Moving to New Financial Year

Yarab A |Updated on: July 14, 2022

It’s that time of the year again, the business owners alongside their financial team hustle and bustle around to get their books and financial statement right. Yes, you rightly guessed! The new financial year is about to begin.

The extra push for businesses and their teams during the last few weeks of the financial year is nothing new. It’s the same every year. If you are a business using TallyPrime, you can end the financial year with little drama as possible and be ready to welcome the new financial year.

With this in mind, we have put together different ways to be ready for the next financial year using TallyPrime.

Moving data to new financial year

You may do all that is possible to close your books on the last day of the financial year, in reality, you will have spillover, or certain activity can only be carried out after the closure of the financial year.

While you got all the time to do that, but what’s more important here is to move to the new financial year and start the books from the 1^st Day of the new financial year. With Tally, moving into the new financial year is as simple as changing your period.

To change the current period, Go to Gateway of Tally > click F2: Period and enter the dates.

Doing this helps you:

• Continue to enter vouchers in the same company data
• Ensure zero downtime, helping you start the new year on a hassle-free note

Splitting company data

If you choose to separate your previous financial year into a different company, split company data will be helpful. Ideally, it is performed when the closure activities such as analysis, audits, all adjustments etc. in books of the previous financial year are completed.

To ensure the splitting activity is smooth, you need to perform the data verification process before splitting. This automatically detects possible errors in the data.

• Click on 'Data' available in top menu> Split > Verify Data
• Select the company you want to split
• If there are any errors, the list will be shown for you to correct it

To split the company data, again click on 'Data' available in top menu >Split > Split Data >Select Company. Once you’ve selected the company, enter the date in the Split From field and press Enter.

When you split the data, the original data is retained, and two new companies with unique names and date are created. You can rename the split company as required and save the original data in another location.

Splitting company data helps you:

• Secure old data and start work in a different company
• Maintain separate company for each financial year
• Carry forward all ledger balances automatically
• Accurately split your transactions of the previous financial year from the current financial year

Create new books and import the data

If you wish to create a new company, export the closing balances of the ledgers and stock items of the previous company, and import them as opening balances in the new company. This helps you to clean your data by removing redundant masters such as inactive ledgers, obsolete stock items etc.      

• To create new books of accounts:
  • Click 'Company'option available in the top menu.
  • Select 'Create' and mention the company details
  • Enter 1-4-2021 as the Financial year begins from 
    
    
• To export closing balances from Previous F.Y company:
  
  
  • Click 'E: Export' option available in the top menu or press Alt + E
  • Select Masters
  • Click on Configure
  • Press Enter to enable ‘Export closing balance as opening’
  • Mention the closing balance date and press ESC to go back 
  • Press Enter on Send to export the details in  XML file

• To import closing balances as opening balances in the new company
  
  
  • Click 'O: Import' option available in the top menu or press Alt + O
  • Select Master
  • Mention or select XML file location ( E.g. C:\TallyPrime\Master.xml)
  • Select ‘Modify with New Data’ in Treatment of entries already existing
  • Press Enter to import

On completing the import process, you can compare the masters of both importing and exporting company from the statistics report. To view statistics, press Alt + G for Go To > Type and select statistics report from the list.  If you wish to clean up the redundant or inactive ledgers or stock items, you can delete those.

Upgrading to the latest release

At Tally, we come up with regular releases to make the product even more useful and provide an amazing experience for users. To make sure you’re not missing out on any important feature, it is important to always stay updated.

TallyPrime, our new business management simplifies the lives of business owners through simple to use business software, insightful reports, multi-tasking & much more. Yet to upgrade? Here is the link to download the latest release of TallyPrime

Already in TallyPrime but yet to upgrade to the latest release of TallyPrime? Here is how you can upgrade. 

Click  'F1:Help' option available in top menu >Upgrade>Select the latest release and press 'Enter' > Select 'Update' > Say 'Yes' to confirmation message > Again, say 'Yes' to restart the TallyPrime with administrator rights. Next, TallyPrime will restart in administrator mode to update the product.

Note: You need to have an active Tally Software Services (TSS) subscription to upgrade to the latest release. 

New changes or policies from 1st April 2021

Here is the list of new changes or policies related to GST and other statutes to be applicable from 1st April 2021

•  e-Invocing from 1st April 2021 for businesses with turnover exceeding 50 crores
• HSN Code on invoices at 4 and 6 digits mandatory from 1st April 2021
• Dynamic quick response (QR) code on B2C invoices for businesses with turnover exceeding 500 crores

Watch Video on How to Move to the New Financial Year in TallyPrime