How to continue accounting for New Financial Year in Tally 9

As new financial year has started tally users are busy finalizing their books. Some of ApniTally users as well as my own customers have raised query related to accounting in new financial year. They are asking if they should start a new company for new financial year. Then they have query how to put last year's closing balance in new financial year.

We face few questions while entering new year data like :-

• How to put opening balances as closing balances for last year are not available at this moment?
• What to do with those ledgers which are not going to be used in next year?
• How to get rid of last years mistakes or errors?
• How to include inventory in this year's books?

There are many solutions to this problem but we have to choose the best. Creating a new company can be one solutions as you would get rid of all those ledgers which have zero balance. In this case you can continue entering vouchers as they come. You have to feed opening balances of each ledger manually when ever your last year balance sheet is finalized.

Splitting the company

Another better solutions is to continue entering data in existing company by changing the period in gateway of tally. When ever you have to make changes in previous period just enter the last year's period and record the entry.
When ever you get you company balance sheet finalized after entering the closing transactions just split the company on 31 march.
This way you would automatically get the opening balances of the all ledgers and there would be no difference in opening balances. But a word of caution here is that do this after finalizing the balance sheet, because once split you will not be able to make changes in last year
s company. What ever entries you would make would reflect only current company. Later on you can delete all those ledgers which are having zero balance or dead.
This method has all the advantages.