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  • IMPORTANCE OF TALLY FOR BCOM STUDENTS | UPDATED 2020

    • July 18, 2018
    • Posted By : admin
    • Comments Off on IMPORTANCE OF TALLY FOR BCOM STUDENTS | UPDATED 2020
    • TALLY TALLY FOR BCOM STUDENTS

    Bachelor of Commerce(B.Com)

    B.Com or Bachelor of Commerce is a three-year undergraduate degree program that can be opted by students as a full-time and part-time course and can be done in a distance learning mode. B.Com provides a head start for the students and is mainly considered the second most popular undergraduate course for those from the Commerce branch. B.Com can be further divided into two categories:

    • Com or B.Com (General) is also referred to as B.Com (Pass) by many universities or institutes.
    • Com (Honours)
    • Com LLB

    The students who pursue the B.Com degree program are taught all the primary and core subjects related to commerce subject and finance. It is the three-year duration program, and the candidates choose from a few elective subjects too. The program is generally categorized a full six semesters during which the students are gain knowledge of advanced courses related to it such as:

    • Auditing
    • Business Management
    • Accounting
    • Economics
    • Financial
    • Company Law
    • Corporate Tax

    What is a tally?

    Tally is popularly known as accounting software for small and medium businesses. It does all the functions of accounting that a particular medium-sized business has.

    Every field, every sector is upgrading itself so that the end users are satisfied by the service providers. Same is the case of Accounting. If a student indulges himself/ herself in the course of tally, there is a great chance of going to the next level in your career.

    By doing a course of tally, a student’s perspective regarding taxation, accounting and inventory management increases. Tally is the short form of Transactions Allowed in a Linear Line Yards. It is a diploma course which helps the students gain knowledge in the banking as well as accounting sector. In simple words, Tally is a computer-based software which helps you to organize your data in the correct way. Not just that, it will help you cover all those accounting aspects that you were facing trouble in. It basically eases your work. Just by the help of it, your overall work gets jot down into lesser time and more sophisticated form.

    As we all know that after the introduction of GST, many businesses were almost destroyed. Tally software holds that feature which will help you gain knowledge and excel in the same. It will help you tackle the problems of small and medium level of businesses.

    To read in detail about Tally, read What is Tally?

    Tally is not just accounting software. After the release of the ERP version of Tally, the capability and functioning of Tally have widened and extended to a great extent.

    The tally course is specially designed for small-sized industries. Appropriate Knowledge in Tally will help you to get a job. The course fee of Tally is also quite reasonable. This course will include some topics like Banking, Billing, Accounting, and Taxation, Payroll, etc.

    The best colleges to enroll in the tally course are the following:

    • National Institute of Electronics and Information Technology, Delhi.
    • Sant Gadge Baba Amravati University.
    • Ramanujan College.
    • Mother Institute of Electronic Technology (MIET Ahmedabad)
    • Laqshya Institute of Skills Training, Andheri (W)
    • The Institute of Computer Accountants, Borivali.

    For example, did you know that you maintain Employee information in Tally?

    Right from his/her name to everything about duties, work, profile, groups, etc. This could be a great feature if a business has several employees working.

    Now along with the introduction of GST (Goods and Services Tax) in India, Tally will be used by more people than before.

    The reason for this is for most of the general public, Tally is a go-to software for accounting, and that is because of the simplicity of the Tally in itself.

    Tally software is a complete Accounting, Inventory, Taxation, and Payroll software. Tally 9 ERP software is considered as one of the best Accounting software. Tally is capable of handling any business transactions. Tally 9 ERP software is being used by individuals and business corporations to maintain their books of Accounts. It is essential to keep a record of all monetary transactions. To record such transactions, an individual must learn Tally from an institute offering Tally courses. Tally software is used so widely that it has become imperative for the students seeking jobs in the Accounts department of any company to learn Tally to the advanced level.

    SMS, VARANASI held a six-day Tally workshop organized for its B. Com IIIrd year students from 21 Nov to 28 Nov 2016 (except 26-27 Nov). The resource person for the seminar was Mr.AshishVerma from the Institute of Financial Accounting for Professional, Varanasi. During the workshop, he focused on the importance of seminar for commerce graduates and the importance of learning Tally in the final year of B. Com.

    You check their website at https://smsvaranasi.com/

    Well, Tally is a complete Enterprise Resource Planning system with an excellent grip in accounting features.

    Although Tally has many more core features that a business requires, its hold in accounting is truly commendable. Therefore Tally is known more for accounting rather than any other of its features.

    The reason why Tally is recommended is that it does all the things that business at a time of starting requires. And, not just place, but you can use Tally for your accounting also. For example, let’s say you are a salaried person and have investments in shares, mutual funds, and other real estate investments. You can easily pass entries for your monthly salaries. – Receipt Entry quickly passes the thresholds for Stock Market and Mutual Fund Investments (along with capital gains) – Stock Market Entries. You can also give entries for investments in Real Estate. – Normal Payment Entry

    And the best thing is that you do not have to prepare a Balance Sheet or Profit and Loss Account or any of the reports because they are automatically designed while you are passing the entries. In short, the Tally makes manual work simple and easy to access, it is hassle-free, and you can avoid making mistakes.

    Let’s say, for example, if you are starting up a general store business, what would you require?

    • Accounting
    • Billing
    • Sales and profit analysis
    • Banking
    • Inventory

    We can have brainstormed the needs of a newly opened general store, which are all covered by Tally. There are even more functions than this like Audit, Payroll, Manufacturing, and so on, which can be used if needed.

    CORE FEATURES OF TALLY

    1. Accounting in Tally

    Accounting is the primary function of the Tally, the first thing that comes to the mind of a person after hearing Tally is accounting. It is the core function of the Tally.

    Accounting is an essential function of Tally, and most people do not ever use any other parts other than accounting in Tally. At the most, they will use Inventory management and some of the Taxation features, many people do not precisely know how to use those features, and in many cases, they do not even require them.

    If we mainly talk about accounting, Tally has segmented it further into six different functions.

    • Contra (Only for cash and bank-related entries)
    • Payment (For payment entries)
    • Receipt (For receipt entries)
    • Journal (For entries which don’t include cash or bank and for closing entries)
    • Sales (For sales billing)
    • Purchases (For purchase billing)

     See applications of Tally

    1. Billing in Tally

    Billing is mostly included in the Accounting feature, but it has somewhat a separate function rather than accounting.

    The best thing in Tally is that when you create a billing entry, you do not have to make an accounting entry again for that bill. This reduces redundancy by entering a significant amount of data.

    So if you have a shop and you do billing from Tally, you or your accountant do not have to perform accounting for the same bills again as it has already done for you.

    In Tally, Sales and Purchase vouchers are actually for billing, but they can also be used as a simple voucher. Everything in a bill you can imagine is there in Tally for billing.

    1. Payroll in Tally

    This feature is of use when you have a good number of employees working for you, but if your or your client’s business has a fair amount of transactions, you may require Tally.

    For maintaining Payroll in Tally, there are functions like Employee Categories, Employee Groups, Attendance, Pay Heads, and Employees.

    For a manufacturing entity, there are functions such as Units (Work) and Production Types by which information regarding production done by employees in specific units can also be measured.

    Complex payroll calculations are automatically done in Tally when we use the Payroll function. These calculations often require many hours for the analysis, but in Tally, it is done automatically.

    1. Inventory in Tally

    Inventory is an inventible part of a business as billing. Effective inventory management can save a considerable amount of costs, especially if you are working in a manufacturing environment.

    In Tally, you can classify inventories based on groups, units, tariff (applicable for goods on which GST is levied), different stock items, and godowns in which they are located.

    Apart from the above, we can also create Price Lists and Reorder Levels for convenience. Inventory management is done via inventory vouchers. If you or your clients have a business in which inventory management is required and if you have Tally then there is no need to worry about inventory management.

    1. Banking in Tally

    Banking has always played a significant role in business, and with the digitalization, it has become essential and easy to maintain records and data.

    Tally very well covers banking functionality. However, it was not present in earlier versions of Tally but is there in Tally. ERP 9 and all of its versions.

    You can directly print cheques, maintain cheque register, create deposit slips and payment advice in Tally. ERP 9.

    The most crucial function in Banking is Bank Reconciliation (BRS). BRS will eliminate the tedious task of reconciling the bank statements with the books of accounts, which will save a lot of your valuable time.

    1. Taxation or GST in the Tally

    A business cannot operate in isolation. It needs a society to work, governed by the government, which levies different taxes on a company as it is a commercial activity.

    Previously Income Tax, VAT, Excise, Customs, and Service Tax were taken care of by Tally. Now GST is also included in Tally’s latest version. You can upgrade Tally to have the GST functionality right now. Now you can also create GST entries in Tally as well as GST Returns in Tally without using any other software.

    The process is simple and easy and almost the same as previous taxation entries. If you are covered under Audit as per Income Tax Act, 1961, then there are different functions for that also such as Form 3CD, Form 3CA, 44AB Audit, Form 3CB, and so on. If you have taxation functions enabled, then billing is done, including taxes on the sales or purchases. At the end of the year or a particular accounting period, tax credit or tax payable automatically gets calculated by Tally.

    1. Reporting in Tally

    Different types of reports are required at other times for making effective business decisions. In Tally, there are reports such as Statutory Reports, Payroll Reports, Job Work In and Out Reports, and the most significant Exception Reports.

    Exception Reports are useful because they display the information that should not have happened. That is what is necessary to look at while running a business or merely writing accounts of a client.

    Reports are not limited to just reports in Tally. In fact, at every screen in Tally, you can print it or export it, and that can also be called a story in a certain sense. For example, if you are in the Sales Register, you can print that which can also be called an essential piece of information in a report.

    1. Ratio analysis in the Tally:

    Many people do not use this option, and the simple reason is that not many people are interested in analysis or do their research.

    It is a Gateway of Tally. There is an option called Ratio Analysis, which displays many important ratios based on information that is entered by you at the time of creating vouchers.

    Some of the common ones included in Tally are Current Ratio, Quick Ratio, Debt/Equity Ratio, and Inventory Turnover.

    You can also alter the timing of the way you want to have a look at ratios. For example, you want to know the Current Ratio for the first six months of the year, which can also be done in Tally.

    Moreover, Ratio Analysis in Tally helps us to make quick decisions about our business or our client’s business, whatever the case may be.

    This article was updated on 7 May 2020.