan of Tally School. That’s really great because such
    an attitude never seen anywhere in the scenario. I am totally new to the tally but enthusiastic to learn about it. I think that your attitude and materials will help me a lot
    to learn tally easily. Moreover, I add to inform you that I have Tally ERP-9 software licensed version. Thanks a lot for admit me into Tally School !!

    Reply
  44. timothy says:

    Dear Rishit, you are such a kindhearted giver! This school is really helping me to familiarise myself with Tally. The only difficulty on my way is how to download aTally software via your school. Pls, Can you help?
    Thanks.

    Reply
    • Rishit Shah says:

      It can enabled or disabled at the time of creating the company.

      Or, you can enable or disable it via altering the company.
      The steps are:

      ALT+F3 from Gateway of Tally>Alter>Base Currency Information.
      Then, change it.

      Reply
  47. SOWRIRAJAN says:

    I create company in favour of AMIT Financial year begin from 1-4-2017 transaction begins from 1-4-2017 when i create voucher for purchase for Rs.20000/ voucher Dt 11-4-2017 error- Date cannot be the above the current period-Kindly explain

    Reply
    • Rishit Shah says:

      Check the dates of financial year begin from and transaction begins from. It may be 1-4-2016 and therefore the error maybe showing.
      Otherwise, it should not show.

      In my Tally, it is working fine.

      Reply
  51. Ravindranadh says:

    It is really amazing. Teaching Tally @ Free is a beautiful concept and I admire to notice that you are very young, as you said that you are CA final Student.

    Reply
  52. SUNIL says:

    Nice sir, Right now i am an accountant , but want learn more in accounts . plz any video related to accountant plz send my email Id….. tq for sending 2 videos .. my ambitions aslo i want to became professional accountant. can u suggestion me.sir

    Reply
    • Rishit Shah says:

      Hi, Sunil!

      Go through the books from which we learnt in schools and colleges.
      Trust me they are the best to get your grip in accountancy.

      Also, try to do as much practical accounting as possible.

      The mixture of both the theory and practicals will make you an undeniably a good accountant.

      Reply
  53. Avik Mitra says:

    Sir
    I am very very pleased to receive your mail. I created a company waiting for your next instructions.
    It is outstanding experience of today. I am overwhelmed by your help and support.
    With Regards

    Reply
  56. deeps says:

    hey
    rishit
    i need to ask you something about to how to maintain all over account in tally
    but i alredy learn tally erp 9 but now i cant understand how to work on this plz help me

    Reply
    • Rishit Shah says:

      Hi, Deeps!

      Start with your own accounting and try to create your own balance sheet and profit and loss account in Tally.
      If you face any problems, comment here and I’ll be happy to help.

      This is the best way to learn Tally practically.

      Reply
  58. Haarika says:

    Good morning sir . Thank you so much for your initiative sir . It’s really helpful .
    with regards ,
    Haarika.

    Reply
  59. Nikhil Saini says:

    Thanks for your compilation, Tally School. I have a few questions:
    1. Is it possible to run tally directly from an external drive?
    2. I am unable to change the directory while creating a company in tally. Can you please help?
    3. How to use COPY and PASTE functionality in Tally?

    Reply
    • Rishit Shah says:

      Hi, Nikhil!

      Yes, it is possible to run Tally directly from an external drive. Install Tally on an external drive.

      You can change the directory at the time of installation of Tally. After installation, you can change the directory from going to F12 – Configure > Data Configuration.

      Reply
  61. Ramprasad Murthy says:

    In the downloaded version that I did the field “maintain” does not appear. Is there a mistake of this version does not show that.

    Reply
  64. satyavani says:

    Hi, Mr. Rishit.. i joined in free online tally. I down loaded the tally ERP.9. Unable to access. I am very new to tally. Kindly suggest . I gone thru the videos. But still not able to operate. It is asking license details.

    Reply
  65. jerry misquith says:

    Dear Mr. Shah
    Respectful Greetings!
    This is to thank you a very great deal for all the trouble to teach us Tally. You take a lot of trouble to put all your teaching and matter before us and that too for free. And you make it so easy to learn.
    Thank you once again

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares
Share This