Reasons why companies fail One of the least understood aspects of entrepreneurship is why small businesses fail, and

theres a simple reason for the confusion: Most of the evidence comes from the entrepreneurs themselves. I have had a close-up view of numerous business failures including a few start-ups of my own. And from my observation, the reasons for failure cited by the owners are frequently off point, which kind of makes sense when you think about it. If the owners really knew what they were doing wrong, they might have been able to fix the problem. Often, its simply a matter of denial or of not knowing what you dont know. In many cases, the customers or, I should say, ex-customers have a better understanding than the owners of what wasnt working. The usual suspects that the owners tend to blame are the bank, the government or the idiot partner. Rarely does the owners finger point at the owner. Of course, there are cases where something out of the owners control has gone terribly wrong, but I have found those instances to be in the minority. What follows, based on my own experiences and observations, are the top 10 reasons small businesses fail. The list is not pretty, it is not simple, and it does not contain any of those usual suspects (although they might come in at Nos. 11, 12 and 13). 1. The math just doesnt work. There is not enough demand for the product or service at a price that will produce a profit for the company. This, for example, would include a start-up trying to compete against Best Buy and its economies of scale. 2. Owners who cannot get out of their own way. They may be stubborn, risk averse, conflict averse meaning they need to be liked by everyone (even employees and vendors who cant do their jobs). They may be perfectionist, greedy, self-righteous, paranoid, indignant or insecure. You get the idea. Sometimes, you can even tell these owners the problem, and they will recognize that you are right but continue to make the same mistakes over and over. 3. Out-of-control growth. This one might be the saddest of all reasons for failure a successful business that is ruined by over-expansion. This would include moving into markets that are not as profitable, experiencing growing pains that damage the business, or borrowing too much money in an attempt to keep growth at a particular rate. Sometimes less is more. 4. Poor accounting. You cannot be in control of a business if you dont know what is going on. With bad numbers, or no numbers, a company is flying blind, and it happens all of the time. Why? For one thing, it is a common and disastrous misconception that an outside accounting firm hired primarily to do the taxes will keep watch over the business. In reality, that is the job of the chief financial officer, one of the many hats an entrepreneur has to wear until a real one is hired. 5. Lack of a cash cushion. If we have learned anything from this recession (I know its over but my customers dont seem to have gotten the memo), its that business is cyclical and that bad things can and will happen over time the loss of an important customer or critical employee,

the arrival of a new competitor, the filing of a lawsuit. These things can all stress the finances of a company. If that company is already out of cash (and borrowing potential), it may not be able to recover. 6. Operational mediocrity. I have never met a business owner who described his or her operation as mediocre. But we cant all be above average. Repeat and referral business is critical for most businesses, as is some degree of marketing (depending on the business). 7. Operational inefficiencies. Paying too much for rent, labor, and materials. Now more than ever, the lean companies are at an advantage. Not having the tenacity or stomach to negotiate terms that are reflective of todays economy may leave a company uncompetitive. 8. Dysfunctional management. Lack of focus, vision, planning, standards and everything else that goes into good management. Throw fighting partners or unhappy relatives into the mix and you have a disaster. 9. The lack of a succession plan. Were talking nepotism, power struggles, significant players being replaced by people who are in over their heads all reasons many family businesses do not make it to the next generation. 10. A declining market. Book stores, music stores, printing businesses and many others are dealing with changes in technology, consumer demand, and competition from huge companies with more buying power and advertising dollars. In life, you may have forgiving friends and relatives, but entrepreneurship is rarely forgiving. Eventually, everything shows up in the soup. If people dont like the soup, employees stop working for you, and customers stop doing business with you. And that is why businesses fail.

NAMES OF COMPANIES y y y y y y y y y y y y y Unique trust Financial Services Limited[1] MNK Ghana Ltd (Ind/Dom Paint Supplier/ Manufacturer) Sandblasting & Coatings (Gh) Ltd Spearhead Networks (www.spearheadnet.net) Dkay Animax Limited Inchcape Shipping Services (Ghana) Ltd Guinness Ghana Breweries[1] Nestle Ghana Limited[1] Aimers Africa Limited(www.aimersafrica.com) Ghana Community Network Services Limited[1] Toyota Ghana Company Limited[1] Dizengoff Ghana[1] Infosource Limited[1]

y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y

i2000 Limited (NIIT Franchisee)[1] Kasapreko Company Ghana[1] Atwiema Kwanwoman Rural Bank Limited[1] Fan Milk Limited[1] TLG Properties Ghana Limited The Trust Bank Limited[1] AIM absolute intrusion management Perpetual systems ltd( P.S.L.) Prudential Bank Limited[1] Barclays Bank Ghana Limited[1] Ecobank Ghana Limited[1] Eucliz Limited[1] Kakum Rural Bank Limited[1] Unique Insurance Company Limited[1] Persol Systems Limited[1] Smarttruck Limited[1] Kingdom Books & Stationery Limited[1] Otuaseken Rural Bank[1] Benso Oil Palm Plantation Limited[1] Standard Chartered Bank Ghana Limited[1] Shell Ghana Limited[1] Stanbic Bank Ghana limited[1] Emkay Electricals Construction Limited(0243547693) Produce Buying Company Limited[1] Company Limited[1] Nwabiagya Rural Bank Limited[1] Bosomtwe Rural Bank Limited[1] Enterprise Insurance Company Limited[1] Taysec Construction Limited[1] Quality Insurance Company Limited[1] Merchant Bank Ghana Limited[1] Dkay Animax Limited Donewell Insurance Company Limited[1] DHL Ghana Limited[1] First Atlantic Merchant Bank Limited[1] ProCredit Savings and Loans Company Limited[1] Odotobri Rural Bank Limited[1] Star Assurance Company Limited[1] Modicom Limited[1] Unilever Ghana Limited[1] Interplast Limited[1] The Coca-Cola Bottling Company Limited[1] Wienco Ghana Limited[1] Charles Technology Africa Ltd.[1]

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Star Oil Company Limited[1] Kinapharma Limited[1] Upper Manya Kro Rural Bank Limited[1] Amalgamated Bank Limited[1] Tropical Cable & Conductor Limited[1] Sambus Company Limited[1] Holy Trinity Medical Centre[1] British American Tobacco Ghana Limited[1] Juaben Rural Bank Limited[1] Aviance Ghana Limited[1] Gemini Life Insurance Company Limited[1] First Allied Saving & Loans Limited[1] Adansi Rural Bank Limited[1] International Commercial Bank Limited[1] Ghana National Petroleum Company[1] M & G Pharmaceuticals limited[1] Sekyere Rural Bank Limited[1] SG-SSB Limite][1] CFAO Ghana Limited[1] Kwatson Ghana Limited[1] Ayrton Drug Manufacturing Company Limited[1] Ghana Life Insurance Company Limited[1] Midindi Ghana Hotel[1] Vanguard Assurance Company Limited[1] Lower Pra Rural Bank Limited[1] Accra Brewery Limited[1] Golden Tulip[1] Ghana Oil Palm Dev't Company Limited[1] Manya Krobo Rural Bank Limited[1] Amanano Rural Bank Limited[1] Aluworks Limited[1] Dangme Rural Bank Limited[1] Akuapem Rural Bank Limited[1] South Akim Rural Bank Limited[1] Provident Insurance Company Limited[1] Barry Callebaut Ghana Limited[1] KANE-EM Industries Limited[1] FACOL Roads Limited[1] Tractor and Equipment Ghana Limited[1] Ahanataman Rural Bank Limited[1] Horizon Finance & Leasing Company Limited[1] Fiaseman Rural Bank Limited[1] Atlantic & Pacific Forex Bureau Limited[1] Japan Motors Limited[1]

y y y y y y y y y y y y y y y y

Mechanical Lloyd Company Limited[1] HFC Bank Ghana Limited[1] Ghana Monetary Agency[1] Anomabo Beach Resort[1] Nexans Kable Metal Limited[1] Twifo Oil Palm Plantation Limited[1] Ghana Libyans Arab Holding Company Limited[1] Amansie west Rural Bank[1] Qualiplast Limited[1] Kaaseman Rural Bank Limited[1] 1st African Financial Services Limited[1] KAMA Health Services Limited[1] Ghana Aluminum Products Limited[1] DYKOM LIMITED Payafrique Limited Capital Express Assurance

y City Investments Company Limited DISTINGUISHING ONES COMPANY FROM THE OTHERS

Despite the current economic woes, business in the Middle East continues to grow at an incredible pace, especially compared to other parts of the world. So as competition increases, how can you distinguish your company from others?
By Kelly Watkins As a business owner, director, or manager - you face more competition. This challenge comes not only from the new business opening up next door, but also from the business half-way around the world - thanks to the internet and overnight shipping. As a leader, how can you differentiate your company from the challengers? I discovered the answer to this question while en route to speak at a conference for a restaurant association. It was dark when I climbed into the taxi at the airport. This airport was in the middle of nowhere. As I stared out the window into the night, I finally noticed the lights of a large complex on the right side of the road.

There were several office buildings and a few hotels sprinkled among the parking lots. All the hotels were similar. Other than the name on the sign, the buildings housing the hotels were almost identical. There was nothing unique about any of them. None of them had a beautiful courtyard or flower garden. There were no swimming pools or attached restaurants. There were no sandy beaches or babbling brooks. The surroundings were all the same. Being familiar with the brands, I knew the prices were comparable and the interiors of the hotel rooms were similar. I thought to myself. What differentiates these hotels? Why would a customer choose one of these over the others? Then, I realized the answer! It depends on one thing: The people inside. The employees. The one thing that would determine whether the customer returned to that hotel or selected the one next door . . . would be his/her experience with the employees. If the guest was treated well by the staff, he/she wouldn't even consider going elsewhere next time. If the guest was treated poorly, he/she would never return. Whatever your business is, the same concept applies to you. What is the primary element that distinguishes you from the competition? Your employees and the level of service they offer. Client satisfaction is determined by the attitude and actions of your employees. It is your responsibility as the leader to ensure that employees are able to service the customers. You may invest millions of Dirhams, Dollars, Euros, or Pounds in your facility, your phone system, or your computers. But, what does the customer care about? How they are treated by employees. Are you investing in your biggest asset? Are your employees properly trained? I am not referring to the technical aspects of the job. I am talking about training and empowering staff to provide exceptional service. As the leader, you determine the company's tone regarding customer service. It is also your job to communicate it. Does your staff know what your philosophy is? Now, here are the hard questions. Is your staff empowered to implement the vision? Can they effectively deal with upset customers? Can your employees communicate with customers using good listening skills? Do they know how to adapt to different behaviour styles? Every employee helps differentiate your company. The question is - are they distinguishing you from the competition, or are they sending your customers to the competition?

FINANCIAL POTENCIAL

Brian Tracy says that knowing the right people and being known by them, can open doors for you that you would hardly believe. The quality and quantity of your contacts and your relationships will have more to do with your success than any other factor.
Here are three things Brian Tracy says you can do to expand your list of contacts. Make a list of the 25 people you feel would be most useful for you to know. Develop a strategy to meet each one of them over the next 12 months. That's one every two weeks. List the people in charge of the major corporations that would be useful for you to know. List your mayor, list your congressmen, list your senator. List all the important people that could be helpful to you. Then make a plan to meet them. Network at Every Opportunity Next is for you to network at every opportunity. Join business and trade associations, Chambers of Commerce. Attend meetings. Get involved. Volunteer to serve on a key committee. This action alone can put your career years ahead. Tracy tells of when he was working with his local Chamber of Commerce, he came to the attention of a senior executive who hired him away from his current employer for triple the salary. Meeting people is very important. Network at every opportunity. Get Involved in Your Community Get involved in community service organizations. The best people in every community, the people you should know and who should know you, are usually involved in public service in some way. Start with the United Way in your own city, or get involved in any charity that you care about or that you're interested in. You'll be amazed at the quality of people you will meet doing voluntary service. Will you do this?

(Yes, Frederick! And I want you to mentor me, too!)

Create Good Work Habits A powerful form of leverage that can help you is good work habits. Good work habits make an extraordinary difference. Brian Tracy recently conducted a study of 104 chief executive officers. They all agreed that the ability to set priorities, and then to get the job done fast, were the two qualities that most often led to promotion and increases in pay. Good work habits will bring you to the attention of the important people in your life as fast or faster than anything else you can do. In the final analysis, you always get paid for your results, whether you are an employee or own your own business. If you develop a reputation for being the person who gets the job done quickly, this can easily put you on the fast track in your career and your business.

Your Action Assignment

Here are two things you can do right now to leverage your financial potential First, get involved in the business, trade, civic and social organizations in your community. Once you become a member, offer to help and serve on committees. This will bring you to the attention of people who can help you faster than any other way. Second, develop excellent work habits. Be punctual. Plan your work and work your plan. Always concentrate your conscious energies on high priority tasks and make sure that you are doing things that are important. Astrology is an effective tool for personal growth and increased self-understanding. With the insights gained from consulting your astrological birth chart, you can determine the best route to your goals in virtually any area of your life. Mapping Your Money provides a simple, powerful, and completely individualized system to help you use astrology to successfully navigate money challenges and maximize financial opportunities in your life. Mapping Your Money starts with a step-by-step exploration of your birth chart. No previous astrological knowledge is required. From there, you will learn basic techniques to interpret a birth chart from a financial perspectivesuch as discovering which of the birth charts twelve houses are considered money houses, and determining where your money planets are in your own birth chart. The CD-ROM enables you to quickly and easily generate personalized financial astrological profiles for yourself or others, while learning the essentials of astrology at your own pace. With this book and CD-ROM, you will be able to look at a birth chart

Information Systems for Business Functions 12.1 Supporting Business Functions in an Enterprise with Information The principal business functions in a business firm are: 1. Marketing and sales 2. Production 3. Accounting and finance

4. Human resources Figure 12.1: Outlines a general view of information systems supporting a company's operations and management. Emphasize that management support systems (MRS), decision support systems (DSS), and executive information systems (EIS), rest on the foundation of transaction processing systems (TPS) that support business operations. TPSs are the major source of data used by the higher-level systems to derive information. Professional support systems (PSS) and office information systems (OIS), which support individual and group knowledge work, are also a part of this foundation. 12.2 Marketing Information Systems [Figure 12.2 & Figure 12.3] Marketing activities are directed toward planning, promoting, and selling goods and services to satisfy the needs of customers and the objectives of the organization. Marketing information systems support decision making regarding the marketing mix. These include: 1. Product 2. Price 3. Place 4. Promotion Figure 12.3 illustrates the structure of the entire marketing information system. In order to support decision making on the

marketing mix, a marketing information system draws on several sources of data and information. Sources of Data and Information for Marketing: BoundarySpanning and Transaction Processing Subsystems A marketing information system relies on external information to a far greater degree than other organizational information systems. It includes two subsystems designed for boundary spanning - bringing into the firm data and information about the marketplace. The objective of marketing research is to collect data on the actual customers and the potential customers, known as prospects. The identification of the needs of the customer is a fundamental starting point for total quality management (TQM). Electronic commerce on the WEB makes it easy to compile statistics on actual buyer behaviour. Marketing research software supports statistical analysis of data. It enables the firm to correlate buyer behaviour with very detailed geographic variables, demographic variables, and psychographic variables. Marketing (competitive) intelligence is responsible for the gathering and interpretation of data regarding the firm's competitors, and for the dissemination of the competitive information to the appropriate users. Most of the competitor information comes from corporate annual reports, mediatracking services, and from reports purchased from external providers, including on-line database services. The Internet has become a major source of competitive intelligence.

Marketing Mix Subsystems The marketing mix subsystems support decision making regarding product introduction, pricing, promotion (advertising and personal selling), and distribution. These decisions are integrated into the sales forecast and marketing plans against which the ongoing sales results are compared. Marketing mix subsystems include: 1. Product subsystem 2. Place subsystem 3. Promotion subsystem 4. Price subsystem 5. Sales forecasting Product Subsystem The product subsystem helps to plan the introduction of new products. Continually bringing new products to market is vital in today's competitive environment of rapid change. The product subsystem should support balancing the degree of risk in the overall new-product portfolio, with more aggressive competitors assuming higher degrees of risk for a potentially higher payoff. Although decisions regarding the introduction of new products are unstructured, information systems support this process in several ways:

1. Professional support systems assist designers in their knowledge work 2. DSSs are used to evaluate proposed new products 3. With a DSS, a marketing manager can score the desirability of a new product. 4. Electronic meeting systems help bring the expertise of people dispersed in space and time to bear on the problem 5. Information derived from marketing intelligence and research is vital in evaluating new product ideas. Place Subsystem The place subsystem assists the decision makers in making the product available to the customer at the right place at the right time. The place subsystem helps plan the distribution channels for the product and track their performance. The use of information technology has dramatically increased the availability of information on product movement in the distribution channel. Examples include: 1. Bar-coded Universal Product Code (UPC) 2. Point-of-sale (POS) scanning 3. Electronic data interchange (EDI) 4. Supports just-in-time product delivery and customized delivery Promotion Subsystem

The promotion subsystem is often the most elaborate in the marketing information system, since it supports both personal selling and advertising. Media selection packages assist in selecting a mix of avenues to persuade the potential purchaser, including direct mail, television, print media, and the electronic media such as the Internet and the WEB in particular. The effectiveness of the selected media mix is monitored and its composition is continually adjusted. Database marketing relies on the accumulation and use of extensive databases to segment potential customers and reach tem with personalized promotional information. The role of telemarketing, marketing over the telephone, has increased. Telemarketing calls are well supported by information technology. Sales management is thoroughly supported with information technology. Customer profitability analysis help identify highprofit and high-growth customers and target marketing efforts in order to retain and develop these accounts. Sales force automation, involves equipping salespeople with portable computers tied into the corporate information systems. This gives the salespeople instantaneous access to information and frees them from the reporting paperwork. This increases selling time and the level of performance. Access to corporate databases is sometimes accompanied by access to corporate expertise, either by being able to contact the experts or by using expert systems that help specify the product meeting customer requirements.

Price Subsystem Pricing decisions find a degree of support from DSSs and access to databases that contain industry prices. These highly unstructured decisions are made in pursuit of the companys pricing objectives. General strategies range from profit maximization to forgoing a part of the profit in order to increase a market share. Information systems provide an opportunity to finely segment customer groups, and charge different prices depending on the combination of products and services provided, as well as the circumstances of the sale transaction. Sales Forecasting Based on the planned marketing mix and outstanding orders, sales are forecast and a full marketing plan is developed. Sale forecasting is an area where any quantitative methods employed must be tempered with human insight and experience. The actual sales will depend to a large degree on the dynamics of the environment. Qualitative techniques are generally used for environmental forecasting - an attempt to predict the social, economic, legal, and technological environment in which the company will try to realize its plans. Sales forecasting uses numerous techniques, which include: 1. Group decision making techniques are used to elicit broad expert opinion

2. Scenario analysis in which each scenario in this process is a plausible future environment 3. Extrapolation of trends and cycles through a time-series analysis. 12.3 Manufacturing Information Systems Global competitive pressures of the information society have been highly pronounced in manufacturing and have radically changed it. The new marketplace calls for manufacturing that are: 1. Lean - highly efficient, using fewer input resources in production through better engineering and through production processes that rely on low inventories and result in less waste. 2. Agile - fit for time-based competition. Both the new product design and order fulfilment are drastically shortened. 3. Flexible - able to adjust the product to a customer's preferences rapidly and cost effectively. 4. Managed for quality - by measuring quality throughout the production process and following world standards, manufacturers treat quality as a necessity and not a high-price option. Structure of Manufacturing Information Systems [Figure 12.5] Information technology must play a vital role in the design and manufacturing processes. Manufacturing information systems are among the most difficult both to develop and to implement.

TPSs are embedded in the production process or in other company processes. The data provided by the transaction processing systems are used by management support subsystems, which are tightly integrated and interdependent. Manufacturing information subsystems include: 1. Product design and engineering 2. Product scheduling 3. Quality control 4. Facilities planning, production costing, logistics and inventory subsystems Product Design and Engineering Product design and engineering are widely supported today by computer-aided design (CAD) and computer-aided engineering (CAE) systems. CAD systems assist the designer with automatic calculations and display of surfaces while storing the design information in databases. The produced designs are subject to processing with CAE systems to ensure their quality, safety, manufacturability, and cost-effectiveness. CAD/CAE systems increasingly eliminate paperwork from the design process, while speeding up the process itself. As well, the combined techniques of CAD/CAE and rapid prototyping cut time to market. Product Scheduling Production scheduling is the heart of the manufacturing information system. This complex subsystem has to ensure that an appropriate combination of human, machinery, and material

resources will be provided at an appropriate time in order to manufacture the goods. Production scheduling and the ancillary processes are today frequently controlled with a manufacturing resource planning system as the main informational tool. This elaborate software converts the sales forecast for the plants products into a detailed production plan and further into a master schedule of production. Computer integrated manufacturing (CIM) is a strategy through which a manufacturer takes control of the entire manufacturing process. The process starts with CAD and CAE and continues on the factory floor where robots and numerically controlled machinery are installed - and thus computer-aided manufacturing (CAM) is implemented. A manufacturing system based on this concept can turn out very small batches of a particular product as cost-effectively as a traditional production line can turn out millions of identical products. A full-fledged CIM is extremely difficult to implement; indeed, many firms have failed in their attempts to do so. Quality Control The quality control subsystem of a manufacturing information system relies on the data collected on the shop floor by the sensors embedded in the process control systems. Total quality management (TQM) is a management technique for continuously improving the performance of all members and units of a firm to ensure customer satisfaction. In particular, the principles of TQM state that quality comes from improving the

design and manufacturing process, rather than Ainspecting out@ defective products. The foundation of quality is also understanding and reducing variation in the overall manufacturing process. Facilities Planning, Production Costing, Logistics and Inventory Subsystems Among the higher-level decision making supported by manufacturing information systems are facilities planning locating the sites for manufacturing plants, deciding on their production capacities, and laying out the plant floors. Manufacturing management requires a cost control program, relying on the information systems. Among the informational outputs of the production costing subsystem are labor and equipment productivity reports, performance of plants as cost centers, and schedules for equipment maintenance and replacement. Managing the raw-materials, packaging, and the work in progress inventory is a responsibility of the manufacturing function. In some cases, inventory management is combined with the general logistics systems, which plan and control the arrival of purchased goods into the firm as well as shipments to the customers. 12.4 Accounting and Financial Information Systems [Figure 12.9] The financial function of the enterprise consists in taking stock of the flows of money and other assets into and out of an organization, ensuring that its available resources are properly

used and that the organization is financially fit. The components of the accounting system include: 1. Accounts receivable records 2. Accounts payable records 3. Payroll records 4. Inventory control records 5. General ledgers Financial information systems rely on external sources, such as on-line databases and custom produced reports, particularly in the areas of financial forecasting and funds management. The essential functions that financial information systems perform include: 1. Financial forecasting and planning 2. Financial control 3. Funds management 4. Internal auditing
MARKETING INFORMATION
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6 Enterprise applications 7 Developing Information Systems 8 See also 9 References 10 External links

[edit] Overview
Initially in businesses and other organizations, internal reporting was produced manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Data was organized manually according to the requirements and necessity of the organization. As computational technology developed, information began to be distinguished from data and systems were developed to produce and organize abstractions, summaries, relationships and generalizations based on the data. Early business computers were used for simple operations such as tracking sales or payroll data, with little detail or structure. Over time, these computer applications became more complex, hardware storage capacities grew, and technologies improved for connecting previously isolated applications. As more and more data was stored and linked, managers sought greater detail as well as greater abstraction with the aim of creating entire management reports from the raw, stored data. The term "MIS" arose to describe such applications providing managers with information about sales, inventories, and other data that would help in managing the enterprise. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, enterprise resource planning (ERP), enterprise performance management (EPM), supply chain management (SCM), customer relationship management (CRM), project management and database retrieval applications. The successful MIS supports a business's long range plans, providing reports based upon performance analysis in areas critical to those plans, with feedback loops that allow for titivation of every aspect of the enterprise, including recruitment and training regimens. MIS not only indicate how things are going, but why and where performance is failing to meet the plan. These reports include near-real-time performance of cost centers and projects with detail sufficient for individual accountability THE USAGE OF TALLY My name is Chetan. I just want a suggestion from you I own a small business I maintain all accounts related to my work on paper....but I want to learn tally software to keep my accounts. But I have no idea of how to use tally can u please help me out with this problem.

Solution
If you are interested to maintain your all accounts in tally, then it is not difficult to learn this software. If you know manual accounting and double entry rules, you can fastly learn tally. If you have downloaded and installed tally.erp 9 educational version for learning purpose and

when you open it in educational mode, you should keep following points while you are operating tally.erp 9.

Ist Point #

After this, first time when you open tally.erp 9, you will see company info and in this you have to create company. Simple fill the creation form and you can create company.

2nd Point #

Now check your manual balance sheet.

You will see some assets and liabilities accounts in your balance sheet with amounts.

Go to gateway of tally.erp

And make ledger accounts under different head. See direction from here.

Gateway of tally.erp 9 >> company info >> ledger >> create >> multiple ledger creation

When you are creating ledger account you have to add opening balance of your manual balance sheet items. Suppose, your balance sheet is showing building of Rs. 60,00,000, then it ledger account building under fixed asset will be open with opening balance of Rs. 60,00,0000.

3rd Point #

When you create and add all ledger accounts, you can see balance sheet in tally.erp 9. It must be same as your balance sheet which you have made from manual accounts.

4th Point #

Now, stop maintaining your accounts manually. All your accounts' balance have been automatically transferred in tally.erp 9 and now, record you transaction only in tally.

Because you are doing very small business, no need to record the transaction when happen. Collect all bills, receipts and vouchers and invoices. After week or month, feed it in tally.

Suppose, in month there are 20 new customers have purchased products from you.

Create there ledger accounts under debtor by mentioning their names. Same if you have purchased from 20 different suppliers add their names also. After this click Accounts vouchers. This button, you can see gateway of tally.erp 9 and in this right side you will receipt voucher, payment voucher, purchase voucher and sale voucher and journal voucher button. If you have graduated in Commerce, then you would know that in manual journal can also sub- division in cash book, purchase book, sale book and journal proper. Same funda is using tally.erp 9

Suppose, you have received cash or cheque from party, then enter it in receipt voucher. If you have to pay in cash or via cheque enter it in payment voucher.

5th Point # Inventory management First of all create units measurement in inventory info.

Gateway of tally.erp 9 >> inventory info >> unit measure

After this create your all stock items by mentioning opening balance of each stock item.

I do not know what is your business? But you must record all stock items in

Gateway of tally.erp 9 >> inventory info >> stock item

When you create all stock items, you can pass the voucher entry of purchase and sale.

After concentrating on different button and practicing these buttons, you can become expert with in few days.

There is no need any other work in tally.erp 9. All reports are automatically made by tally.erp 9.

TALLY PRESENTATION TRANSCRIPT y STEPS TO CREATE A COMPANY

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Go to Gateway of tally Company info

Create company

y Steps to create a Company

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Creating Company Step 1: The first thing to do is to create company. Click on F3: C mp Info button on the Button Panel to have the Company Info menu. Step 2: Now select Create Company option from Company Info. Menu either by pressing C or by clicking on this option. You have the Company Creation Screen The above screen shows various fields. These fields are discussed below: Press Enter key to go to the next field after each field entry. For editing in the above screen use Backspace or Up/Down arrow keys. Directory: It asks you for the path where you intend to create your Company/Firm. This is the Tally Anywhere feature of this software. The default data directory is C:TALLYDATA. This is the data path given in the Tally.INI file. Name: Type the name of the Company/Firm you wish to promote. The number of characters in the name of the company is nit restricted to the visible length of the space for entry. Mailing Name & Address: Type the full address of your Company/Firm. This address will appear in the reports. Statutory compliance for: The Countries (India, Indonesia, Malaysia, and Singapore.UK) are the List of Countries. The statutory features & Base Currency Symbol are enabled in accordance with the country selected. Select India from this list of countries. State: select the state from the drop down list of Indian states. PIN Code: Type the Postal Index Number. Telephone Number: Type office telephone number. E-Mail Address: Type the E-mail address for the company. This e-mail ID will be used to e-mail documents, reports and data from Tally. Currency Symbol: type the currency symbol used in your business. Type Rs. for India. Maintain: This is a compulsory entry. A window with two options pops up. The two options are as follows:

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Accounts Only: Select this if the business do not deal with any Inventory transaction, e.g. Professionals, Corporate offices Accounts-with-Inventory: It maintains both Financial Book of Accounts and Inventory.

11) Financial year From: Type the starting date of the financial year. Tally considers 12 months from the given date as financial year. Book beginning from: Type the actual date on which the Business starting date and the accounts actually began. Tally vault Password: Type a password if you wish to maintain company data in an encrypted form. Use Security Control: This is a very attractive feature of Tally which set-up authority levels that decides the right of thr user for data manipulation. Use Tally Audit features: it tracks change in transactions or voucher and in ledger master that are more that 30 days old. Changes in Narration will not be traced by Tally Audit. This is a useful tool to detect tampered data, so type Yes to achieve this option. 15. Base Currency Information: the bottom of the screen is for currency information because Tally supports multi-currency. It has ability to deal with foreign exchanges and can convert the final reports in the currency desired. The base Currency is usually your countrys currency in which you may desire to record the transactions. By default, Tally maintains the book of accounts in the Base Currency. Base Currency Symbol: the symbol types here will be used in reports. You can type any symbol: $, Rs. GBP, US$, etc. An Indian Company will type Rs. In this field. Formal Name: type the full name of the currency of this option because Rs. May stand for Indian rupee as well as Nepalese Rupees. Similarly $ may be U.S. Dollars or Australian Dollars. You may have sister-companies in different countries. At time you may like to have consolidated reports for analysis. Consolidating accounts with such type of errors can never give you the right picture. Formal names of different companies to be consolidated are matched to have error-free results. Number of Decimal Places: this signifies the fractional part of a currency. Type number from 0 to 4. In India the fractional part is paise so type 2 for an Indian Company. Show Amount in Million? Type Yes if you with the amount to be in million else type No for amount to be in lakhs and crores.

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Is symbol Suffix to Amount:- for an Indian company using Indian currency, type No because we prefix the symbol; e.g. Rs. 10001.75. But some countries write their countries as 3500Yen, 100Lira etc. that is the suffix the symbol. Put a SPACE between Amount and symbol? It is up to you whether you want a space between the symbol and the first / last digit in amount, e.g. Rs. 100 (no space between symbol and amount) or Rs 100 ( space between symbol and amount))/ Step4: Press Y to accept all the entries. Now the company gets created which can be loaded from the company info. Menu as and when desired. The screen for selecting a shown in fig. Loading /selecting a company:A company can be selected only if it exists. For loading a company press Alt and F3 keys simultaneously to invoke Company Info. Menu. Select the option Select Company in this menu by pressing S. High light the company to be selected with the help of arrow key [Up arrow key () or Down arrow key () ] from the displayed List of Companies and press Enter. Shutting a Company:Shutting a company means unloading it Press Alt and F3 simultaneously to invoke the Company info. Select Menu. Select the option Shut Company in this menu by pressing H. High light the company you wish to shut down from the list of Companies and press Enter Ledgers Ledgers are the actual account heads to which a transaction is identified. Ledgers are very important for voucher entries. In tally, Ledgers are allocated to certain groups for better control of the accounts. Steps to create Ledgers Gateway of Tally accounts Inf. Ledger or just press the highlighted alphabet L for this option. Single ledger creation: - To create a ledger press the highlighted alphabet C or highlight create option in single ledger and press the enter key. You will get the following ledger creation screen.

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Name: Type a unique name for the ledger. Alias: Give an alternate name to the ledger, if required. Under: The group classification of a ledger account is essential in tally. A group control is the usage of ledger accounts. The group classification of a ledger account can be altered anytime. Opening Balance: this is opening balance of the account taken from the previous years balance sheet. Specify whether it is a debit or credit balance by typing the alphabets D or C. Tally follow normal accounting principles of debit balances for assets and credit. Balances for liabilities. Mailing and related details: You can give the complete name and address of the party accounts (sundry debtors, Sundry creditors, loans, advances) along with its Income Tax and sales Tax numbers. When this ledger is selected, Goods Inwards or Outward Vouchers and Invoices take the addresses from here. Cost centres are applicable? This is to Maintain the Cost Centres . To invoke the Accounting Feature menu, just press F11 function key. Inventory values are affected? Inventory values are affected in sales and purchase Ledgers. So activate this option on the F11: Features menu by typing Y for sales and Purchase Ledgers. Allocate to Cost-Centres: we will have this option in the Ledger creation screen only if we have activated the option Maintain Cost- Centres? in the F11: features menu. Percentage of Tax: Activate the option allow Invoicing? In the Company Features menu and Group the Ledger under Duties and Taxes of under its Subgroup or any Group for which Used For Calculation is activated. We will have to enter the Tax rate here. Finally accept it. (Single Ledger) Step 1 . Press F12 key or on click in F12: Configure button on the Button panel. You will get the configuration screen . Step 2 . Now type Y to enable any of the options in the above screen.

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Step 3. Also invoke the Company Feature screen by clicking on F11:Features button on the Button Panel or by pressing the function the key F11 . The company feature screen gets displayed similarly. Step 4 . Activate the option in the above as per your need by typing Y against the option. Displaying ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Single Display. Step 2. Now select the ledger from the popup list by highlighting it. Step 3. And then press the Enter key . Altering ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Single Alter. Step 2. Now select the ledger from the popup list by highlighting it. Step 3. And then press the Enter key . Creating multiple ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Multiple Create. Or just press the highlighted alphabet R. you will have the Ledger Creation screen. Under Group: Type the name of the Group under which you desire to create the Ledger. If you select All Items for this field then you are permitted to create a new Group. Name of Ledger: Type the Ledger name. Under: It will take copy for the same Group name, which you have recently, selected for under Group field in the current screen. If under Group has All Items as its entry then this column is not skipped and you are allowed to specify a new group. Opening Balance: Type the opening Balance. Dr. /Cr: specify whether Debit or Credit balance. Displaying multiple ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Display.Multiple Alternative multiple ledgers:

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Step 1. Gateway of Tally Accounts Info. Ledgers Multiple Alter. Step 2: Select the Ledger to be altered from the popup list of ledgers by highlighting it. Step3: Then press the Enter key. You now have the ledger alteration screen on your Desktop Make desired change and accept it. Inventory Information Step 1. When we create a Company after selecting Accounts-with-Inventory option, we see the following screen on my desktop, with enabled Inventory Info in the menu. Select the Inventory Info. Option from the above menu to learn the features related to Inventory Management. Step2. Now press Enter . An Inventory Info. Menu gets displayed on the desktop. Creating Stock Groups: Gateway of Tally Inventory info. Stock Groups Single Create. A screen is displayed. Name: Type the name of the stock group to be created. Under: Audit consisting of existing stock groups pop-up. Selected Primary stock group if you are creating a new Stock Group. Can Quantities of items be ADDED? If the Stock Item Group Item Groups can be measured using the same unit then you can enable this option by pressing Y . Finally, accept the screen by pressing Y . Creating multiple Stock Groups: Gateway of Tally Inventory info. Stock Groups Multiple Create. Displaying multiple Stock Groups: Gateway of Tally Inventory info. Stock Groups Multiple Display. Altering multiple Stock Groups: Gateway of Tally Inventory info. Stock Groups Multiple Alter. Creating Stock Category: Step 1.

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Gateway of Tally Inventory info. Stock Category Single Create. You have a stock Category creation screen on your desktop. Step 2. In this example you are creating stock Category Consumables under Primary. So fill the Information as shown above. Displaying Stock Category: Gateway of Tally Inventory info. Stock Category Single Display. Altering Stock Category: Gateway of Tally Inventory info. Stock Category Single Altering. 2. Altering/Modifying Existing Company Press Alt and F1 keys simultaneous to invoke the Company Info. Menu. Press A key to select the alter option from the company info. Menu. Highlights the Company you wish to alter from the list of Companies and press Enter . You have Company Alteration screen on your desktop. Make the required changes and accept it.

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Name: Type the name of the Company/Firm you wish to promote. The number of characters in the name of the company is nit restricted to the visible length of the space for entry. Mailing Name & Address: Type the full address of your Company/Firm. This address will appear in the reports. Statutory compliance for: The Countries (India, Indonesia, Malaysia, and Singapore.UK) are the List of Countries. The statutory features & Base Currency Symbol are enabled in accordance with the country selected. Select India from this list of countries. State: select the state from the drop down list of Indian states. PIN Code: Type the Postal Index Number.

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Telephone Number: Type office telephone number. E-Mail Address: Type the E-mail address for the company. This e-mail ID will be used to e-mail documents, reports and data from Tally

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Currency Symbol: type the currency symbol used in your business. Type Rs. for India. Maintain: This is a compulsory entry. A window with two options pops up. The two options are as follows:
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Accounts Only: Select this if the business do not deal with any Inventory transaction, e.g. Professionals, Corporate offices Accounts-with-Inventory: It maintains both Financial Book of Accounts and Inventory.

11) Financial year From: Type the starting date of the financial year. Tally considers 12 months from the given date as financial year. Book beginning from: Type the actual date on which the Business starting date and the accounts actually began. Tally vault Password: Type a password if you wish to maintain company data in an encrypted form. Use Security Control: This is a very attractive feature of Tally which set-up authority levels that decides the right of the user for data manipulation.

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Use Tally Audit features? It tracks change in transactions or voucher and in ledger master that are more that 30 days old. Changes in Narration will not be traced by Tally Audit. This is a useful tool to detect tampered data, so type Yes to achieve this option. xii. Base Currency Information: the bottom of the screen is for currency information because Tally supports multi-currency. It has ability to deal with foreign exchanges and can convert the final reports in the currency desired. The base Currency is usually your countrys currency in which you may desire to record the transactions. By default, Tally maintains the book of accounts in the Base Currency. Base Currency Symbol: the symbol types here will be used in reports. You can type any symbol: $, Rs. GBP, US$, etc. An Indian Company will type Rs. In this field.

Formal Name: type the full name of the currency of this option because Rs. May stand for Indian rupee as well as Nepalese Rupees. Similarly $ may be U.S. Dollars or Australian Dollars. You may have sister-companies in different countries. At time you may like to have consolidated reports for analysis. Consolidating accounts with such type of errors can never give you the right picture. Formal names of different companies to be consolidated are matched to have error-free results.

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Number of Decimal Places: this signifies the fractional part of a currency. Type number from 0 to 4. In India the fractional part is paise so type 2 for an Indian Company. Show Amount in Million? Type Yes if you with the amount to be in million else type No for amount to be in lakhs and crores. Is symbol Suffix to Amount:- for an Indian company using Indian currency, type No because we prefix the symbol; e.g. Rs. 10001.75. But some countries write their countries as 3500Yen, 100Lira etc. that is the suffix the symbol. Put a SPACE between Amount and symbol? It is up to you whether you want a space between the symbol and the first / last digit in amount, e.g. Rs. 100 (no space between symbol and amount) or Rs 100 ( space between symbol and amount))/ Step4: Press Y to accept all the entries. Now the company gets created which can be loaded from the company info. Menu as and when desired. The screen for selecting a shown in fig.

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Loading /selecting a company:A company can be selected only if it exists. For loading a company press Alt and F3 keys simultaneously to invoke Company Info. Menu. Select the option Select Company in this menu by pressing S. High light the company to be selected with the help of arrow key [Up arrow key () or Down arrow key () ] from the displayed List of Companies and press Enter. Shutting a Company:Shutting a company means unloading it Press Alt and F3 simultaneously to invoke the Company info. Select Menu. Select the option Shut Company in this menu by pressing H.

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High light the company you wish to shut down from the list of Companies and press Enter

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Ledgers Ledgers are the actual account heads to which a transaction is identified. Ledgers are very important for voucher entries. In tally, Ledgers are allocated to certain groups for better control of the accounts. Steps to create Ledgers Gateway of Tally accounts Inf. Ledger or just press the highlighted alphabet L for this option. Single ledger creation: - To create a ledger press the highlighted alphabet C or highlight create option in single ledger and press the enter key. You will get the following ledger creation screen.

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Name: Type a unique name for the ledger. Alias: Give an alternate name to the ledger, if required. Under: The group classification of a ledger account is essential in tally. A group control is the usage of ledger accounts. The group classification of a ledger account can be altered anytime. Opening Balance: this is opening balance of the account taken from the previous years balance sheet. Specify whether it is a debit or credit balance by typing the alphabets D or C. Tally follow normal accounting principles of debit balances for assets and credit. Balances for liabilities. Mailing and related details: You can give the complete name and address of the party accounts (sundry debtors, Sundry creditors, loans, advances) along with its Income Tax and sales Tax numbers. When this ledger is selected, Goods Inwards or Outward Vouchers and Invoices take the addresses from here. Cost centres are applicable? This is to Maintain the Cost Centres . To invoke the Accounting Feature menu, just press F11 function key.

Inventory values are affected? Inventory values are affected in sales and purchase Ledgers. So activate this option on the F11: Features menu by typing Y for sales and Purchase Ledgers.

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Allocate to Cost-Centres: we will have this option in the Ledger creation screen only if we have activated the option Maintain Cost- Centres? in the F11: features menu. Percentage of Tax: Activate the option allow Invoicing? In the Company Features menu and Group the Ledger under Duties and Taxes of under its Subgroup or any Group for which Used for Calculation is activated. We will have to enter the Tax rate here. Finally accept it. (Single Ledger) Step 1 . Press F12 key or on click in F12: Configure button on the Button panel. You will get the configuration screen . Step 2 . Now type Y to enable any of the options in the above screen. Step 3. Also invoke the Company Feature screen by clicking on F11: Features button on the Button Panel or by pressing the function the key F11 . The company feature screen gets displayed similarly. Step 4 . Activate the option in the above as per your need by typing Y against the option.

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Displaying ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Single Display. Step 2. Now select the ledger from the popup list by highlighting it. Step 3. And then press the Enter key . Altering ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Single Alter. Step 2. Now select the ledger from the popup list by highlighting it. Step 3. And then press the Enter key .

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Creating multiple ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Multiple Create. Or just press the highlighted alphabet R. you will have the Ledger Creation screen.

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Under Group: Type the name of the Group under which you desire to create the Ledger. If you select All Items for this field then you are permitted to create a new Group. Name of Ledger: Type the Ledger name. Under: It will take copy for the same Group name, which you have recently, selected for under Group field in the current screen. If under Group has All Items as its entry then this column is not skipped and you are allowed to specify a new group. Opening Balance: Type the opening Balance. Dr./Cr: specify whether Debit or Credit balance. Displaying multiple ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Multiple Display. Alternative multiple ledgers: Step 1. Gateway of Tally Accounts Info. Ledgers Multiple Alter. Step 2: Select the Ledger to be altered from the popup list of ledgers by highlighting it. Step3: Then press the Enter key. You now have the ledger alteration screen on your Desktop Make desired change and accept it.

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Inventory Information Step 1. When we create a Company after selecting Accounts-with-Inventory option, we see the following screen on my desktop, with enabled Inventory Info in the menu. Select the Inventory Info. Option from the above menu to learn the features related to Inventory Management. Step2. Now press Enter . An Inventory Info. Menu gets displayed on the desktop.

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Creating Stock Groups : Gateway of Tally Inventory info. Stock Groups Single Create. A screen is displayed. Name : Type the name of the stock group to be created. Under : Alidt consisting of existing stock groups pop-up. Selected Primary stock group if you are creating a new Stock Group. Can Quantities of items be ADDED? If the Stock Item Group Item Groups can be measured using the same unit then you can enable this option by pressing Y . Finally, accept the screen by pressing Y . Creating multiple Stock Groups: Gateway of Tally Inventory info. Stock Groups Multiple Create. Displaying multiple Stock Groups: Gateway of Tally Inventory info. Stock Groups Multiple Display. Altering multiple Stock Groups: Gateway of Tally Inventory info. Stock Groups Multiple Alter.

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Creating Stock Category: Step 1. Gateway of Tally Inventory info. Stock Category Single Create. You have a stock Category creation screen on your desktop. Step 2. In this example you are creating stock Category Consumables under Primary. So fill the Information as shown above. Displaying Stock Category: Gateway of Tally Inventory info. Stock Category Single Display. Altering Stock Category:

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Gateway of Tally Inventory info. Stock Category Single Altering.

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Altering/Modifying Existing Company Press Alt and F1 keys simultaneous to invoke the Company Info. Menu. Press A key to select the alter option from the company info. Menu. Highlights the Company you wish to alter from the list of Companies and press Enter . You have Company Alteration screen on your desktop. Make the required changes and accept it.