What is Tally used for? And why: A-to-Z Guide for Beginners!

If you are an accountant. So I will tell you, What is Tally used for? And why, so if you want to know about it, then I am going to give you complete information about it, so let’s start.

As you all know, Tally is accounting software. Which is commonly used in business to calculate the financial payments of the company. This is used to managing the stock of goods in a company, the expenditure incurred on the goods and the information related to the product can be protected under Tally.

To understand Tally in simple words, the main function of Tally is to organize the account of a company. In which records of income-expenditure, cash-borrow, the amount paid, and various accounts of the bank are available.

So let’s go without wasting any time what is Tally used for? To get complete information about it instantly, let’s start.

Table of Contents

What is Statutory Audit?

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records. The term statutory denotes that the audit is required by statute. Being subject to a statutory audit is not an inherent sign of wrongdoing.

What is Tally?

Tally is accounting software, which is used for all the tasks related to accounting of any business, company, bank, or government office like keeping records of transactions, maintaining it, and keeping its data safe.

There used to be a time when people used to write all the financial transactions in their business by hand and keep them in documents and documents. But now that time has passed. In today’s time computers are used in all types of businesses, and this is the most used of many software related to accounts.

Whenever we talk about accounting work on computers, the first name that comes to mind is Tally. In accounting, many complex calculations have to be done, they cannot be done without software in the computer. this is used only to do such difficult calculations.

The full form of Tally is Transactions Allowed in a Linear Line Yards. And now it’s the most popular accounting software used in India. Tally Solutions Pvt. Ltd. Is a multinational company. Who created Tally. Its headquarters is located in Bangalore city of India. According to the company’s report, more than 1M+ people use this software

What is Tally used for?

Data reliability and security: In Tally, inter-data is reliable and secure. There is no scope for data entry once it is entered into the software.
Payroll management: There are many calculations that need to be done while disbursing the salary to the employees. Tally is used to maintaining the financial records of the company which includes net deductions, net payments, bonuses, and taxes.
Management in the banking sector: Banks use this software to manage various user accounts, and also calculate interest on deposits. Tally Support makes calculations easy and makes banking simple. Tally Support can make calculations easy and bank simple.
Regulation of data across geographical locations: Tally software is used to manage the data of an organization globally. Tally can bring all the branches of the company together, and do general calculations for it at large. So it doesn’t matter where the employee of the company has access. Employees can manage tally by sitting anywhere.
Ease of maintaining a budget: Tally is used for maintaining a budget. This is used to helping companies manage their expenses and work keeping the overall budget in mind.
Simple tax returns filing: Taxes GST is used to ensure that the company complies with all the GST norms. Tax GST takes care of service tax returns, excise tax, VAT filing, TDS return, and profit and loss statements for all small businesses.
Audit tool for compliance: It acts as an audit tool. It is used to conduct regular audits of companies. It conducts a thorough compliance check at the beginning of the financial year and ensures that all monetary transactions are carried out smoothly.
Remote Access of Data: In Tally, employees can access financial data using Unique User ID and Password. The logging and access of data can be done from the comfort of one’s office or home.
Quick Access to Documents: It can keep all Invoices, Receipts, Bills, and Vouchers secure in its Store folder. Using Tally, we can access any of the pre-stored documents. We can get all billing-related files instantly.

Features of Tally?

In this world of competition and growing business where Tally has crossed all limits, it has become one of the best, most reliable, and fastest accounting software. Which meets the complex accounting needs of the business. This is one of the most powerful, multilingual, and business accounting software that helps you to record and publish various accounting stocks and other most recent reports at the click of a button. The various features and benefits inherent in this unique accounting software are as follows.

Tally is very easy to use. Because it is designed to enable quick data entry and accounting information in the blink of an eye.
It enables to record, viewing, and generating of accounting records in the language selected by the user. This is one of the important features of this software.
It allows keeping the records of 99999 companies together.
One of the key features of Tally is that it enables reports to be created for companies where accounts from multiple locations are managed.
More than one detailed data is collated and updated by Tally.
Tally helps in better cash flow by ensuring that collection reminders are provided, which also helps in saving interest.
It enables the identification of bad debts and defaulters in case of payment.
Tally helps us in managing the inventory of the company, which is capable of finding product-wise inventory levels, and also able to find the reorder level for different products at the level set by the user.
Features of Tally also include preparation of product-wise and invoice-wise cost-benefit analysis.
One of the useful benefits of This is that it enables us to understand and analyze performance levels for multiple periods. This enables us to understand the customer buying pattern.
It is capable of tracking the stock.
This enables us to monitor multiple warehouse locations, which allows us to make decisions based on conditions.
Tally is able to calculate various accounting ratios, which help in monitoring the performance and enable quick and accurate decision making.
It enables us to do cost center analysis. This is one of the most useful features of this software.

And if you want to get complete information about this software. So you can watch this video given below, and get complete information on this topic.

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