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
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).
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 – It is now outdated because of email.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 firstname.lastname@example.org. 🙂
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).
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.
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.
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.