Don’t go by the title Literally !! You need not to virtually split you company to start a new financial year. In fact you have to double your company in new financial year. And Tally would be your tool in this en devour. Please read the title as “How to split a Tally company to start a new financial year“.
This should be ideally your final step for closing your last year accounting transaction. Although by this time tally users have started transaction in new financial year but balance sheet for last year would be in final stages.
This should be ideally your final step for closing your last year accounting transaction. Although by this time tally users have started transaction in new financial year but balance sheet for last year would be in final stages.
The prerequisites
Here are some pre requisite of splitting a company:
- You should have posted all entries pertaining to last financial year like closing balances, adjustment entries, depreciation entries etc. Else Wait!
- You should have adjusted all Forex Gaines/Losses. you can verify that no unadjusted forex gain/ loss is shown in balance sheet.
- There should be no purchase bill or sales bill pending . Go to profit & Loss statement or go to inventory statements to see any purchase bill pending or sales bill pending. The path is :
Gateway of Tally -> Display -> StatemEnts of Inventory
Don’t forget to take the backup of the data first.
The Purpose
The Purpose
Splitting a company data is helpful in easy of operation of company. As during the year company data goes on increasing it slows down the tally operation. Splitting makes company lightweight. A data for one year becomes safe and unwanted and accidental changes in previous year can be prevented by splitting the company.
The Procedure
The procedure is very simple. What you have to decide is which is the company you want to split and what is the date on which you want to split. The company data is on which you are working and the date is usually 1-April of the current year e.g 1-April-2008 for now. You can split the company on half yearly basis also on 1-Sep. if half yearly results are finalized.
Open the company to split. From Gateway of Tally press Alt+F3. Select SPlit Company Data from menu option and Select the Company to split. You would find following screen.
Open the company to split. From Gateway of Tally press Alt+F3. Select SPlit Company Data from menu option and Select the Company to split. You would find following screen.
It would create two new companies based on your date. You have to continue working in the second company. It is worth noticing that your current company is still there. So you have three companies and you have to continue working in the company ending (From 1-Apr-2008). You would find all the openings are there for respective ledgers.