Importance of accounting software

APTECH LIMITED
133, Palace Road, Opp., to Thirumalai Naicker Mahal, Madurai - 1

09/10/2020
 AGENDA
• The Importance of Accounting Software
• Accounting Importance
• Accounting Software
• About TALLY
 ACCOUNTING IMPORTANCE
• An important part of any business or organization is,
arguably, the money that comes in and the money that goes
out.

• Monitors closely by recording transactions.

• Analyzing transaction patterns and dealing with things like

payroll and taxes

• The process of summarizing, analyzing and reporting these

transactions to oversight agencies and tax collection entities.
 The Importance of Accounting Software

• Accounting software describes a type of application software

that records and processes accounting transactions.

• Within functional modules such as accounts payable,

accounts receivable, general ledger, payroll, and trial balance.

• It functions as an accounting information system.

• Accounting software helps companies to use the resources in

their accounting departments efficiently, and can reduce
costly bookkeeping mistakes.
 Accuracy

• Accounting software can help to increase the accuracy of

your records by reducing or eliminating human errors in
calculation.

• Manual bookkeeping processes involve making a lot of

mathematical calculations by hand.

• An incorrect calculation early on the process could have a

great impact on the end balance.
 Speed

• Accounting software allows businesses to process their

accounts with greater speed than manual processing.

• Part of this speed increase comes from the use of

computers, which are able to process figures far faster than
the human brain.

• In addition, accounting software allows organizations to

increase efficiency by introducing automation.
 Cost
• The benefits resulting from the speed and efficiency of
accounting software often go hand-in-hand with reduced
overall costs.

• The use of an accounting program allows each member of

the accounting team to do more in a given time, potentially
meaning that a smaller team is needed overall.
 Reports
• Accounting software helps businesses to supply the
necessary members of staff with timely and accurate
financial information.

• However, creating such a report manually would be a time-

consuming process.
 Tax

• Filing your business taxes can be a complex process,

requiring you to keep close track of all your business's
transactions.

• Accounting software helps to make this process easier by

ensuring that all of your business's financial details are in
one place.

• This allows you to calculate your return itself semi-

automatically, rather than spending time and resources
working out the necessary details by hand.
 Accounting software
• OPENSOURCE

• NON-WEB

–GNUCASH
–HOMEBANK
–KMYMONEY
–RCA OPEN-SOURCE APPLICATION
–TRYTON
–TURBOCASH

• WEB-BASED
–ADEMPIERE
–APACHE OFBIZ
–COMPIERE
–DOLIBARR
–ERPNEXT
–IDEMPIERE
–INTARS
–LEDGERSMB
–METASFRESH
–ODOO
–OPENBRAVO
–TRYTON
 Freeware
• BIG4books
• NolaPro
• Outright
• ZipBooks
 Retail
•Acumatica •Microsoft Dynamics SL
• Agresso
• Moneydance
• AME Accounting Software
• Aplos Software • MYOB
• Aria Systems • NetSuite
• Banktivity
• NewViews
• CGram Software
• Cheqbook • NOSA XP
• ClearBooks • Open Systems Accounting Software
• Coda Financials
• Oracle Applications
• Eclipse ERP
• FinancialForce.com • Pastel Accounting
• Fortora Fresh Finance • QuickBooks
• FreeAgent
• Gem Accounts
• Quicken
• JD Edwards • Reckon
• Invoiceit • Sage 50 Accounting
• Liberty Accounts
• Microsoft Dynamics AX
• Sage 300
• Microsoft Dynamics GP • SAP Business One
• Microsoft Dynamics NAV
••
• SAP ERP
• Tally Solutions
• TRAVERSE
• Wave Accounting
• Xero
• You Need a Budget
 TALLY
• Tally Solutions,then known as Peutronics.

• Tally's software business was setup in 1988.

• Simplifies the process of financial accounting and inventory.

• Founders of Tally:

“SHYAM SUNDAR GOENKA”

&
"BHARATH GOENKA"
• Tally is a financial and inventory management system. Tally is one
of the most acclaimed accounting software with large user base
in India and abroad, which is continuously growing.

• Tally is developed in India using Tally Development Language

(TDL). Tally is developed by Tally Solutions Pvt Ltd (Bangalore).

• Tally 9 is the latest version available in the market. Tally 7.2 is

mostly used in many concerns.

• In olden days to maintain the accounts we have used databases.

Tally is an accounting package which is used for maintaining our
accounts electronically. The first version of Tally was released in
1988.
 SOME GENERAL FEATURES OF TALLY:

• It maintains all the primary books of accounts, like cashbook and

bankbook.
• Tally maintains all registers like purchase register, sales registers and
journal registers.
• Tally maintains all statement of accounts like Balance Sheet, Profit and Loss
and Trial Balance, Cash Flow and Stock Statement.
• A Tally can maintain ‘Outstanding Reports’.
• It may provide complete bill-wise information of amounts receivable and
payable.
• It can provide a report for a particular date or reports for any range of
dates.
• It provides the facility of Bank Reconciliation.
 Types of classification:

• Accounts:
It refers to the Daily Transaction.
Ex: Purchase, Sales, Incomes, & Expenses

• Inventory:
It refers the stock details.
 ACCOUNTS

Types of Accounts

Personal Account Real Account Nominal Account

 
Capital a/c, Bank Asset a/c , Purchase Expenses, Income
transactions Sales
  BUDGETS

• Budget figures are used to compare against actual and to display variances.
Bringing up a new column when displaying a statement and selecting the
appropriate budget.

 INTEREST CALCULATION

• It is the lawful yield on money invested.

• It is chargeable in the business world on loans and delayed payments.

 Simple interest:

• The interest amount is calculated only on principal amount.

 Compound interest:
• The interest amount is calculated on principal & interest
amount.
  MULTI-CURRENCIES

• Multicurrency means Forex Amount Will Be Converted Into Rupees.

 TALLY AUDIT

• This option is used to set automatically verify by auditors.

Types of Security Level

• Tally has two security types

 Owner:

• Owner has full access rights to all parts of Tally, except Tally Audit & Company
Alteration screen that are reserved for the Administrator alone.
 Data entry:

• Data Entry has restricted rights.

 NON ACCOUNTING VOUCHER

  PURCHASE ORDER SALES ORDER

• Purchase order
To place the order to buy the goods for our
company

• Sales order
To take the order to sell the goods from our
company
  VAT(Value Added Tax)

• VAT has been introduced in India to ensure a fair and uniform system of taxation.
It is an

• 1.Efficient
• 2.Transparent

• Globally acceptable and easy to administer taxation system. It benefits the

common man (consumer), businessman and the Government.

VAT works in two different ways:

If VAT-registered businesses receive more output tax than the taxes paid as
input,
– Input tax:
This is a tax paid on purchases

– Output tax:
This is a tax charged on sales
1. VAT @ (4%):
• The largest number of goods (270) comprising of basic necessity
items such as medicines, agricultural and industrial inputs, capital
goods and declared goods are under 4% VAT rate.

2. Exempted from VAT:

• The exempted commodities include natural and unprocessed
products in unorganized sector as well as items, which are legally
barred from taxation.

3. VAT @ (1%):
• This is for a specific category of goods like gold, silver, etc.

4. VAT@ (12.5%):
• The remaining commodities are under the general VAT rate of 12.5%.
  CST(Central Sales Tax)
• It is used for only sales process. Pay the tax
amount for sales.

 SERVICE TAX

• Service tax is an indirect tax levied on certain

category of services provided by a person, firm,
agency, etc
  TDS:(Tax Deducted at Source)

• TDS is one of the modes of collecting income tax.

The buyer (detector) deducts the tax from the
seller at the time of payment made to the seller
(Deductee) and remits the tax to the Income Tax
Department within the stipulated time.

 PAYROLL:
• It is used for calculating salary details..(Like Basic
salary,Hra,Ta,Pf,Lic,convenyance)
In India, there are three types of GST.

CGST, Central Goods and Service Tax.

SGST, State Goods and Service Tax.

IGST, Integrated Goods and Service Tax.

• The GST to be levied by the Centre on intra-State supply of
goods and/or services is Central GST (CGST) and that by the States
is State GST (SGST).

• On inter-state supply of goods and services, Integrated GST

(IGST) will be collected by Centre. IGST will also apply on imports.
 Important Taxes subsumed..

CGS SGST
T

Cess Luxur
es y Tax

Counte Central Value

Purcha
rvailing Excise Added
se Tax Tax / CST
Duties Duty

Addition Octroi Entertai

al Excise
Servic and nment
Duties e Tax Entry Tax Duty

IGST instead of CGST and SGST for Interstate Transactions – Destination

Based
 THANK YOU
SSi COMPUTER EDUCATION

133 PALACE ROAD,

OPP. THIRUMALAI NAICKER PALACE
MAHAL
MADURAI 625001
PH: (0452) 4231667, 4230668
MOBILE: 9597484002