Question

Tally.ERP 9 as an accounting software package was exclusively devised to automate and integrate all the operations, such as sales, finance, purchasing, inventory, and manufacturing for many small and medium sized enterprises (SMEs). With Tally.ERP 9, accurate, up-to date business information is literally at your fingertips anywhere in the world.
Required:
With practical examples using a service company as a case study, explain the functionalities that has enabled Tally.ERP 9 to make inroads into the Ghanaian accounting software packages market.

Answer 1

Answer.

Tally is accounting software used for performing various purpose like -

• Performing all basic accounting functions of inventory management,
• Costing like jobs and other miscellaneous overheads
• Administering payroll of Office Staffs
• Filing of tax return, profit and loss statement, preparation of balance sheets, GST, trial balance, Fund flow statement, etc.
• Helping in budgeting and variations in it.
• Calculation of interest on outstanding amounts.
• Synchronizing and managing data over different locations.

ERP Software advantages for a SME

• Small and medium enterprises (SME) need ERP software to manage three critical functions - accounting, inventory and compliance. Tally.ERP 9 can be used in all these areas with its simple-to-use interface that manages the complexity of the functions in the background.
• Since Tally.ERP 9 seamlessly allows to manage accounting, inventory and compliance within a single software, it becomes easier for business owners to assess the impact of finance on their businesses and take day-to-day decisions based on data.
• Small and medium enterprises are typically hard-pressed for finances and need to monitor their fund flow and cash flow before taking decisions, such as whether to take a loan from a bank or other sources. With Tally.ERP 9, important decisions can be taken by looking at critical financial reports which are available on the click of a button.
• Business owners need to keep a track of inventory data in hand to ensure that they are not investing heavily in maintaining inventory by paying huge interests on loans. Tally.ERP 9 provides Stock Ageing report which helps manage inventory. Business owners can take decisions based on stock clearance status or give new orders to their suppliers by simply looking at the report.
• Since the introduction of GST, filing returns has become a monthly affair for regular dealers. This means that they need a software for recording business data in GST compliant formats so that they can file GST returns without any hassles. Tally.ERP offers Release 6 is GST-ready. It gives businesses an advantage over their competitors by enabling them to become GST compliant.

ERP Software advantages for medium and large enterprises

• Medium and large enterprises have may business functions. With the right ERP software, they can manage cross functional operations and take their own decisions. Tally.ERP 9 supports businesses to seamlessly combine their activities for accounting, inventory, compliance, payroll, finance and more.
• Business owners can manage multiple functions with multiple user logins. They can assign different access rights to their employees based on the data that use to run the business.
• Remote access can be given for employees who work remotely. For example, an inventory manager who works from a godown location and not at the head office, could get access to appropriate information so that he can generate delivery challans at the godown itself using Tally.ERP 9.
• With Tally.ERP 9, Tax Consultants can remotely perform audit without hassle of transferring the data. Auditors can leave their comments on vouchers and business owners could take further action as required.

Tally ERP Software Benefits

• The nature of any business is such that business owners cannot stop their activities at any point. Tally.ERP 9 makes life easy for business owners. They can pass their first transaction within minutes of installing the software. Tally.ERP 9 gives the flexibility to create masters on the fly, as businesses need to create different types of vouchers most of the time.
• As a business grows over a period of time, new functionalities are required to be added to their existing ERP software. Based on their changing needs, Tally.ERP 9 enables the addition of features such as batch numbers to inventory, order processing of sales and purchases, and more. Many such features can be enabled at any point in time without disturbing previously recorded transactions.
• ERP 9 handles compliance in a seamless manner. It allows for easy management of financial data in both VAT/CST and GST regimes, that too in the midst of a financial year. Business owners need to only provide the date of commencement of GST for the specific set of transactions and GST becomes applicable only for those. Nothing gets altered in the data pertaining to the earlier tax regime. There is no need to split the data for two different tax systems. Tally.ERP 9 takes care of that.

Features:

Feature	Tally	Zoho
Pricing	Different editions with different prices	Moderate (Approximately 2500 per year)
Budgeting	Provides budgeting as one of the feature	Unailable
Financial Management	Supports Financial Management	Not supported
HR and Payroll	Completely supported	Cannot be done
Job costing and manufacturing	Yes	No
POS Invoicing	Yes	No
Quotation And Estimates	Yes	Yes
Warehouse Management	Yes	No