All You Need to Know About Reporting In Tally ERP 9 Software

Tally reports are generated on the software’s underlying accounting records, vouchers, journals, and ledger entries. These reports are important to the users, such as management and other stakeholders. Many businesses can evaluate the efficiency of their various processes using the reports provided by Tally. Some common business financial reports available in Tally include the Balance Sheet and Profit and Loss statements. Besides these, Tally offers a variety of other reports that can help you improve the efficiency of your business.

A report can be used to analyse performance critically to determine why a good or bad performance occurred. Businesses can use this information to improve or maintain performance levels.

Did You Know? Tally ERP 9 software can be installed on low-specification computer systems due to its lite design. The current system requirement is a dual-core processor with a minimum of 2GB of Ram and a hard drive of 30 MB free space and the operating system of Windows XP or later.

Also read: How to Enter Sales Return Entry in Tally ERP 9?

Reports Produced Under Tally ERP 9

Reports are the premise for decision-making by the management. Every business seeks information and reports to manage its operation and explanation plans. Tally is an enterprise resource planning software designed by Tally Solutions Pvt. Ltd. for accounting and financial information processing. Following is a list of reports that are produced from Tally ERP 9 and guidance on how to generate them –

1. Cash Book

A cash book is a journal folio containing the payment and receipt of the business with liquid cash or transactions routing through the bank accounts of the business. It is one of the important accounting and financial data. And it forms the basis to produce multiple reports that are also available to the public. 

For example – The Cash Flow Statement is prepared from the cash book of an entity to analyse the inflow and outflows of the cash of the entity. Similarly, Bank Reconciliation Statements are prepared to reconcile the difference between Cash books and Bank Statements. 

Cash Book is an important report for small businesses since most of their operations are carried through cash payments and receipts. An analysis of Cash Book produces an impression of the liquidity position of the organisation and its Working Capital Management. Cash Book also forms the premise for analysing the Debtor Collection in the business. 

Steps to Access/Generate the Report – 

Step 1: On Gateway of Tally, Click on “Display more Reports” or press D on the keyboard.

Step 2: From the various options that appeared, click on Account Books, and you will see a new window. 

Step 3: Click on “Cash/Bank Book(s)” or press C on the keyboard to access Cash Book.

2. Profit and Loss Account

Profit and Loss Account, also known as the Statement of Profit and Loss shows the various revenue receipts and dues that were accrued and earned during a particular year against the expense that is expanded to earn those revenues. 

The profit and loss account is part of the annual financial statement of the company. It produces the profits earned by the company from its operations and from other sources. The profit and loss account is the underlying report for various other reports in the tally ERP like financial ratios, profitability ratios, and operating ratios. Profit and Loss accounts may be made in a T-shaped Table or Verticle format as prescribed by Indian Accounting Standards.

Steps to access the Report –

Step 1: On Gateway of Tally under Reports click on Profit and Loss Account or press P on the keyboard

Step 2: There the profit and loss account will appear stating the gross profit and net profits of the business.

3. Balance Sheet

One of the most convenient ways to analyse the financial health of a business is to analyse its Balance Sheet. A Balance Sheet is a summary statement showing all the liabilities on one side including the owner’s equity and Assets on the other side of the Statement. Liabilities are present and future obligations that require the assets to settle. Assets are the present value of the resources of the entity having some economic value. 

The Balance Sheet shows the financial position of the entity at a point in time and also shows its position of liquidity and solvency. A business will be said insolvent if its assets are not enough to pay off its all liabilities. 

Steps to Access Balance Sheet –

Step 1: On the Gateway of Tally under Reports, Click Balance Sheet or press B on the keyboard.

Step 2: on following Step 1, The Balance Sheet will appear on the screen stating the various types of liabilities and assets.

Also read: Tally ERP 9 – What Is Tally ERP 9 and How to Use it?

4. Stock Summary

Inventory Management for any organisation is an important decision-making process. For a manufacturing concern, a huge chunk of its capital gets invested in maintaining inventory. Stock Summary gives the idea of the quantity of inventory laying in the godown, and the consumption pattern of various inventory items. This way businesses may realise the pattern in their inventory movements and plan their Supply Chain management accordingly. 

Steps to access the report –

Step 1: On Gateway of Tally under Reports, Click on the stock report or press S on the keyboard

Step 2: On to the next window, the Stock Summary report will appear on the screen showing the closing balance of various stock items and other particulars.

5. Ratio Analysis

Ratios are the financial indicators of the company’s health and show the potential in the business of the entity. An entity with poor ratios may end up performing poorly in the near future or struggle to sustain its financial position. While there are end numbers of Ratios for various analyses. Tally ERP 9 produces only a handful of them. Currently, Tally ERP 9 produces the following ratios for analysis – 

1. Working Capital Turnover.
2. Working Capital.
3. Inventory Turnover.
4. Current Ratio.
5. Quick Ratio.
6. Debt to Equity Ratio.
7. Gross Profit Ratio.
8. Net Profit Ratio.
9. Operating Cost to Revenue Ratio.
10. Receivables Turnover Ratio.
11. Return on Investment.
12. Return on Working Capital.

Steps to access the report –

Step 1: On the gateway of Tally under Reports, Click on Ratio Analysis or press R on the keyboard

Step 2: Following the above step, Ratio Analysis Report will open up showing the ratios based on various financial indicators like revenue or profit.

6. Trial Balance 

Trail Balance is the summary statement of various accounts. It is prepared before preparing financial statements to evaluate the arithmetic accuracy of the books of accounts. The trial balance showcase number of accounting errors in the books of accounts and the trial balance does not tally or agree. The financial statement will produce a false position on the accounting records. 

Steps to access the report –

Step 1: On the gateway of Tally under Reports, Click on “Display more Reports” or press D on the keyboard.

Step 2: A new window will appear on the screen, under “accounting” Click on Trail Balance or press T on the keyboard to access Trail Balance.

7. GST Reports

GST reports are required to be statutorily filled every month or quarter. For small businesses, these reports could be generated from the software itself and could be reconciled with the physical invoices of the entity. Following are the GST reports generated by Tally ERP – 

1. GSTR 1 –  Form GSTR-1 is a monthly Statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods or services or both
2. GSTR 2 – GSTR-2 is a monthly return that allows the taxpayer to declare and summarise the details of inward purchases of taxable goods and/or services.
3. GSTR 3B – GSTR-3B is a self-declared summary GST return filed every month (quarterly for the QRMP scheme). Taxpayers need to report the summary figures of sales, ITC claimed, and net tax payable in GSTR-3B.

E-Way Bill –  The e-way bill or electronic way bill is an electronic receipt or a document generated on the GST portal when there is a movement of goods from one place to another.

Steps to access these Reports – 

Step 1: On Gateway of Tally under Reports, Click on “Display More Reports” or Press D on Keyboard.

Step 2: Under the various options, Click on GST Reports or press O on Keyboard. There you will see the various GST Reports.

Also read: Benefits of Using TallyPrime for Banking

Conclusion

Reports are underlying support to make decisions. They provide useful insights on what’s going on and indicate the path to improve or grow. Tally ERP 9 also produces a number of financial and accounting reports which shows the path of decision-making. Alright, we have discussed various reports produced by Tally ERP 9 and it is worth noting that they are not exhaustive lists.