Tally is powerful accounting software, which is driven by a technology called concurrent multi-lingual accelerated technology engine. It is easy to use software and is designed to simply complex day to day activities associated in an enterprise. Tally provides comprehensive solution around accounting principles, inventory and data integrity. Tally also has feature encompassing global business. Tally software comes with easy to use interface thus making it operationally simple.
Tally accounting software provides a solution around inventory management, stock management, invoicing, purchase order management, discounting, stock valuation methodology, etc.
Tally accounting software also comes with drill down options, which can track every detail of transaction. It helps in maintaining simple classification of accounts, general ledger, accounts receivable and payable, bank reconciliation, etc.
The technology employed by tally makes data reliable and secure. Tally software supports all the major types of file transfer protocols. This helps in connecting files across multiple office locations.
Tally accounting software is capable of undertaking financial analysis and financial management. It provides information around receivables turnover, cash flow statement, activity consolidation and even branch accounting.
Tally accounting software is east to set up and simple to use. A single connection can support multiple users. It can be easily used in conjunction with the Internet making possible to publish global financial reports.
Tally accounting software can seamlessly connect with various Microsoft applications.
Benefits of Tally Accounting Software
- Any business owner understands the importance of maintaining proper books of account.
- This practice ensures that finance for the company is always in order and are correct at all given points of time.
- Company should always be aware of its financial positions.
Earlier, most of the businesses were employing manual practice in maintaining books of account.
- However, with the advent of modern information technology, this task can be performed by accounting software.
- Tally is one such all powerful accounting software.
- Tally accounting software provides a solution to all the problems real businesses have to encounter.
- Single software takes care of all tasks required for enterprise management.
- Accounting task such as records keeping, accounts receivable and payable management and bank reconciliation are made simple through tally.
- Financial management is also made simpler under Tally software.
- The software allows management of finances across multiple locations can handle multiple currency transactions, manage cash flow and interest payment.
Thus, Tally software is flexible, reliable, secure, easy to use and affordable.
MS Excel and Financial Decision-Making Model
Excel 2010 features rich analytical functions such as Pivot Tables, Advanced Graph and Decision Analytics. The current excel have developed functionality and reduces the dependency on VBA codes. Excel has formula groups and nested functions, which are able to undertake major of financial calculations. Conditional formula such as logic, lookup, indirect and match functions help in data analysis and What-If analysis.
Excel provides the basic framework to develop simple and manageable financial models. Though excel framework is unstable for certain type of analysis, but still it functionalities and compatibility make it an ideal tool for finance decision making.
Capability Maturity Models
- When organizations want to be certified for their quality or operational excellence, they usually turn to quality frameworks like Six Sigma, Kaizen, or TQM. These are just representative of the different quality and operational excellence models and there are many other frameworks as well.
- Similarly, there are process capability models like the SEI-CMM model (Software Engineering Institute – Capability Maturity Model) or the iCMM, which is specific to software companies, and the PCMM, which is an indicator of the HRM process capability or the people management capability.
- All these models pertain to how well the organizations are mature in terms of the Processual aspects. For instance, for a long time in the 1990s and the 2000s, many software companies made it a point to get themselves certified as SEI-CMM capable because the trend and the fad during those decades was for Processual maturity which was widely seen as an indicator of how well these companies managed their processes.
- Apart from this, there were other drivers of change like the widespread perception that Asian software companies (especially in India) were not processual to the extent that the western companies were. This was the reason why the SEI-CMM model was widely adopted by Indian software companies as it was touted as a badge of Processual maturity.
The SEI-CMM Framework
- These frameworks like the quality and the operational excellence frameworks were based on how defined and optimizing the companies were with respect to processes and maturity in terms of quality and operational excellence.
- The SEI-CMM model had five stages that were initial or undefined, repeatable, defined, managed, and optimizing that were deemed to indicate the extent to which the organization’s processes were mature.
- The first stage was when the organizations did not have any defined processes in place and this stage was supposed to mean that the organization resembled a chaotic and unplanned approach to processes. The second stage was when the processes in the organization were mature enough to be repeatable which meant that the organization was able to repeat them across the organization.
- The third stage was when the processes were defined though not managed which meant that the company was yet to apply standard metrics for determining Processual maturity.
- The third stage was when the knowledge from a particular project could be carried over to the next project and where the processes were mature enough to be replicated across the organization.
- The fifth stage or the highest maturity stage was when the organization was capable of optimizing the processes with each iteration, which meant that there was a conscious continuous improvement plan in place.
How Asian companies view the CMM Model
- These stages were deemed indicators of how well the organization had matured in terms of process capability and how well the organization was engaging in process improvement with each iteration.
- It is interesting to note that the trend of process maturity was seen by many in Asia as a worthy business model whereas some behemoths like Microsoft are still not process mature.
- The reason for this as advanced by some experts is that process maturity is not the holy grail of innovative companies like Microsoft, Google, and Apple that thrived on instant improvement and improvisation.
- When contrasted with the earlier assertion that this CMM framework was adopted widely in the East, the implication is that the Indian and Chinese companies were eager to portray themselves as being mature in terms of processes and saw this certification as a route to proving themselves to be on par with the western companies that were already mature according to the CMM framework.
Enterprise Resource Planning System
As organization started moving towards enterprise approach, focus started shifting from function to process. Delivering customer delight became not just a sales function, but is part of the performance delivery process. This change of focus reorganized company structures. Earlier individual department had their own system catering to their own needs and demand. This led to duplication of data, lack of integration between department/systems and continuity in flow of information.
ERP system looks at the process as a whole. For example, a goods receipt will lead to update in stock inventory, update in purchase order history, update accounts payable, and update need of inspective of new stock.
ERP system leads to removal of data duplication as one entry or activity can be captured just once, and this record cannot be accessed without proper authorization.
ERP systems lead to standardization of data as entry fields are not left to user discretion. ERP System helps in data tracking from origin to destination.
Procurement as a Function
Procurement departments are found in most of the organization. There are responsible for purchase of raw material, office supplies, office equipment, facility maintenance, etc. It is important for them to know and understand the e-procurement concept so that they can add efficiency and effectiveness to the whole process.
Procurement managers must have complete understanding of various e-procurement applications. He must be able to identify processes, which can make procurement effective. He should have understanding of e-procurement benefit. He should understand risk associated with e-procurement implementation.
Finally, certification according to the CMM model has its advantages, these outweigh the costs, and the time and effort put in by organizations to get themselves certified. This is because unlike the industry leaders who are anyway perceived to be role models despite not being certified, the Asian companies had a need to portray themselves as being process capable and process mature.