Computerized accounting software like Tally ERP 9, TallyPrime, or QuickBooks allows businesses to quickly generate different financial reports that help in understanding the financial position and performance. These reports are essential for decision-making, audit, and compliance.
1. Cash Book
-
A Cash Book records all cash transactions – receipts and payments.
-
In computerized accounting, it is automatically updated whenever payment or receipt vouchers are entered.
-
Types of cash book reports:
-
Cash In Hand: Shows cash available in hand.
-
Bank Book: Shows bank transactions.
-
Cash and Bank Book: Combined report of cash and bank balances.
-
-
Benefits: Quick access to cash balances, easier reconciliation with bank statements.
2. Ledger Accounts
-
Ledger accounts summarize all transactions of a particular account or ledger.
-
Ledgers are created under proper groups like Assets, Liabilities, Expenses, and Income.
-
Steps to view ledger report:
-
Go to Display → Accounts Books → Ledger
-
Select ledger name and period to generate the report.
-
-
Example: Ledger for Cash, Bank, Sales, Purchase, etc.
3. Trial Balance
-
Trial Balance lists all ledger balances to check if debits equal credits.
-
It is an important step to ensure accuracy of accounting entries.
-
Steps in software:
-
Go to Display → Trial Balance
-
Select the period
-
Software generates debit and credit totals automatically.
-
-
Benefits: Helps detect errors before preparing final accounts.
4. Profit and Loss Account
-
Profit and Loss (P&L) Account shows the business’s income and expenses to calculate net profit or loss.
-
Generated automatically by software based on entered vouchers.
-
Steps to generate P&L report:
-
Go to Reports → Profit & Loss Account
-
Select financial year or period
-
View net profit or loss for the period.
-
-
Importance: Helps management know how well the business is performing.
5. Balance Sheet
-
Balance Sheet shows assets, liabilities, and equity at a particular date.
-
Provides a snapshot of the company’s financial position.
-
Steps to generate balance sheet:
-
Go to Reports → Balance Sheet
-
Select the date
-
Software displays assets on one side and liabilities & capital on the other.
-
-
Benefits: Useful for banks, investors, and internal decision-making.
6. Funds Flow Statement
-
Funds Flow Statement shows the movement of funds between sources and uses during a period.
-
Helps in analyzing how funds are generated and used.
-
Steps in software:
-
Go to Reports → Funds Flow Statement
-
Select period
-
View sources (like capital, loans) and uses (like asset purchase, repayment).
-
7. Cash Flow Statement
-
Cash Flow Statement shows inflows and outflows of cash during a period.
-
Categorized into operating, investing, and financing activities.
-
Helps in assessing liquidity and cash management.
-
Steps in software:
-
Go to Reports → Cash Flow Statement
-
Select period
-
View cash position and changes.
-
Selecting and Shutting a Company in Accounting Software:
Selecting a Company
-
Open the accounting software.
-
Go to Select Company from the main menu.
-
A list of created companies appears.
-
Choose the company you want to work with.
-
Software loads the company with all transactions, ledgers, and inventory.
Shutting a Company
-
When finished, you can shut the company to close it safely.
-
Steps:
-
Go to Shut Company option in the menu
-
Confirm to close
-
This returns you to the main menu where you can select another company or exit the software.
-
-
Shutting the company ensures no accidental changes and keeps data safe.