Welcome Millenials, in this post today we will be learning the basics of accounting and how to manage our accounting affairs with the use of the tally software.
Why should you learn about tally? and what you should even bothered about accounting cause this might be the least favorite subject for you back in shool days.
well let me tell you something mean gene ^^, you want to become a millionare, you have to have the skill of just looking at raw numbers done by your business and the transaction record and can prepare the plan for future success, for that you gotta learn how to read your accounts, transactions, exchange of goods and services, profit & Loss etc.
how do you planning on doing that? manually?
thats were a software like tally comes in handy, where you just have to record your transactions and the software using it’s algorithm will create a report which will summarize, analyze the transaction, and the using this organized information users can use this for decision making purposes.
Accounting help us to have information regarding the following : –
- Amount and nature of income.
- Amount and nature of expenses.
- Size and volume of capital employed.
- Increase & Decrease in capital employed.
- The nature and value of assets owned.
- The nature and value of liabilities outstanding.
- Payment receipt
- Payment due
- Bank Reconciliation Statement
- GST RETURN
- Amount of tax paid to Gov.
Simply put you can’t run a successful business or household if you can’t account for the daily transactions happening and create flexible report for your clarity.
Ken Johnson once said that –
“Making bad business decisions is one thing, but hiding and covering up is another”Ken Johnson
So not learning Accounting methods and unable to automate business model is a bad decision, and this you can’t even hide it, it is designed to be a failure.