Financial Statements for Non-Corporate (NC) Entities in TallyPrime 6.2

Published on: 20-08-2025

Financial Statements for Non-Corporate (NC) Entities in TallyPrime 6.2

Introduction

The financial reporting needs of Non-Corporate (NC) entities such as sole proprietorships, partnerships, small businesses, NGOs, trusts, and societies are significantly different from corporate companies. Unlike corporates, these entities are not governed by strict statutory requirements like the Companies Act, 2013. However, they still need transparent, reliable, and accurate financial statements to manage their operations, meet compliance for taxation, and maintain accountability with stakeholders.

With the release of TallyPrime 6.2, businesses now get enhanced capabilities to prepare customized financial statements for Non-Corporate Entities. These reports are designed keeping in mind the Revised Schedule III guidelines, ICAI recommendations, and practical requirements of smaller organizations.

This article will explain how TallyPrime 6.2 empowers NC entities with effortless financial reporting and why it’s the most trusted software for this purpose.

What Are Non-Corporate Entities?

Before diving into features, let’s clarify what NC entities mean in accounting parlance:

• Proprietorships – Small business owned and managed by an individual.
• Partnership Firms – Business run by two or more partners under the Partnership Act.
• LLPs – Hybrid entities with partnership and limited liability structure.
• Trusts and Societies – NGOs, charitable institutions, cooperative bodies.
• Professionals – CA firms, doctors, consultants who require simplified accounts.

These entities don’t prepare their books exactly like corporate entities. They need flexible reporting tailored to their ownership and regulatory requirements.

Challenges Faced by NC Entities in Financial Reporting

1. Lack of standardization – Each NC entity may follow its own reporting structure.
2. Time-consuming manual work – Preparing Balance Sheet, P&L, Receipts & Payments manually is prone to errors.
3. Tax compliance pressure – Entities need quick access to GST returns, Income Tax reports, and audit-ready data.
4. Limited accounting knowledge – Many small businesses cannot afford professional accountants.
5. Stakeholder demands – Banks, auditors, and donors often ask for transparent financial statements.

TallyPrime 6.2 addresses all these challenges by automating financial statement preparation.

TallyPrime 6.2: Financial Statements for NC Entities

1. Customizable Balance Sheet

• Automatically prepares a Balance Sheet for proprietorships, partnerships, or trusts.
• Allows grouping and sub-grouping of assets/liabilities as per business need.
• Easy adjustments for capital accounts, partner drawings, and reserves.
• Comparative view with previous year balances.

2. Profit & Loss Account (Income & Expenditure)

• Designed to reflect earnings and expenses of NC entities.
• Can be presented in traditional format (trading + P&L) or income & expenditure format for NGOs.
• Allows adjustment of partner salaries, commissions, and special appropriations.

3. Receipts and Payments Account

• Especially useful for NGOs, societies, and trusts.
• Shows all cash and bank transactions, regardless of whether they are revenue or capital.
• Auto-generated from vouchers with no manual classification required.

4. Fund-Based Reporting

• For NGOs and charitable institutions, TallyPrime enables fund-based accounting.
• Separate reports for each fund or project can be generated.
• Donor-wise income and utilization reports help in transparency.

5. Capital & Partner Accounts

• Detailed partner capital accounts with opening balance, contributions, drawings, share of profit/loss.
• Proprietorship accounts clearly show owner’s capital movement.
• Helps in audits and bank loan applications.

6. Cash Flow & Funds Flow Statements

• Cash flow report to analyze liquidity.
• Funds flow for long-term financial planning.
• Helps small businesses plan working capital effectively.

7. Tax & Compliance Reports

• GST returns auto-prepared.
• TDS, TCS, and Income Tax reports ready for NC entities.
• Ensures compliance without complex calculations.

8. Audit & Verification Tools

• Edit Log (Audit Trail) ensures no transaction is manipulated without a record.
• Simplifies statutory and internal audits for NC entities.

Benefits of Using TallyPrime 6.2 for NC Entities

1. Simplified Compliance – Whether for GST, Income Tax, or audit, reports are available in just a few clicks.
2. Accuracy & Reliability – Automated preparation reduces human errors.
3. Flexibility – Reports can be customized as per entity structure (NGO, partnership, sole trader).
4. Transparency – Donors, partners, and banks get professional-grade reports.
5. Saves Time – Reports that usually take days manually are ready in minutes.
6. Decision Making – Owners get insights into profitability, liquidity, and financial health.

How to Generate Financial Statements in TallyPrime 6.2

1. Create Company in TallyPrime – Select NC entity type and set accounting year.
2. Record Transactions – Enter sales, purchases, receipts, payments, journal vouchers.
3. Tag Entity Details – For partnerships/NGOs, set up capital accounts, donor accounts.
4. Auto-Generate Reports –
   • Balance Sheet → Gateway of Tally → Display → Balance Sheet.
   • P&L → Gateway of Tally → Display → Profit & Loss A/c.
   • Receipts & Payments → Gateway of Tally → Display → Receipts & Payments.
5. Customize Layout – Add schedules, groupings, and notes as required.
6. Export / Print – Reports can be printed in standard format or exported to PDF/Excel for sharing.

Best Practices for NC Entities Using TallyPrime 6.2

• Update partner/proprietor details at the beginning of the year.
• Regularly reconcile bank statements.
• Use cost centres for projects/funds in NGOs.
• Enable security controls to protect data.
• Lock completed periods to prevent unauthorized edits.

Conclusion

Non-Corporate entities form the backbone of India’s business ecosystem. From small traders and professionals to NGOs and societies, these organizations need clear, accurate, and compliant financial statements to operate smoothly.

With TallyPrime 6.2, preparing Balance Sheets, Profit & Loss Accounts, Receipts & Payments, and Fund-based reports has become effortless and automated. The software caters to the specific needs of NC entities, ensuring that compliance is never a burden and decision-making becomes faster.

For proprietors, partnerships, NGOs, and small firms, TallyPrime 6.2 is not just an accounting tool—it’s a complete business management and compliance partner