Accounting package Tally is a wonderful boon to all accounts personnel and the business firms. It is very user friendly package. It is available in 7.2 version, 9.0 version and ERP.9 version. Tally ERP.9 version is the latest version and is used maximum.

If using tally program, first time, first of all, we have to create a company in tally program. To create the company in tally, we have to follow the following procedures:-

  1. Please make sure that tally program is original one and is installed by authorized person by tally people.
  2. When it is installed then double click on Tally ERP.9 icon.
  3. Now, you shall see the screen as follows:-

Select “create company”

After selection of “create company” the following screen will appear:-

Now, to create new company you have to fill up all the details as required by tally program as under:-

NAME Write the name of company for whom the accounts are to be maintained. for example company’s name is M/S XYZ  LIMITED, we shall write M/S XYZ LIMITED
MAILING ADDRESS Name of company shall appear automatically. If you want to mention other name you can. In above example we are not changing the name. You have to write the address also. Say, the address is 15, Nehru Place, New Delhi – 110019
STATUTORY COMPLIANCE FOR INDIA (It can not be changed)
STATE When we fill up this detail then a list of all Indian States will appear. Select any one. For this example we have selected Delhi being the state of the company.
TELEPHONE NUMBER Give the telephone number of the company. Say – 11111111
CURRENCY SYMBOL Already given as (Rs.). We need not to change the same.
MAINTAIN There are three options given. 1. Accounts only. 2. Accounts with inventory. .If you want to do accounts only then select accounts only and if you want to maintain stock, raising the bills, then select option “Accounts with Inventory” and if you want to maintain inventory only then select Inventory only. In this example we are selecting “Accounts Only”.
FINANCIAL YEAR FROM Suppose, we want to maintain the accounts for the financial year 2011-12 then we shall write “01.04.2011”
BOOKS BEGINNING FROM Here also, we will mention “01.04.2011”. In case, you are starting your accounts from 01.10.2011 then you can write as 01.10.2011. But, in this case you can not make any entry before 01.10.2011 for financial year 2011-12.
DISALLOWING OPENING IN EDUCATIONAL MODE You should write “Yes” because you want to maintain the accounts not for study purpose. But, we have selected “No” because we are just learning.
TALLY VAULT PASSWORD, (IF ANY) Leave it blank. If you give any password under tally vault, you can not see your company in list of companies whenever you open the tally. It is advisable not to give any password under this column.
USE SECURITY CONTROL In this column say “Yes”. Because you must have some password for your company so that the person who knows the password, he only can open the company.
NAME OF ADMINISTRATOR Write any thing but remember, if you have written any thing in capital letters, then at the time of opening company you have to write you administration name in capital letter only otherwise you would not be able to open the tally. Here we are writing XYZ as administrator’s name in capital letters.
PASSWORD You have to follow the procedure as given in administrator’s name. Here also, we are writing XYZ as password in capital letters.
REPEAT PASSWORD You should again write your password as written in Password Column. So write – XYZ in capital letters. You can not see what you have written. It is just to test you whether you can remember your password or no. So, be very careful regarding your password. If you forget your password then you have not option to open your company. In that case you have to contact to Tally people only.
USE TALLY AUDIT FEATURES Write “No”. Basically this feature is required by auditors or senior persons. So for the time being for learners, it is advisable to select ‘No” against this column.
After filling all the columns your screen will appear as below:

Finally it asks, Yes or No. If you select “Yes,” then the company shall be created as per the details given by you. It is advisable that before selection of “Yes”, once again, you must go through all the details given by you in the form. Suppose, instantly, you want to change any thing, and then select “No”. You can change any thing now. Finally, you have to select “Yes”.

After you select “Yes”, your company is created. It will take few seconds to create the company. So, wait and watch.

For alteration or modification in company structure, refer to “Alteration of Company in Tally”.

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