Starting New Financial Year : Is it time to create a new company ?

Shailendra

17 years ago

March ending and April starting is very crucial period for every accounting professional. It is time to finalize the old books as well as starting the new ones also. Accounting professional are busy closing the books and managing the returns etc. It is very busy time for a Tally users too. Tally users are busy but for various reasons. Some of them would be starting a new feature of Tally in their accounting like invoicing or inventory or payroll from current financial year while others would be busy starting afresh using Tally. What ever the reason may be but one question comes in the mind is,

Should i start with a new company to start the accounts in next financial year?

Is it really time to create new company? Lets explore.

Creating a new company costs nothing but it can cause extra burden on you as well as it can save you from some extra hassles also. You need a new company where as you can also do with current company, all depends on your needs and situation.

You need to create a new company in following cases only.

If you are a first time user of Tally and you have no account in Tally.
You are creating a new firm and separate accounting is needed.
Previous company you have created has too many errors and irregularities and beyond rectification.

For all other reasons you need not to create separate company as you can do with the current one.

If you have to just do accounting in new financial year.
If you have to activate some extra feature like payroll or excise or any other feature.

You can do it in current company.
What you have to do it is extend the financial period in Gateway of Tally. Press Alt + F2 and enter the period as from 1/4/2007 to 31/3/2009. Your Gateway of Tally would look like this.

This way you can enter the transactions in previous year as well as in the new financial year. Choosing financial year of more then one year has only one drawback and that is you have a danger of entering vouchers in back year as it is open now. you are entering date as 1/4 and it can go in 1/4/07 as well as in 1/4/08 so you have to be careful.

Later on when you have finalize the accounts or year 2007-08 you can split the company on 1/4/08 and you would get a new company on which you would get the openings of all ledgers automatically.

Share this: