Set Up Your Company

Maintaining your business transactions on a day-to-day basis is critical to your business. To keep a record of all your business transactions, you need to first create a company in TallyPrime. Through the company, you can also view and update all your transaction entries, as needed, and go through the financial reports based on the transactions that you maintain.

Create company: To create the company, just enter the company name, address and other details, such as financial year, security, and base currency information. Once you have created your company, based on your business preferences, you can use the accounting, inventory, payroll, and taxation features. You can also specify the tax registration details as applicable, such as GST, VAT, Excise, TCS, or TDS, which can be accounted for your transactions.

Security: All the business transactions that you maintain in the company remain safe. You can enable additional security options for your company to prevent unauthorised access to your transaction records.

If you have more than one user accessing your company, you can set up security for each user based on their roles.

You can create an account in TallyPrime for each user. Based on the user’s roles, you can access to the tasks the user can perform. For more information, click here.

Multiple companies: Do you have more than one business? If yes, you can create multiple companies in TallyPrime, maintain transactions separately for each business, and also manage the returns for each company accordingly.

Group company: If you are maintaining multiple companies, you can get a consolidated view of such business reports by using the Group Company feature. Viewing the financial reports separately for each business and consolidating the accounts manually can be a tedious task.

Once you have set up your company in TallyPrime based on your business requirements, you can record and manage your day-to-day transactions, and track them – even remotely.

Create a Company to Record Business Transactions

You need to create a company to keep record of all your business transactions and view related financial reports. To create the company, just enter the company name and address and update other details, such as contact and financial year information.

In this section

• Create a company
• Set Company Features
• Load the company

Create a company

1. On launching TallyPrime, select Create Company.
   1. If you already have one company open and would like to create another company, press Alt+K (Company) > Create.
2. Provide the Company details.
   1. Enter the Name, Mailing name, and Address. For more information, click here.
      Note: By default, your company data will be saved in the location specified under Company Data Path, which is the same as the folder where TallyPrime is installed. For more information on configuring your data path, refer to Manage Your Company Data.

   2. Enter the State, Country, and other contact details. A sample image is shown below. These details can be printed on your invoices, if needed. For more information, click here.

      

      Accept the screen. As always, you can press Ctrl+A to save the details and create the company. You can set up the remaining company details (steps 3 and 4 below) anytime later.
      

      Note: The name of new union territory Dadra & Nagar Haveli and Daman & Diu is provided in Release 6.6.3. All masters with Daman & Diu and Dadra & Nagar Haveli are automatically updated with the name of new union territory. The state/union territory name before merger is captured in State (before reorganisation) field. Retaining the pre-merger state/union territory name helps in managing transactions and tax returns from that period.

3. Set up financial year details and security options.
   1. Financial year beginning from: TallyPrime pre-fills this field based on the date settings of your computer and the Country selected in the Company Creation screen. For more information, click here.
   2. Books beginning from: By default, TallyPrime fills this field with the Financial year beginning from date. You can update this, as needed. Say you started your business and have maintained all business transactions since 1-Oct-2020. You can update the Books beginning from date to 1-Oct-2020, while the financial year will be 1-Apr-2020.
4. Enable Edit Log: This is optional, available from TallyPrime Release 2.1 onwards. You can enable Set Edit Log applicability under F12 and enable Edit Log for the Company. This will help you to view Edit Log for the future activities that you will perform in masters and transactions. 
   Furthermore, Company-level activities such as enabling or disabling the Edit Log feature, data migration, or data split that affect the Edit Log report of masters and transactions will be recorded in the Edit Log report under Company.
5. Security: This is optional. You can enable security features such as TallyVault and User controls for your company anytime later.
   If you do not see the Security option, press F12 (Configure): > set the following options to Yes:
   • • Use TallyVault Password to encrypt Company Data
     • Use User Access Control
       For more information, click here.
6. Specify the Base Currency Information.
   You can set up the base currency depending on the currency used in your business to record transactions.
   To view all the options related to base currency, press F12 (Configure) > set Provide Additional Base Currency details to Yes.
   • If your business includes transactions in multiple currencies, refer to the Multi-currency topic.
7. Accept the Company Creation screen. As always, you can press Ctrl+A to save.
   Saving the company takes you to the Company Features screen, which displays that the company is created successfully.
   

Set up company features

As you create a company in TallyPrime, you can set up the necessary features, either now or anytime later, based on your business needs. The basic minimum key features required for you to start recording your business transactions are enabled and displayed by default. To view other features in the Company Features screen

• Set the Show more features option to Yes.
• Set the Show all features option to Yes.

After you have created the company, in the Gateway of Tally screen, under Name of Company, the company name appears in bold.

Multiple companies: Do you have multiple businesses to track and manage? You can create as many companies in TallyPrime and manage your business transactions in each company separately. If you also prefer to get a consolidated view of the health of multiple businesses or submit summarised reports for auditing purpose, you can use the Group Company feature in TallyPrime.

Load the company

Once you have created a company, you can load the company in one of the following ways:

Select the company

• Open TallyPrime > Alt+F3 (Select Company) > and select the company from the List of Companies.
• If you have created more than one company, you can browse to the data path and select the required company to open.
  

Load company on startup

If you wish to load one or more companies by default, whenever you open TallyPrime, you can configure the same.

1. Open the Startup Settings screen: Press F1 (Help) > Settings > Startup.
2. Set the option Load companies on startup to Yes, and press Enter on Companies to load.
   
   
   
3. In the List of Companies to Load on Startup screen, select one or more companies, based on your need.
4. Select End of List, after your have selected the companies to be loaded on startup.

The companies that you select here will be loaded by default next time you open TallyPrime.

Update Company Details | Alter Company

If your company address, phone number, or any other contact information was not provided earlier or has changed, you can update such details in TallyPrime Any changes made to these details will be reflected accordingly in your reports and printed invoices.

1. Press Alt+K (Company) > Alter.
2. In the Company Alteration screen, make the necessary changes.
   
3. Accept the screen. As always, you can press Ctrl+A to save.

If you do not need the company anymore, you can delete the company as well. For more information, click here.

Allow Back-Dated Transaction Entries | Update Financial Year

If you have maintained your books of accounts prior to the current financial year, you can add all of the back-dated transactions to your company in TallyPrime. Let us assume that you started your business in 1-Jun-2019 and have maintained your business transactions since then. However, you created a company in TallyPrime on 1-May-2019. By default, the books and financial years in TallyPrime are both set to 1-Apr-2020.
To allow entries of transactions in TallyPrime starting 1-Jun-2019, you will need to update the financial year information of the company.

1. Press Alt+K (Company) > Alter.
2. In the Company Alteration screen, update the Financial year beginning from as 1-Apr-2019 and the Books beginning from date as 1-Jun-2019.
   
3. Accept the screen. As always, you can press Ctrl+A to save.

You can change the Books beginning date in the Company Alteration screen anytime to make back-dated entries up to 1-Apr-2019 for the financial year 2019-2020.

For more information, click here.

Edit Log in TallyPrime Release 2.1

TallyPrime Release 2.1 onwards, you have a facility to view Edit Log of transactions and masters including ledgers, groups, and stock items.

Enable Edit Log While Altering Company

To enable the feature from the Company Alteration screen:

1. Press Alt+K (Company) > Alter.
2. Enable the Edit Log feature.
   1. Enable Edit Log: Yes.
      
      If you do not see the option, then press F12 (Configure) > Set Edit Log applicability: Yes. 
      
      This option does not for enabling or disabling the feature. This action is performed only to display the option to enable or disable in the Company Alteration screen.
      Once you enable Edit Log, you will get the message as shown below.
      
      This message occurs because enabling Edit Log impacts the activities regarding masters and transactions. Furthermore, after enabling, any activity, such as creating, altering, or deleting masters or transactions, will lead to the creation of logs in the respective masters and transactions.
      
   2. Press Ctrl+A to save the setting.
3. Press Y to proceed.
4. Press Ctrl+A to save the settings. 
   Henceforth, edit log will be created for all the activities performed in transactions, ledgers, groups,  and stock items. 

Disable Edit Log While Altering the Company

You can disable Edit Log from the Company Alteration screen at any point in time.

1. Enable Edit Log: No.
   You will get the message as shown below.
   
   This message occurs because disabling Edit Log will stop TallyPrime from tracking the activities related to masters and transactions in TallyPrime. As a result, you will not be able to view Edit Log unless you enable the feature again. However, you can view the already recorded edit logs for transactions and masters when you enable the Edit Log feature again. This is because the logs recorded when the Edit Log feature was enabled are retained in TallyPrime.
2. Press Y to disable.

Activities Affecting Edit Log

The activities such as enabling or disabling the Edit Log feature, data migration, data split, and other activities at the Company-level impact the Edit Log for transactions and masters. The Activities Affecting Edit Log report under Company keeps you updated about activities that affect Edit Log of transactions and masters.

It is important to know that this is not an Edit Log report for the Company but captures only the activities that can affect the Edit Log of transactions and masters.

• Press Alt+K (Company) > Edit Log.
  
  If there are multiple companies loaded in TallyPrime, then the List of Companies screen appears. 
  Select the Company for which you want to view the Activities Affecting Edit Log report.

To know more about the nature of activities that the Company’s Edit Log lists, refer to Activities under Edit Log for company.

Ensure Authorised Access to Company | Set/Remove Security Settings

Security of business transactions and financial reports is critical, especially to avoid misuse or unauthorised access. TallyPrime helps you set up security for your company and change the credentials when required. Based on your business practice, you can enable the security feature by altering the company in TallyPrime.

In this section

• Set/Alter Security Control
• Remove Security Control
• TallyVault

Set/Alter Security Control

1. Press Alt+K (Company) > Alter.
2. Enter security details:
   1. Set Control User Access to Company Data to Yes.
      If you do not see this option, press F12 (Configure) > set Use User Access Control to Yes.
   2. Provide the Username (Administrator) and Password: The credentials you specify here must be entered every time you open your company.
      
      As you press Enter, the following warning message appears:
      
3. Accept the changes. As always, you can press Ctrl+A to save.
   
4. Use Tally Audit features: Tally Audit allows the administrator or an auditor profile user to track changes in the accounting information.
5. Disallow opening in educational mode: Set this option to Yes, if you do not want the company to be opened in the educational mode. In the educational mode, you can record transactions only on the first and last day of a month.
6. On accepting the company creation screen, if you have specified TallyVault password, TallyPrime prompts you to enter the user name and password.

Alter security

Once you have saved the company, you can alter the credentials anytime later, from:

• Company alteration screen
• Users and Passwords menu

To alter security from the company alteration screen:

1. Press Alt+K (Company) > Alter.
2. Select the company, if multiple companies are loaded.
3. You can change the administrator name, password, or both.
   1. To alter only the name of administrator:
      • Security > enter a new Username (Administrator).
      • Enter the existing password in all the password fields.
   2. To alter only the password:
      • Security Control > enter the existing Username (Administrator).
      • Enter a new Password, and repeat it in the Repeat Password field.
      • Enter the Old Password.
   3. To alter both the administrator name and the password
      • Enter a new Username (Administrator) and a new Password.
      • Enter the Old Password.

To alter security from the User and Passwords menu

1. Gateway of Tally > Alt+K (Company)
2. Change the username or password.
   • Change User: Select Change Username and provide a different username.
   • Change Password:
     1. Enter the Old password.
     2. Enter a New Password, and repeat it in the Confirm New Password field.

When altering security setting, providing the old password ensures that an authorised user is attempting to alter the credentials of the company.

Remove Security Control

1. Press Alt+K (Company) > Alter.
2. Set Control User Access to Company Data to No.
3. Enter the existing password in the Current/Existing Password field.
4. Accept the changes. As always, you can press Ctrl+A to save.

TallyVault

Based on your business environment, if you want to maintain privacy of the company that you have created in TallyPrime, use TallyVault. Providing a TallyVault password encrypts your company and all the transaction details, including the company name. Next time you open your company, you will need to first enter this password to view
the company name and other details.

TallyVault is an enhanced security system that allows encryption of your company data. Encryption involves converting normally accessible Tally information into unrecognizable information, which can only be reconverted by authorised persons.

You can set a TallyVault password:

• On the Company Creation screen, while creating the company in TallyPrime.
• (If you had already created a company without a TallyVault password) By selecting the TallyVault option from the Company menu: Alt+K (Company) > TallyVault.
  You can also alter the TallyVault password from the same screen.

For more information, refer to TallyVault under Access Control and Security.

Note: If you have specified credentials for security control and the TallyVault password, next time you open the company, you will need to first enter the TallyVault Password and then the security credentials.

Use Currency as Applicable for Transactions | Set Up Base Currency

Currency details for your company are pre-filled based on the country that you have selected during company creation. If your business is set up in India, the base currency is by default set to Rupees. All the transactions that you record and the reports that you view in TallyPrime will show the values in the base currency that is set for your
company. If your business is set up in India but you have customers from a different country, you can specify the base currency as applicable for that country.

1. Press Alt+K (Company) > Alter.
2. Base Currency Symbol: For example, ₹ for Rupee, AED for United Arab Emirates (UAE), and so on.
   • Based on the currency you choose, you can update the remaining options applicable to that currency. For example, if you have chosen AED as the base currency:
     • Update the Formal name to Dirham.
     • Set Suffix symbol to amount to Yes, because the AED always appears after the number (for example, 5000 AED).
3. Similarly, update the other options as applicable for the currency chosen.
   
4. Accept the screen. As always, you can press Ctrl+A to save.

For more information, click here.

Multi-currency
If your business has customers in more than one country or you need to maintain transactions in different currencies, you can use multiple currencies in TallyPrime. For more information, refer to the Multi-currency topic.