9 Critical Questions That Tally Prime Reports Answer

9 Critical Questions That Tally Prime Reports Answer

TallyPrime has some really awesome reports that can be edited to suit your business reporting needs. Tally Prime software is said to have about 300+ insightful reports. These reports provide a complete 360-degree view of a business’s financial health.

The software also allows you to view reports from different perspectives by enabling or disabling certain information and providing the feature to ‘Save view’. Overall it provides you with all the necessary information in a well-structured format so that decision-making becomes easy. Here are some very critical business questions and how Tally provides answers through its reports –

1. What Is The Financial Stability Status Of My Business?

The Balance sheet of a business is a good indicator of its financial health of a business. You can check the balance sheet in Tally by typing ‘balance sheet’ in the ‘Go to’ search bar. Or you can go to the ‘Gateway of Tally’ screen and click on ‘Balance sheet’. The balance sheet will show you the various assets and liabilities of the business for the selected year. The net worth of a business, which is the difference between the total assets and total liabilities, is the main indicator of the health of a business.

2. How Much Of A Particular Stock Is Available?

For some businesses like manufacturing, retailers, traders, and wholesalers, stock or inventory plays a very crucial role. The speed or rate of movement of stock decides the failure or success of such businesses. The re-order level of stock also depends on the movement of stock. Thus it becomes important for businesses to have a report that clearly mentions in detail the availability and quantity of each stock. The stock summary report in Tally provides a detailed report consisting of the stock items, their quantity, rate, and value. You can find this report in the Gateway to Tally > Stock Summary.

3. What Is The Most Optimum Source Of A Particular Stock Item?

Deciding and finalizing a supplier or vendor depends on the cost and quality of the products they offer. Analyzing this stock requires a stock movement analysis report. Tally provides an in-detail stock item movement analysis report. You can analyze the movement of your stock by going to Gateway of Tally > Display > Inventory Books > Movement Analysis.

4. What Is The Liquidity And Solvency Of My Business?

There are three ways of understanding the liquidity and solvency of a business – cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities. In TallyPrime, you can check the cash flow by going to the Gateway of Tally > Display More Reports > Cash Flow. You can also press Alt+G (Go To) > type or select Cash Flow > press Enter.

5. What Pending Amount Is To Be Received And By Whom?

The pending amount is the receivables a company has. Keeping a track of the various outstanding amounts is necessary so that timely follow-up for payment can be taken and important cash flow-related decisions can be made. Tally has a very simple and insightful Outstanding payment report. You can find it by going to Gateway of Tally > Display > Statements of accounts > Outstanding > Receivables. You can also find the bills receivable report by searching it in the ‘Go To”‘ bar.

6. What Is The Revenue Growth, Net Profit Margin, And Gross Profit Of My Business?

The revenue growth, net profit margin, and gross profit are all indications of the health of the business. In TallyPrime, you can check the profit and loss report by going to Gateway of Tally > Profit & Loss A/c. This report shows you the opening stock, the direct and indirect expenses as well as the net profit/ net loss.

7. How Many E-Invoices Have Been Generated, How Many Altered, And How Many Cancelled?

E-invoicing is being made mandatory for businesses in a phased manner. As of 15th December 2022, E-invoicing is made mandatory for B2B businesses having a turnover of above 10 crores and soon it will also include businesses with a turnover of 5 crores. As Tally is a GST Suvidha Provider, it is directly connected with the GST portal and the E-invoicing portal. And thus it generates E-invoices smoothly. It also shows a complete detailed report of the e-invoices created, canceled, or altered. You can check this report by going to the Gateway of Tally > Display More Reports > GST Reports > e-Invoice > press Enter.

8. How Do I Identify My Quickest And Slowest Moving Inventory?

The movement of inventory needs to be studied from time to time. It provides insights about what should be the most efficient re-order level and how to optimally utilize the different resources. Inventory planning is one of the most important tasks to ensure zero waste. Inventory movement can be studied using the stock aging report in Tally. You can find it here Gateway of Tally > Display More Reports > Statement of Inventory > Ageing Analysis. This report shows you the quantity of stock and how old the stock is on the basis of its purchase date. Period slabs can be user-defined.

9. Where Can I Find The Complete Details Of My Available Stock?

Retrieving stock details quickly is a need for most businesses with a large number of inventory stocks. Tally Prime provides a detailed report of stocks called the Stock Query report. This report can be accessed from Gateway of Tally > Display More Reports > Statements of Inventory > Stock Query. Complete details like Part No., Stock Group, Stock Category, available Closing Quantity & Balance, Cost Price, Std. Selling Price, Costing Method Market Valuation Method, and so on are available in Tally.

These reports can further be configured to provide more information. In Tally Prime, you can save a report view or configuration so that next time you do not have to re-configure. There are many other reports in Tally which provide insights and answer different business and strategy-related questions. You can also automatically generate unique Excel-based MIS reports on the basis of Tally data using the Sheet Magic report writer tool in Tally.

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