Tally has the latest taxation structure integrated in it. These integrated features in Tally will make it simple to manage myriad issues that will arise due to the complexities of taxation in your day to day activities. Licensing has been simplified for single-users and multi-users.
1-New Features
2-Company Information
The very first time you start Tally, you would require to ‘create’ a company. ‘Create Company’ simply means giving basic information about the company whose books of accounts Tally is to maintain for you. Tally is smart, but it does need an introduction to your company. The initial screen would appear like this:
3-Administer Tally
TallyAudit provides the capability to the administrator/auditor to track changes in the accounts following his previous review. Changes of two areas are important – changes in transactions or vouchers and changes in ledger masters. Only material changes are considered, i.e., a change in the narration does not affect the integrity of a transaction, hence it would not be considered as changed. Any other change in a voucher is material and would be logged. The name of a ledger account if changed, it is material, hence it would be tracked. So also a change in the opening balance of a ledger master.
TallyAudit feature should be enabled while creating the company and authority lists. Only a user designated as an auditor or the administrator can view the audit list and act upon it. Tally tracks all changes made to vouchers that are more than 30 days old. Hence, changes to vouchers that are less than 30 days old are not reported. This is to allow adequate time to correct mistakes. A change includes insertion of new transactions or accounts.
You are not required to make any additional input of data. The authorised user simply needs to display TallyAudit lists and may print out the lists. If he is satisfied with the authenticity of the changes, he accepts the changes either selectively or all of them (by clicking on the relevant button). Once the changes are accepted, they are removed from the audit list and would not be available again. If, however, a change is repeated, it is reflected in the audit list.
4-Accounting Infomrmation
Accounts Information contains the masters as listed in the Accounts Info menu . Each master has to have the following functions, besides others and are consistent in all Masters menus throughout Tally:
Create
This enables creation of new masters. Once a master has been created, any modification to it must be done through the Alter mode.
Display
Use this mode to view Master information. Changes are not permitted.
Alter
Use this mode to view and change master information. You cannot create a new master. We shall begin discussion on Accounts Information with how to build Groups and then follow with other accounts masters.
5-Inventory Information

The different inventory information that you would provide to Tally by way of masters are:
Gateway of Tally: Inventory Info

Stock ItemsLike Ledgers, Stock items are the primary inventory entity. You will use stock items while recording their receipts and issues. This is lowest level of information about your inventory. Each item that is required to be accounted for, needs to be created. In fact, you will create a stock ledger account for each item and Tally calls this account ‘Stock Item’.
Stock Groups
Stock items can be grouped together under Stock Groups to reflect their classification based on some commonality. Grouping would enable easy location and reporting of stock items in statements. Hence, items of a particular brand can be grouped together so that you can extract stock of all items of that brand. For example, create Stock Groups like Sony, Maxell, Verbatim. Your stock items could then be Sony 3.5″ disks, Maxell 3.5″ disks, Sony tapes, Maxell tapes, etc. Classify the Sony products under the Stock Group Sony. Now you have ready details of all Sony products suitably classified. You may even group items as Raw materials and Finished Goods.

You can create sub-groups of Stock Groups for deeper analysis.
Stock Categories
The concept is similar to Cost Categories. You may wish to refer to the Chapter on Cost Categories to grasp the similarity/differences.
This option will come up in the menu only if you have opted for stock categories in Comp. Features.
Stock Categories offers parallel classification of items. You may create Stock Categories like Floppy Disks and Floppy Drives. In the above example in Stock Groups, you would know how many Sony 3.5″ floppies are in stock and separately, the stocks of Maxell floppies. You would also know from the Sony stock group the stock of all Sony items. However, should you require information like total stock of floppy disks or alternative items that could be used, these would be best available through Stock Categories. If you classify both Sony 3.5″ diskettes and Maxell 3.5″ diskettes under the Stock Category Floppy Disks, you know your total stock of floppy disks. Since the items are substitutes of each other, if one is out of stock, you can offer the other of the
6-Voucher Entry
You should set the configuration for voucher entry so that only those features that you require appear when entering vouchers.
A voucher is the basic recording document. To input any data into Tally, you must use a voucher. Inputting data through the voucher entry mode may be called creating a voucher or voucher entry. You may create a voucher on-line on Tally and print it for hard copy and authentication.