Understanding how to prepare balance sheet in Tally is essential for modern businesses seeking accurate financial reporting. As we navigate through 2026, TallyPrime continues to be the leading accounting software for generating financial statements efficiently. This comprehensive guide will walk you through the complete process of creating a balance sheet in Tally, ensuring your financial records are accurate and compliant.
A balance sheet is a fundamental financial statement that displays your company’s assets, liabilities, and equity at a specific point in time. When you prepare balance sheet in Tally, the software automatically compiles data from your ledgers and vouchers to create this crucial financial document. The balance sheet follows the fundamental accounting equation: Assets = Liabilities + Equity. In TallyPrime 2026, the balance sheet generation has become more intuitive, with enhanced features for customization and compliance with the latest accounting standards. The software automatically categorizes your accounts and presents them in a format that meets statutory requirements.
Before you learn how to prepare balance sheet in Tally Prime, ensure you have completed these essential steps:
Company Creation: Your company must be properly set up in Tally with correct financial year dates, address details, and tax registration numbers.
Chart of Accounts Setup: All ledgers must be created under appropriate groups such as Assets, Liabilities, Capital Account, Current Assets, Fixed Assets, and Current Liabilities.
Voucher Entry Completion: All financial transactions including sales, purchases, payments, receipts, journal entries, and contra entries must be recorded accurately.
Bank Reconciliation: Ensure all bank statements are reconciled with your Tally records for accurate cash and bank balances.
Step 1: Access the Gateway of Tally
Launch TallyPrime and select your company from the list. You’ll land on the Gateway of Tally, which serves as your navigation hub for all accounting functions.
Step 2: Navigate to Balance Sheet Report
From the Gateway of Tally, follow this path:
– Press Alt + G (Go To) or click on “Display More Reports”
– Select “Balance Sheet” from the list of financial statements
– Alternatively, you can use the keyboard shortcut Alt + F1 to directly access the balance sheet
Step 3: Select the Reporting Period
Once you access the Tally balance sheet, you’ll need to specify the period:
– The default period shown is usually the current financial year
– Press F2 to change the period if needed
– Enter the specific date range or select a predefined period
– Press Enter to confirm
Step 4: Review the Balance Sheet Format
Tally displays the balance sheet in either horizontal or vertical format. The standard format in Tally Prime 2026 includes:
Liabilities Side: Share capital, reserves and surplus, secured loans, unsecured loans, current liabilities, and provisions
Assets Side: Fixed assets, investments, current assets (including inventory, debtors, cash and bank), loans and advances, and miscellaneous expenditure
Step 5: Customize the Balance Sheet View
To prepare balance sheet in Tally according to your specific requirements:
– Press F12 (Configure) to access configuration options
– Enable or disable options like Show Schedules, Show Additional Details, or Comparative Balance Sheet
– Set up columnar balance sheet for multiple period comparison
– Configure drill-down options to view detailed ledger information
Comparative Balance Sheet
The comparative balance sheet feature allows you to view balance sheet in Tally for multiple periods simultaneously. This is particularly useful for trend analysis and financial planning:
– Press Alt + F5 (Detailed) when viewing the balance sheet
– Select “Columnar Balance Sheet”
– Choose the number of periods to compare (usually 2-3 years)
Schedule-Based Balance Sheet
For companies requiring detailed schedules as per Companies Act requirements:
– Enable “Show Schedules” in configuration
– Tally automatically creates schedules for fixed assets, investments, inventories, and other major categories
– Each schedule provides detailed breakup of the main line items
Balance Sheet Export Options
After you create balance sheet in Tally, you can export it in various formats:
– Press Alt + E for export options
– Available formats include Excel, PDF, HTML, and XML
– Choose the format based on your reporting or sharing requirements
Balance Sheet Not Tallying
If your Tally Prime balance sheet doesn’t balance:
– Check for incomplete voucher entries
– Verify that all ledgers are grouped correctly
– Look for unadjusted opening balances
– Review suspense accounts for unreconciled entries
– Use the “Balance Sheet Differences” report to identify discrepancies
Missing Accounts or Groups
Sometimes certain ledgers or groups don’t appear on the balance sheet:
– Ensure ledgers are created under appropriate primary groups
– Check if ledgers have zero balances (configure to show zero balance accounts)
– Verify that the date range includes the transactions
Incorrect Asset or Liability Classification
If accounts appear on the wrong side:
– Review the group classification of your ledgers
– Under Gateway of Tally, go to Chart of Accounts
– Select the ledger and press Alt + D (Detailed)
– Change the “Under” field to the correct group
Regular Data Entry: Don’t wait until year-end to enter transactions. Maintain daily or weekly data entry schedules to ensure accuracy when you generate balance sheet in Tally.
Periodic Reviews: Generate monthly balance sheets to catch errors early. This proactive approach helps identify discrepancies before they become major issues.
Backup Your Data: Always create backups before making significant changes or before financial year-end closures. TallyPrime offers automatic backup features that should be enabled.
Use Cost Centers: For businesses with multiple departments or locations, utilize cost centers to generate segmented balance sheets for better analysis.
Enable Security Controls: Set up user permissions to prevent unauthorized modifications to financial data, especially before finalizing annual statements.
The balance sheet works in conjunction with other financial statements in Tally:
Profit & Loss Account: Press Alt + F1 while viewing the balance sheet to toggle to the profit and loss statement. The net profit/loss from P&L automatically reflects in the balance sheet under reserves and surplus.
Cash Flow Statement: Access this through Display More Reports to understand the movement of cash and cash equivalents during the period.
Ratio Analysis: Tally Prime 2026 offers built-in ratio analysis tools that use balance sheet data to calculate liquidity ratios, solvency ratios, and efficiency ratios.
When you prepare balance sheet in TallyPrime 2026, ensure compliance with:
– Companies Act requirements for your jurisdiction
– Indian Accounting Standards (Ind AS) or IFRS as applicable
– GST and tax regulations that may affect asset and liability presentation
– Industry-specific reporting standards if applicable
Tally Prime includes templates and formats that are pre-configured for statutory compliance, making it easier to meet regulatory requirements.
Mastering how to prepare balance sheet in Tally is crucial for effective financial management in 2026. With TallyPrime user-friendly interface and powerful automation features, generating accurate balance sheets has become simpler than ever. By following this comprehensive guide and implementing best practices, you can ensure your financial statements are accurate, compliant, and ready for stakeholder review.
Remember that the balance sheet is more than just a statutory requirement—it’s a powerful tool for understanding your business’s financial health. Regular balance sheet preparation and analysis help you make informed decisions, secure financing, and drive business growth.
Whether you’re a small business owner, accountant, or finance professional, proficiency in Tally’s balance sheet features will enhance your financial reporting capabilities and contribute to better business outcomes in 2026 and beyond.
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