Create a Company to Record Business

Transactions
You need to create a company to keep record of all your business transactions and view relatedfinancial
reports.

Create a company
1. On launching TallyPrime, select Create Company.

a. If you already have one company open and would like to create another company, press
Alt+K (Company) > Create.

2. Provide the Company details.

a. Enter the Name, Mailing name, and Address.

b. Enter the State, Country, and other contact details.

3. Set up financial year details and security options.

a. Financial year beginning from:

TallyPrime pre-fills this field based on the date settings of your computer and the Country
selected in the Company Creation screen.

For example, if your computer date is set to 11-03-2020 and the region is set to India, the
financial year is pre-filled as 01-04-2020.

If you update the company’s country as UAE in TallyPrime, keeping the computer date as is,
the financial year for the company is automatically set to 01-01-2021.
 This is because, TallyPrime considers the computer date and the financial period applicable

for the selected country and updates the financial year beginning from field accordingly.

b. Books beginning from:

By default, TallyPrime fills this field with the financial year beginning from date. You can update
this, as needed.
For example, you started your business and have maintained all business transactions since
1-Oct-2020. You can update the Books beginning from date to 1-Oct-2020, while the financial
year will be 1-Apr-2020.

c. Security:

This is optional.

You can enable security features such as Tally Vault and User controls for your company
anytime later.
If you do not see the Security option, press F12 (Configure): > set the following options
to Yes:

Use Tally Vault Password to encrypt Company Data

Use User Access Control

a) Tally Vault:

If you do not want the company name to be displayed in TallyPrime while selecting the
company, you can specify a Tally Vault password for your company.

This encrypts your company and therefore ensures privacy of the company data.

You can access this company only if you know this password. This password cannot
be retrieved, if lost.

b) User Access:
You can allow authorised user access to your company by setting up a username
and password for the company.
Which means, next time you select the company, you will need to provide this
username and password to open the company data.

4. Specify the Base Currency Information.

You can set up the base currency depending on the currency used in your business to record
transactions.
To view all the options related to base currency, press F12 (Configure) > set Provide
Additional Base Currency details to Yes.

If your business includes transactions in multiple currencies, refer to the Multi-currency topic.

5. Accept the Company Creation screen.

As always, you can press Ctrl+A to save.
 Saving the company takes you to the Company Features screen, which displays that the
company is created successfully.

Set up company features

As you create a company in TallyPrime, you can set up the necessary features, either now or
anytime later, based on your business needs.

The basic minimum key features required for you to start recording your business transactions are
enabled and displayed by default.

To view other features in the Company Features screen

Set the Show more features option to Yes.

Set the Show all features option to Yes.

Features Description

Accounting

This option is set to Yes, by default.

Maintain Accounts
Setting it to No will disableaccounting-related options for your
company.
 Enable this option to display the option Maintain balances bill by
bill created under sundry debtors and creditors.

When you enter details of sales and purchases with the bill-wise
option activated, TallyPrime prompts you to identify the invoice
with an appropriate reference number.
Enable Bill-wise entry The reference number can then be used to allocate payments to
the correct invoice to maintain an accurate account of
outstanding.

Bill-wise details for non-trading accounts is useful when one

needs to track either an installment to be paid or a loan amount tobe
received over a certain period of time.

Set Show more features to Yes to view this option.

Enable Cost Centres
Used for maintaining and allocating expenses to cost centres.

Enable Interest Calculation Set Show more features to Yes to view this option.

Enable this option to calculate interest automatically based on the

interest rate and the style of calculation specified.

This is useful when interest rates change from time to time.

Inventory

This option is set to Yes by default. This allows you to maintain

Maintain Inventory your stock or inventory.

Setting this to No will disable Inventory- related features for your

company.

Set Show more features to Yes.

Maintain your stock or inventory along with your books ofaccounts.

Stock records may contain errors caused by wrong allocation to

Integrate Accounts with items.
Inventory
This feature enables finalization of financial books without waiting
for the reconciliation of stocks.

You can drill down from the Balance Sheet to view the Stock
Register.

Set Show more features to Yes.

Enable multiple Price Levels
Create multiple price levels for your stock items.
 Set Show all features to Yes.
Enable Cost Tracking
Analyse and track the cost of an item in transactions.

Use Discount column in Set Show more features to Yes.

invoices

Use separate Actual and Set Show more features to Yes.

Billed Quantity columns in Specify quantities that are different from those delivered/received
invoices when invoicing.

Taxation

Enable Goods and Services If your business is under the GST regime, set this option to Yes
Tax (GST) and specify the GST Details for your company.

If your business considers TDS payments, set this option to Yesand

Enable Tax Deducted at
specify the TDS deductor details along with the applicable Rates
Source (TDS)
and Exemptions.

Set Show more features to Yes.

Enable Tax Collected at If your business considers TCS payments, set this option to Yes
Source (TCS) and specify the TCS collector details along with the applicable
Rates and Exemptions.

Set Show all features to Yes.

Enable Value Added Tax
(VAT) If your business is under the VAT regime, set this option to Yes
and specify the VAT Details for your company.

Online Access

Set Show more features to Yes.

Enable Browser Access for Once your company is connected to Tally.NET server, access the
Reports key business report from the broswer in any device using your
Tally.NET credentials.
 Payroll

Set Show all features to Yes.

Maintain Payroll Maintain payroll information in TallyPrime for the selectedcompany.

Set Show all features to Yes.

Enable Payroll Statutory
Maintain payroll-related statutory information.

Others

Set Show more features to Yes.

Enable multiple addresses Add multiple addresses for your company, as per your business
needs.

Set Show more features to Yes.

Mark modified vouchers For audit purposes, view all vouchers that are altered aftercreation.

After you have created the company, in the Gateway of Tally screen, under Name of Company, the
company name appears in bold.

Multiple companies:

You can create as many companies in TallyPrime and manage your business transactions in each
company separately.
If you also prefer to get a consolidated view of the health of multiple businesses or submit
summarised reports for auditing purpose, you can use the Group Company feature in TallyPrime.

Load the company

Once you have created a company, you can load the company in one of the following ways:

Select the company

Open TallyPrime > Alt+F3 (Select Company) > and select the company from the List of
Companies.

If you have created more than one company, you can browse to the data path and select the
required company to open.
Load company on startup

If you wish to load one or more companies by default, whenever you open TallyPrime, you can
configure the same.

1. Open the Startup Settings screen: Press F1 (Help) > Settings > Startup.

2. Set the option Load companies on startup to Yes, and press Enter on Companies to load.

3. In the List of Companies to Load on Startup screen, select one or more companies, based onyour
need.

4. Select End of List, after your have selected the companies to be loaded on startup.

The companies that you select here will be loaded by default next time you open TallyPrime.

Update Company Details | Alter Company

If your company address, phone number, or any other contact information was not provided earlier or
has changed, you can update such details in TallyPrime.

Any changes made to these details will be reflected accordingly in your reports and printed invoices.

1. Press Alt+K (Company) > Alter.

 2. In the Company Alteration screen, make the necessary changes.

3. Accept the screen. As always, you can press Ctrl+A to save.

If you do not need the company anymore, you can delete the company as well.

• Press Alt+K (Company) > Alter.

• Select the company you want to delete
• Press Alt+D to delete

If you want to access the business transactions recorded in the company at a later time, you can
take a backup of the company before you delete it.
Note that once you delete the company, you cannot retrieve it, and therefore keeping a backup of
the company data is recommended.

Allow Back-Dated Transaction Entries | Update

Financial Year
If you have maintained your books of accounts prior to the current financial year, you can add all of
the back-dated transactions to your company in TallyPrime.

Let us assume that you started your business in 1-Jun-2019 and have maintained your business
transactions since then. However, you created a company in TallyPrime on 1-May-2019. By default, the
books and financial years in TallyPrime are both set to 1-Apr-2020.

To allow entries of transactions in TallyPrime starting 1-Jun-2019, you will need to update the
financial year information of the company.

1. Press Alt+K (Company) > Alter.

2. In the Company Alteration screen, update the financial year beginning from as 1-Apr-2019 and
the Books beginning from date as 1-Jun-2019.
 3. Accept the screen. As always, you can press Ctrl+A to save.

In TallyPrime, if the financial year and books beginning date are already set to 1-Apr-2018, and you
alter the dates to 1-Apr-2019, all transactions recorded during the period 1-Apr-2018 and 31-Mar- 2019
will be lost.
However, if you need to maintain transactions separately from 1-Apr-2019, considering splitting your
company to avoid data loss.

Split Company Data in TallyPrime

Procedures:
1. Take a backup of your data.
– Gateway of Tally > Alt+Y (Data) > Backup, to open the Backup Companies screen> Select
companies for backup >.
– Backup Destination Path – This is the default location of your company data.
– Press Enter to proceed.
o The backup file will be stored in the Backup Path as TBK900_10000.001
2. Verify Company Data
– Gateway of Tally > Alt+Y (Data) > Split > Verify Data, to open the Verify Company
Data screen.

– Select the required company, and press Enter to proceed.

– If there are any errors, the list of errors screen will appear, where you can correct the errors
easily.

3. Split Company Data

– Gateway of Tally > Alt+Y (Data) > Split > Split Data, to open the Split Company
Data screen.
– Select the required company from the List of Companies.
– Enter the required date in the Split from field, and press Enter to proceed.
o The Split from date is considered as the beginning of the current financial year.
o Once the company data is split, two separate companies will be created, without
affecting the original data.