Setting Up The New Financial Year In TallyPrime 2024

TallyPrime is a leading software solution for businesses worldwide. As we start the new financial year of 2024, it's important to ensure that our accounting records are aligned with the New Financial year for the smooth operations in TallyPrime.

Understanding the Financial Year in TallyPrime

Setting up a new financial year within TallyPrime is crucial as it allows businesses to organize their financial data accurately in the software, aligns it with the designated accounting period. This ensures that financial reports and statements generated by TallyPrime reflect the transactions and activities specific to that particular year.

When setting up the new financial year in TallyPrime, the user establishes the time frame during which all accounting activities and transactions will be recorded and monitored. This time frame is crucial for maintaining precise financial records, assessing financial performance, and meeting regulatory standards.

Steps to Set Up a New Financial Year in TallyPrime

The start of the financial year can vary by country, typically beginning on either 1st January or 1st April. There are three methods available in TallyPrime for setting up the new financial year. Users can either Change the current period, Opt to create a new company Or Split the company data to begin recording transactions for the upcoming financial year. This flexibility allows users to seamlessly transition into the new accounting cycle according to their preferred method.

Changing the period keeps all ledger balances and pending documents accessible. While creating a new company requires setting up masters and voucher numbering again. The choice between both the options depends on businesses specific needs and preferences.

*NOTE: Before implementing any of these methods in TallyPrime, it's crucial to take a backup of all your Tally data to safeguard against potential data loss or errors during the process.

Method 1: Changing the Current Period.

Step 1 - Change the Current Period:

Go to Gateway of Tally > Press Alt+F2 (F2: Period) and enter the start and the end dates of the financial year.

When you change the Current Period in TallyPrime, the balances from the previous financial year are carried forward. The dates for the start of the financial year and the start of the books, set in the Company Alteration screen, remain unchanged.

Step 2 - Reset Voucher Numbering:

To start recording transactions from the first day of the new financial year with a new number series, you can reset the voucher numbering. This means using unique voucher numbers for all your types of vouchers.

1. Gateway of Tally > Create/Alter > Voucher Type. Alternatively, Alt+G (Go To) > Create Master/Alter Master > Voucher Type.
2. To open the Voucher Type Creation (Secondary) screen, set the "Use Advanced Configuration" option to Yes.
3. Enter the Restart Numbering as required.

Now you can easily record your transactions with a new series of voucher numbers.

Method 2: Create New Company and Import the Opening Balances

When creating a new company, export closing balances of ledgers and stock items from the old company. Import these as opening balances into the new company. You can also bring in audited closing balances from the previous year as the opening balance for the new financial year.

A. To Export Closing Balances From Old Company

• Go to Gateway of Tally > Chart of Accounts > Ledgers > E: Export > Current.
• Click Configure.
• Select the File Format as XML (Data Interchange).
• Press Esc to close the configuration and return.
• Press Enter to export the data.

B. To Import Closing Balances As Opening Balances In New Company.

• Go to Gateway of Tally > O: Import Data > Masters.
• Enter the location of the file in the File Path field.
• Enter name of the file containing master data in the File to Import (XML) field.
• Select the required option for Behavior of Import if master already exists.
• Press Enter to import.

Method 3: Split Company Data

When you split the data in TallyPrime, the original data remains unchanged, and two new companies are created with unique names and dates.

To split and move the data to the new financial year:

A. Verify The Company Data

• Go to Gateway of Tally > press Alt+Y (Y: Data) > Split > Verify Data.
• Select the required company.
• Press Enter to view the Possible Errors screen.
• Rectify the errors before you proceed to split the data.

B. To Split The Company Data

• Go to Gateway of Tally > press Alt+Y (Y: Data) > Split > Verify Data
• Select the required company for which the data has to be split.
• Enter or retain the Split from date.
• Press Enter to split the data. Data will split into two periods.

These steps provide a structured approach to setting up the new financial year in TallyPrime, enabling businesses to maintain accurate financial records and facilitate smooth operations for the year ahead. By following these steps, businesses can effectively manage their financial data and comply with regulatory standards for the upcoming year.