How to create new company in tally

Here's a step-by-step guide on how to create a new company in Tally:

Prerequisites:

  1. You have Tally software installed on your computer.
  2. You have a valid Tally license key.

Step 1: Launch Tally

  1. Double-click on the Tally icon on your desktop or navigate to the Tally folder and run the Tally executable file.
  2. If you have multiple Tally versions installed, select the version you want to use.

Step 2: Create a New Company

  1. Once Tally is launched, you will see the Tally login screen.
  2. Click on the "Create a New Company" button.
  3. In the "Create a New Company" screen, enter the following details:
    • Company Name: Enter the name of your new company.
    • Company Address: Enter the address of your company.
    • Company Type: Select the type of company you want to create (e.g., Limited Company, Partnership, Sole Proprietorship, etc.).
    • Fiscal Year: Select the fiscal year for your company (e.g., April-March, January-December, etc.).
    • Currency: Select the currency you want to use for your company (e.g., INR, USD, etc.).
  4. Click on the "Create" button to create the new company.

Step 3: Set Up Company Details

  1. Once the company is created, you will be taken to the "Company Details" screen.
  2. Fill in the required details, such as:
    • Company PAN (Permanent Account Number)
    • Company GSTIN (Goods and Services Tax Identification Number)
    • Company TAN (Tax Deduction and Collection Number)
    • Company CIN (Corporate Identification Number)
  3. Click on the "Save" button to save the company details.

Step 4: Set Up Ledger Accounts

  1. In the "Company Details" screen, click on the "Ledger Accounts" button.
  2. In the "Ledger Accounts" screen, you can create new ledger accounts or import existing ones.
  3. Create the following essential ledger accounts:
    • Assets (e.g., Cash, Bank, Inventory, etc.)
    • Liabilities (e.g., Loans, Creditors, etc.)
    • Capital (e.g., Share Capital, Reserve, etc.)
    • Revenue (e.g., Sales, Service, etc.)
    • Expenses (e.g., Purchase, Rent, etc.)
  4. Click on the "Save" button to save the ledger accounts.

Step 5: Set Up Inventory

  1. In the "Company Details" screen, click on the "Inventory" button.
  2. In the "Inventory" screen, you can create new inventory items or import existing ones.
  3. Create the following essential inventory items:
    • Products (e.g., raw materials, finished goods, etc.)
    • Services (e.g., labor, transportation, etc.)
  4. Click on the "Save" button to save the inventory items.

Step 6: Set Up Payroll

  1. In the "Company Details" screen, click on the "Payroll" button.
  2. In the "Payroll" screen, you can create new employees or import existing ones.
  3. Create the following essential payroll items:
    • Employee salaries
    • Employee allowances
    • Employee deductions
  4. Click on the "Save" button to save the payroll items.

Step 7: Set Up Taxes

  1. In the "Company Details" screen, click on the "Taxes" button.
  2. In the "Taxes" screen, you can create new tax items or import existing ones.
  3. Create the following essential tax items:
    • GST (Goods and Services Tax)
    • Income Tax
    • Service Tax
  4. Click on the "Save" button to save the tax items.

Step 8: Set Up Reports

  1. In the "Company Details" screen, click on the "Reports" button.
  2. In the "Reports" screen, you can create new reports or import existing ones.
  3. Create the following essential reports:
    • Balance Sheet
    • Profit and Loss Account
    • Trial Balance
  4. Click on the "Save" button to save the reports.

That's it! You have now created a new company in Tally. You can start using Tally to manage your company's financial transactions, inventory, payroll, and taxes.