The best thing in tally is that it does not follow a tailor made accounting pattern but allows the user to customize its according to his/her requirements. Initially you have to setup an accounting chart for the company.
¨ Creating Master Accounts 
You can create master for both accounts and inventory by providing information regarding both accounts and inventory. We will start from creating account masters.
¨ Account Information 
In order to work on the master of accounts of a company, first activate the desired company then Gateway of Tally menu appear on the screen

(Figure 2.1)

Select option “Account Info”
Then following menu will appear:

(Figure 2.2)

¨ Group
During manual accounting the accounts (ledger) are grouped upon preparation of Trial Balance to prepare Profit & Loss account and Balance Sheet which reflect the final accounts of the company. In tally the concept remains analogous. Following screen will appears when you select Group option.

(Figure 2.3)

Means you can create, display, alter single and multiple account groups.
¨ Ledger
The next option after group in Account info menu is Ledger( See following figure 2.4)
In this menu you can create, display and alter single and multiple ledger accounts.

(Figure 2.4)

¨ Voucher Types
A voucher is basically an on-line document for recording day to day transactions and is perhaps the most frequently hunted area of Tally. Tally by default provides 18 types of predefined vouchers are unable to fulfill your requirements then Tally also gives you a provision to alter these existing types according to you need. For example, Tally provides a ‘Payment voucher’, if you need more than one type of payment voucher, say Petty cash Payment voucher and Cash payment voucher then Tally has a provision to create these new types. Following are the voucher type provided by Tally.