Creating a Company in Tally

 

Introduction to company creation

The first and foremost thing to do when we start accounting with tally is to know how to create a company in Tally ERP 9. Today one can operate Tally remotely using Tally.net features, process payroll and many more features are updating regularly by Tally solutions. The most recent improvement is GST with compatibility from version Tally.ERP 9.

Create Company in Tally

In this section, we will learn how to create a company using a simple step by step methods. The first step to get started is to create a company. In Tally, the creation of a company involves basic information about the company, books and details of currency.


How to create a company in Tally


In tally, after login double click on the create company option under company information. The following navigation path is used to create the company in Tally:


Go to Gateway of Tally then press Alt+F3 or click on Cmp Info (company Info)



then press C or click on Create Company



The company creation screen will open


In a 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 need to be filled up. A company in Tally means a client or a file. For example, if you want to maintain your company’s accounts in Tally, you have to create a company in Tally with the name of your company. Once you have created a company in Tally, you need to create some ledgers in Tally with which you can then create accounting entries in Tally. Ledgers in Tally are different accounts that are required for creating a complete accounting entry. For example, let’s say, you want to create a Sales Entry with GST in Tally. For that, you need to create some ledgers such as:

· Sales Ledger

· Debtor’s Ledger

· GST Taxation Ledgers

· Stock Item Ledgers

Similarly for different types of entries, you need to create different ledgers in Tally.

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 name.

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.

Contact Details

Phone no. – It is your landline phone number.

Mobile no. – Your mobile number.

Fax no. – It is now outdated because of email.

Email – Your email address.

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. 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 01-04-2021.

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. For example, if you started your business on 1st August, 2021, your books will be beginning on 1st August, 2021 (01-08-2021) but your financial year beginning date will be 1st April, 2021 (01-04-2021). 

Security Control

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

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. 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 (strong) password so that no one can easily crack your account. 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 completed. 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– 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 but 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 symbols 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.


Press enter from the keyboard to accept the creation of your company.


You can also see the video regarding Creating company in Tally 




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