How To Create A New Company In Tally? [Everything You Need To Know]

How to create a new company in Tally is the first thing you must learn when you start using Tally ERP. If you have multiple companies, you can also create them at the cost of a single company.

Today, Tally ERP is more than just an accounting software as it also helps take care of statutory compliances by updating the files.

Moreover, you can work on the software remotely with Tally.net. The remote version provides features such as process payroll. More features get added with every update. The most recent version, Tally ERP 9, release 6, is also GST-compatible.

How to create a new company in Tally?

Creating a new company in Tally ERP 9 may be slightly different from TallyPrime. However, you can follow the guide given below to create one.

Tally ERP 9

Follow these steps to create a company in Tally ERP 9:

1.    Open Tally ERP 9

2.     Select “Create Company” from the “Company Info” menu

3.     Fill in the details asked for on the “Company Creation Screen”

The details required on the “Company Creation Screen” are as follows:

1. Directory

Here, all the data you enter will be stored. In Tally ERP 9, all the data entered will be held in the installation folder by default.

2. Name

Here, you must enter the company’s name.

3. Primary Mailing Details

Here, you must enter the mailing name or the company name, address, country, state, and pin code in the respective fields.

4. Contact Details

Here, you must enter the company's phone number, mobile number, fax, email, and website.

5. Books and Financial Details

Here, you must enter the financial year in which you want to create a company. For example, if you’re going to create a company on 8 December, 2018, you will enter the financial year as 01-04-2018.

6. Security Control

You can set up security control for Tally ERP 9 using a Tally Vault Password that encrypts company data and prevents unauthorised access. Moreover, the new version also has a password strength feature that indicates how strong your password is and helps set a unique code. Red indicates a weak password, orange or yellow a moderate password, and green indicates a strong password.

You can also set up the “Use Security Control” feature that lets you assign specific users, such as data entry operators, billing clerks, financial managers, and more.

7. Base Currency Information

You also need to enter the base currency information, such as the base currency symbol, formal name, and more.

Details for base currency information are as follows:

a. Base Currency Symbol
The software auto-selects the base currency symbol depending on the country. You don’t need to change this if you are operating from the same country.

b. Formal Name
You also need to enter a formal name for the base currency symbol.

c. Suffix Symbol to Amount?
The data field “Suffix Symbol to Amount?” will ask you whether you want to suffix the currency symbol to the amount. For example, you will get $4,500 when you enter “4,500” into the respective fields by enabling this option.

d. Add Space Between Amount and Symbol?
Enabling the field “Add Space Between Amount and Symbol?” adds a space between the amount and symbol. The above case will add a space between '$' and '4,500,' such as $ 4,500.

e. Show Amount in Millions?
When you enable the “Show Amount in Millions?” feature, the amount you enter in the balance sheet will show in millions. For example, if you enter 1,000,000, it will show as one million.

f. Number of Decimal Places
Most currencies, such as the Indian Rupee or the American Dollar, use two decimal places. So, by default, the decimal places are set to two.

g. Word Representing Amount After Decimal
You can set the word representing after the decimal to paisa if you use the Indian currency, or cents if you are using American money.

h. Decimal Places for Amount in Words
By setting this feature to two, Tally represents two decimal places instead of one. For example, if you have 75 paise, and by default it is one decimal place, you will get seventy paise. Whereas, by setting this feature to two, you will get seventy-five paisa.

Once you have entered and verified all the details, you can accept them by pressing “Enter.” You can then press “Enter” again to save them. Also, if you have enabled the “Tally Vault” feature, you will be prompted to enter the Name and Password.

Once the process is completed, Tally ERP will create a company and redirect you to the Menu Gateway. In the Menu Gateway, you can create a master record of the details you just entered and saved, and start entering the transactions.

TallyPrime

TallyPrime, the latest version of Tally ERP, offers simplicity, speed, flexibility and reliability. With TallyPrime, you can perform several tasks together. The newest version of the accounting software is much easier to use and allows you to create invoices on the go.

Follow these steps to create a company in TallyPrime:

1. Select “Create Company” after launching TallyPrime.

2. Update the company details, such as company name, address, state, country, and other contact information.

3. Specify the financial year details and security options. If you cannot find the security option, press F12 and enable TallyVault and User Controls.

4. Set up the base currency information.

5. Accept the Company Creation screen.

After creating the company, you can set up the necessary features as follows:

1. Set the “Show more features” option to “Yes”.

2. Then, set the features you need to “Yes.” You can navigate through them by pressing “F11.”

3. Press “Y” to accept the changes or “N” to continue editing.

Final Thoughts

Tally ERP now comes with GST features. You can learn more about creating companies for GST purposes using the software by visiting the official website. In addition, do not forget to check out videos related to using Tally ERP. Besides this, you can learn a host of other Tally tricks, such as how to split company data or the list of ledgers and groups in the latest version, Tally ERP 9.

So, start learning all about Tally ERP today.

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FAQs

Q. Is it possible to create a company with the same name in TallyPrime?

Ans. While TallyPrime allows you to create two companies with the same name, it doesn’t let you open them simultaneously.

Q. How to change the financial year from the Gateway?

Ans. You can change the financial year from the Gateway by pressing “F2” and entering the start and end dates in the respective fields.

Q. Is it possible to access My Data remotely?

Ans. Yes, you can access your data remotely if you have a stable Internet connection and a working Tally ERP program.

Q. Can I concurrently log in remotely?

Ans. While you can log in multiple times remotely, there are some restrictions on such concurrent remote logins, and you may need to upgrade your Tally membership to higher tiers, such as Gold or TallyPrime Server 9.