Accounting is the process of recording, classifying, and summarizing financial transactions to provide useful information for decision-making. It’s often called the “language of business” because it communicates a company’s financial health to various stakeholders, like owners, investors, creditors, and government agencies. 

Key Concepts and Terminology

• Accounting Equation: The fundamental principle of double-entry accounting. It states that a company’s Assets are equal to the sum of its Liabilities and Owner’s Equity.

  • Assets=Liabilities+Owner′sEquity

  • Assets: Things of value a business owns to generate future economic benefits. Examples include cash, inventory, equipment, and buildings.

  • Liabilities: The company’s financial obligations or debts owed to external parties. Examples include loans, accounts payable (money owed to suppliers), and mortgages.

  • Owner’s Equity: The owner’s residual claim on the assets of the business after all liabilities are paid. It represents the capital invested by the owners plus any accumulated profits.

• Debits and Credits: These are the two sides of every accounting transaction. They are used to record changes in accounts.

  • Debit: An entry on the left side of an account. It increases asset and expense accounts, and decreases liability, equity, and revenue accounts.

  • Credit: An entry on the right side of an account. It increases liability, equity, and revenue accounts, and decreases asset and expense accounts.

• Financial Statements: These are the primary reports generated through accounting that summarize a company’s financial activities.

  • Balance Sheet: A snapshot of a company’s financial position at a specific point in time. It shows what the company owns (assets), what it owes (liabilities), and the owner’s stake (equity).

  • Income Statement: Reports a company’s financial performance over a period of time (e.g., a month, quarter, or year). It shows revenues, expenses, and the resulting net income or loss.

  • Statement of Cash Flows: Shows how a company’s cash position changed over a period of time, categorizing cash flows into three activities: operating, investing, and financing.

Types of Accounts

In accounting, all transactions are classified into one of five main types of accounts:

1. Assets: As mentioned above, these are valuable resources owned by the business.

2. Liabilities: The debts and obligations owed by the business.

3. Equity: The owner’s or shareholders’ stake in the business.

4. Revenue (or Income): The money earned from the sale of goods or services.

5. Expenses: The costs incurred to generate revenue.

Developers & Introduction of tally

Tally Developers:-

Tally solutions founded in the year 1987 by late Mr. S SGoenka. The founder chairman of tally solutions, ShyamSundarGoenka died of a heart attack on 21 oct 2022 in Bangalore. He was 70

Tally Solutions is india’s most successful and prominent software product company.

With more than 8.5lakh businesses benefiting from its product philosophy,

The ‘power of simplicity ‘,the company provides innovative and easy to use business solutions.

In 1986, along with his son Bharat Goenka(Above picture), he started a company called peutronics that developed a cost-effective accounting package called tally solutions.

The unprecedented success of their flagship product led to the formation of Tally Solutions, a Rs.36.6 crore (2001-2002) software product company.

Introduction:-

Tally solution private ltd is Bangalore based software company that currently sells into more 100 countries beyond its native india, including the united kingdom, banglash and middle east.

 Tally software is mainly for vouchers financial statements, and taxation is many industries and has specialized package for retail business, more advance capabilities are found in its enterprise recourse planning package.

Versions & Features of tally

Tally versions:-

Features of Tally.ERP 9:-

Simple and Flexible

Tally .ERP 9 is simple to learn and Flexible to use.it allows both keyboard and mouse conventions for smooth and easy data entry

Codeless accounting

Takky.ERP 9 pioneered the ‘no accounting codes’ concept which allows the user to maintain data in plain English (natural language interface)

Complete Business Solution

Tally ERP.9 provides an integrated business solution for accounting, inventory, sales, finance, purchasing, manufacturing, excise and payroll extensive with features to record, extract, display and print information effectively

Versatility

Tally ERP9 is designed to handle multiple companies for multiple accounting periods with multiple locations/branches.

Multi-platform support

Tally ERP9 operates on various operating systems such as windows 98/ME/NT/2000/2003/2008/XP AND Windows 7

Remote access

Tally ERP9 provides the facility to remotely access the data from anywhere any time.

You can start Tally.ERP9 using any of the following ways:-

Click on start button – programs—Tally.ERP9—click Tally.ERP icon.

(or)

Double click on the Tally ERP9 on the desktop.