KEY ACCOUNTING REPORTS IN TALLY.ERP 9 FOR BUSINESSES

KEY ACCOUNTING REPORTS IN TALLY.ERP 9 FOR BUSINESSES

KEY ACCOUNTING REPORTS IN TALLY.ERP 9 FOR BUSINESSESReports in business are very important; reports help to manage day-to-day business operations efficiently. Tally.ERP 9 provides many important results. Tally reports are developed to suit all the aspects of accounting management, inventory management, and statutory. 

Key Accounting Reports in Tally

1.Cash Flow/Fund Flow: The Cash flow report in Tally is useful to get a view of cash inflow & outflow during an accounting period. This report makes it easy for business owners to understand the cash flow situation for a specific period and helps make decisions. 

The fund flow report in Tally provides the details in the sources of funds and their net flow status monthly.

2.  Ratio Analysis Report: The ratio analysis report is a powerful report for financial analysis. The multiple ratios of the report provide us a clear understanding of the financial position of a business. These are Debt Equity Ratio, Quick Ratio, Return on Working Capital, Return on Investment and so on. 

3.  Balance Sheet: The balance sheet gives a complete glance at the financial position of a business. The balance sheet shows the assets & liabilities of a company. The Balance Sheet can be configured using F12 configuration in Tally.ERP 9. It also provides a Schedule VI Balance Sheet for businesses. The Balance Sheet can be viewed for any given dates. Multiple valuation types are given for defining stock valuations such as FIFO, LIFO, Average Cost, Average Price and many more.

4. Profit & Loss Statement: The P&L report in Tally ERP 9 helps to show the company’s net profit or loss in a given period. The tally report considers the period starting from the date when the books begin to the entry date of the last voucher. This report can be configured with F12 configuration available within the report. 

5. Inventory Reports: The stock summary report displays the current position of stocks or stock in hand for a particular date. With the help of this report, a businessman can view item-wise rates, quantity and value of stocks available. The report also shows the status of stocks available across the various godowns. By this, the owner can see the net stock position by considering purchase & sales orders which are yet to be processed.

6. Stock Ageing Analysis Report: Stock ageing analysis report helps businesses understand their slow-moving goods. This report in tally helps business owners to make decisions based on the procurement of stocks, or whether to liquidate stocks based on their age. 

7. E-Way Bill Reports: Tally gives comprehensive e-way bill reports to make life simple for users. By this user will be able to view transactions that have been exported for e-way bills, transactions that are yet to be exported for e-way bills, e-way bills that have already been generated. 

So, there are many reports in tally that help can help your business in financial analysis of your business in the easiest manner and take quick business decisions.

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KEY FEATURES OF TALLY THAT BUSINESS OWNERS MUST KNOW

KEY FEATURES OF TALLY THAT BUSINESS OWNERS MUST KNOW

KEY FEATURES OF TALLY THAT BUSINESS OWNERS MUST KNOW

While running a business, you have to pay attention to each & every department of your org. and you have to continuously measure and control the activities to ensure the highest level of productivity.

Manually handling of all these work of business is next to impossible, it’s not practical also but fortunate we have computers so we don’t have to deal with physical files anymore.  To take away the burden from business owners, Tally.ERP 9 Software has some amazing reports that are helpful to almost every business type. These reports will help you to measure, analyze and implement control measures if needed. 

Reports in Tally

  • Balance Sheet: Balance sheet shows you the current position of the company. It shows assets & liabilities, which shows the financial standing of the company. 
  • Profit & Loss Statement: A profit & loss statement is also called statement of financial performance. It helps to survive the business and profitability of the same.
  • Purchase Register: Purchase register helps to show a summary of all the purchases made by the company at a specific period. 
  • Sales Register: A sales register shows summary of all the sales done at a specific period of time. It will help you to keep a check on the movement of the goods out of the organization; by this you can get insights about your best sold products.
  • Stock Summary Report: By this report, you can check the present condition of the stock. It will help you to understand how to optimally reorder stock without wasting it. 
  • Ratio Analysis: A ratio analysis report is an amazing tool to understand the financial position of the company. Different ratios give you a clear understanding of the financial position of the company. The ratios like debt-equity ratio, quick ratio, etc are available in tally. 

Security and Control Features in Tally

  • Tally Vault: Tally Vault keeps data encrypted, only when you enter a password, the data can be accessible. With this feature, you can ensure your data is not being accessed by any unauthorized person.
  • Hide data path: In Data path your tally data is saved in default Tally, your data path is visible to the user. Some businesses may see this as a threat to their data and may want to hide the location of their data. In such businesses, Tally Server 9 can be used to get higher levels of security.
  • Data Report and log: With the help of this feature you can monitor your employee’s activity and you can ensure work efficiency. The more you are aware of the day to day activities of your employees, the more you will be able to execute control measures to improve their performance.

These are some of the important features in Tally that every business owner must know; these features will make the work of owners easy & comfortable.  

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List of business expenses on which input VAT is blocked

List of business expenses on which input VAT is blocked

Every service has particular typical business expenses which are incurred on a day to day basis. With the intro of VAT in UAE, certain kinds of costs are such that input tax recovery is not allowed on them. It is important for companies to acknowledge this typical overhead and ensure that input tax is not recuperated on these. In this article, let us understand this typical overhead on which input VAT recovery is not permitted under VAT in UAE.

The costs on which input VAT healing is blocked can be categorized into 3 broad classifications:

a. Home entertainment expenses
b. The automobile used for individual purposes
c. Worker associated expenditures
Let us understand these in detail.

Home entertainment expenditures

Organizations signed up under VAT are not allowed to recover input tax on expenses sustained for offering home entertainment to anyone not used by the organization, consisting of clients, potential clients, officials, investors, owners, and investors in the business.

The type of home entertainment expenditures which are not allowed for input VAT recovery includes hospitality (For example Accommodation, food, and drinks) which are not supplied in the normal course of a meeting, access to shows or occasions, or trips offered the functions of pleasure or home entertainment.

When an organization sustains any such expenditure, it will not be able to recover the VAT incurred on these costs.

Motor vehicles utilized for personal purposes

Normally, a person signed up under VAT is enabled to recover VAT sustained on the purchase, lease or rental of an automobile which is used for their organization activities. However, where the automobile is offered for the personal use of any person in business, the registrant will lose the right to recover the VAT sustained on the purchase, lease or rental of the automobile.

Here, a ‘motor vehicle’ is any road automobile which is created or adapted for the conveyance of no greater than 10 individuals, including the motorist. ‘Motor vehicle’ does not include a truck, forklift, hoist or other similar vehicles. This guideline guarantees that the VAT incurred on essentially business cars is not obstructed due to incidental personal use.

An automobile will not be treated as being available for personal use if it is within any of the following classifications:

a taxi accredited by a competent authority
an automobile registered as, and utilized as an emergency situation vehicle, consisting of by the police, fire brigade, paramedics, or similar emergency services and
an automobile which is utilized in a lorry rental organization where it is rented to a customer

Employee related expenses

Particular expenditures incurred by a service for the function of their employees are not enabled input tax recovery. The VAT paid on employee-related expenditures will not be recoverable by the business where the goods or services are purchased to be utilized by workers for no charge to them and for their individual advantage.

There are, nevertheless, specific exceptions from the above guideline. The above guideline will not use in the following circumstances:

Where the company has a legal responsibility to provide those goods or services to the workers under any suitable UAE labor law.
Where it is a legal responsibility or documented policy of the company to supply those goods or services to workers, to enable them to perform their role, and where it can be proven to be regular business practice to do so in the course of work
For instance: In the employment contract of call center employees, it is assured that conveyance to and from the office will be given, for late-night shifts. Here, as this is a contractual responsibility to the staff members, the organization can recover the VAT paid on the conveyance expenditures.
Thus, companies need to note these costs on which input VAT recovery is obstructed. Even more, it is necessary to keep in mind that the basic conditions for input tax recovery require to be pleased, for input tax healing to be allowed on any type of service purchases. The conditions for input tax healing are listed in our article Input tax recovery under VAT in UAE.

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