Friends I wish all Tally users a Happy and Prosperous New Year. Although for Accountants in India New year starts from April 1 when we have to begin new books. But there are people who start their book from Jan 1st. This is the case for companies whose parent companies are out of India.
I have seen many Japanese companies who start their financial year form Jan 1st as their parent companies start their financial year on same date in Japan.
For all those Tally users who would change their period on Jan 1st Here are three tips which they should avoid while doing accounting in Tally. This is applicable to all Indian users from April 1st so they can read carefully and apply it on April 1st when they begin new year.
|Three things to avoid in New Financial Year in Tally|
Three Things to avoid on New year /New Financial Year.
Create new Company in Tally
Many people start New financial year by creating New company as they think they should start afresh. This step has many drawbacks.
First, they have to create all the masters.
Second, they have to post the opening balances if not now then after some time.
Third, since they have not finished their entries of last year they don't have any clear picture of books of account.
So, over all its extra effort and waste of time to create separate company. So, what is the right step?
The right step is to continue in the same company by just extending the financial period at Gateway of Tally. Just press Alt + F2 and change the period. And continue doing the entries.
Further Read : Is it right time to start a new company ?
Changing the period from Company Info
This is the biggest blunder that some of the Tally users commit on New year or at the beginning of New financial year. What they feel is that as they have defined the financial period in Company Info while creating company so they should change the next year there so that they can do further accounting.
This is actually a big blunder which users should avoid as this step would render their data of previous year inaccessible. It would cause the company loss of data of previous financial year.
What is the right step then ?
The right step is to change period of the company in gateway of Tally. If you change the period once it would automatically accept the entries in new period. You can switch to previous year period by simply changing the period again.
Further read : How to continue accounting in new financial year.
Proceeding without changing the voucher Numbering
This mistake is committed by many users who have started special numbering for vouchers. e.g. sales Invoice number starts like 14-15/104 by entering advance configuration in some vouchers masters. So what is wrong in this?
The wrong part is that these numbering is on yearly basis. If you have started a series like 14-15/invoice number then on jan 1st or on April 1st the numbering would start again from One and the sales invoice number would be like this only 14-15/001 on next year. It would duplicate the invoice number. It would further duplicate the references in bill wise bill details. This would lead to confusion and wrong referencing specially in bill wise bill.
So what should be done?
Avoid entering vouchers before editing the series of voucher numbers in voucher master. Start the new series first e.g. 15-16/ and then start doing entries in New financial year.
Further Read : Avoid Duplicate Invoice Number in New Financial Year.
Hope you would find this information useful. Happy New Year and Happy New Financial Year Too. Share your thoughts on your New Year Experiences.