TallyPrime – The Best Accounting Software for Small Businesses in India

A single entry that updates other records simultaneously

Most of your entries are the same handful, repeated: a sale, a purchase, a receipt, a payment, a journal at month-end. They get made between customers, after closing, or on a Saturday, and the longer each one takes, the further behind the books fall. 

TallyPrime gives each transaction its own voucher type, so you pick the type of transaction (whether it be sales or a credit note) and the entry is classified for you. The ledgers, the stock, the outstanding and the tax liability all move from that single entry. Details that repeat like party details, the ledger, the tax rate, etc., are set once and are auto filled.

Know what you can actually spend today

What is in the bank, what is coming in, and what has to go out; three questions you need answered together, and they sit in three different places. So, the answer ends up being an estimate.  

TallyPrime shows cash flow and funds flow in a single click, for any period you choose, so money in and money out are read against each other rather than separately. Cash flow statement in TallyPrime gives a view of the inflow and outflow of cash during a particular period, such as sales and customer payments. The statement also allows you to able to track positive cash flow and negative cash flow. 

Who owes you, and since when

You have some loyal clients who buys goods from you repeatedly. You extend goods on credit to these buyers often thinking about the amount of business they bring. Sometimes you might lose track of unpaid bills and forget to remind the buyer to pay.  

TallyPrime allows you to record a sale on credit by reflecting the sale amount as Debit against the party in the accounts receivables report. Anytime you receive the payment from your party, you can simply enter a receipt entry for that amount to clear the outstandings for that party. 

If you want to see all your pending bills then the Pending Bills Receivables Summary in displays the details of the receivables from all parties. It displays the pending amount from each party and the total number of bills for which the amounts are pending. 

Know which part of the business is actually making the money

The profit and loss statement tells you the money the business made or the loss it incurred as a whole. It does not tell you that the second branch has not turned profits, that one salesman’s travel costs more than the orders he brings in, or that a project that was profitable in the beginning stopped gains halfway through. 

TallyPrime lets you allocate income and expense to cost centres — a department, a branch, a project, an employee, a scheme, whatever the business is actually divided into. The allocation happens in the transaction itself, so no separate exercise is needed later to work out who spent what.  

Cost categories let you allocate the same expense two ways at once. One travel bill can sit against the employee who incurred it and against the sales scheme it was incurred for. Profit and loss is available for any period, in several formats, and is updated with every entry you pass. 

See where the business stands, on any day you ask

Most small businesses find out how the year went several months after it ended. The balance sheet and the profit and loss arrive from the CA as a filing document, at a point where every decision they might have informed has already been taken. 

In TallyPrime the statements are built out of the entries themselves, so they are current to your last voucher. Open the profit and loss for a month, a quarter or a stretch you choose, and set it against the period before it. 

Every figure opens — a number on the profit and loss becomes the ledgers behind it, then the vouchers behind those, so a cost that looks wrong can be traced to the entry that caused it without leaving the report. 

Ratio analysis puts the health of the business on a single screen: what you own against what you owe, cash and stock in hand, and the payment performance of your debtors — the time your customers actually take to pay, rather than what the outstanding balance suggests on any given date. It is the one report that answers how the business is doing, instead of what it did.

Correct on the bill, so filing is only a review

Every invoice carries GST at a rate, in a format, against an HSN. An error made here stays quiet until the return is prepared, which is the most expensive place to find it and the hardest point to trace it back from. 

TallyPrime generates accurate tax invoices, bills of supply and the other invoice types you need, with e-invoices and e-way bills raised from the invoice you have already made. Returns are prepared from your own data, with any transaction that would cause a problem listed for correction before you file. 

You can upload and file returns to GST portal directly from TallyPrime. GSTR-2A and 2B are downloaded and auto-reconciled against your purchases, so input tax credit that a supplier has not reported is visible while you can still act on it.