Splitting a company data is helpful in easy of operation of company. As during the year company data goes on increasing it slows down the tally operation. Splitting makes company lightweight. A data for one year becomes safe and unwanted and accidental changes in previous year can be prevented by splitting the company.

The procedure is very simple. What you have to decide is which is the company you want to split and what is the date on which you want to split. The company data is on which you are working and the date is usually 1-April of the current year e.g 1-April-2008 for now. You can split the company on half yearly basis also on 1-Sep. if half yearly results are finalized.
Open the company to split. From Gateway of Tally press Alt+F3. Select SPlit Company Data from menu option and Select the Company to split. You would find following screen.