Step-by-Step: Using Tally Prime for Financial Reports and Cash Flow

Published on: 18-11-2025 Call CA Tally HelpDesk +91 9205471661, 8368262875

Financial management is the backbone of every business—big or small. Whether it’s tracking income, controlling expenses, or forecasting cash availability, businesses rely heavily on accurate financial reports. Tally Prime simplifies this entire process by offering intuitive, detailed, and real-time financial statements that help business owners and accountants make smarter decisions.

If you want to understand exactly how to use Tally Prime step-by-step for generating financial reports and managing cash flow, this guide breaks everything down clearly.

1. Understanding Financial Reporting in Tally Prime

Tally Prime includes a robust collection of reports that cover almost every financial requirement, such as:

• Balance Sheet
• Profit & Loss Account
• Cash Flow & Funds Flow
• Ratio Analysis
• Trial Balance
• Ledger summaries
• Outstanding Receivables & Payables

These reports are updated instantly as soon as any transaction is recorded, making Tally Prime a reliable real-time reporting tool.

2. Step-by-Step: Generating a Balance Sheet

Step 1: Go to Gateway of Tally → Balance Sheet

The Balance Sheet shows the financial position of your business, including assets, liabilities, and capital.

Step 2: Use Period Filters

Press F2 (Period) and select the time frame you want—monthly, quarterly, yearly, or custom dates.

Step 3: Drill Down for Details

Click any group (e.g., Current Assets or Loans) to open deeper levels. Tally Prime allows report expansion down to the last voucher.

Step 4: Export or Print

Press Ctrl + E to export or Ctrl + P to print.
You can export to Excel, PDF, or send directly via email.

3. Step-by-Step: Profit & Loss Report

The Profit & Loss account helps evaluate profitability for any selected period.

Step 1: Gateway of Tally → Profit & Loss A/c

Step 2: Press F1 (Detailed) to view deeper breakdowns.

Step 3: Press F2 to change the report period.

Step 4: Use F5 to toggle vertical/horizontal P&L presentation.

Tally instantly updates expenses, incomes, and gross/net profit trends.

4. Step-by-Step: Cash Flow and Funds Flow Analysis

Cash flow is crucial for daily business operations. Tally Prime provides both Cash Flow and Funds Flow with clear inflow and outflow details.

Cash Flow Statement

Step 1: Gateway of Tally → Display More Reports

Step 2: Select Cash Flow

It shows:

• Cash inflows (sales receipts, capital receipts)
• Cash outflows (payments, expenses, purchases)

Step 3: Press F5 for “Month-wise Cash Flow” view

This helps track seasonal patterns and identify peak inflow/outflow periods.

Step 4: Use Alt + F5 for a graphical view

The graph visually displays cash movement trends for easier interpretation.

Funds Flow Statement

Useful for long-term financial planning, it shows:

• Sources of funds (loans, equity, retained earnings)
• Application of funds (fixed assets, long-term investment)

Access via:
Gateway of Tally → Display More Reports → Funds Flow

5. Step-by-Step: Outstanding Receivables & Payables

Managing cash flow also requires tight control on outstanding amounts.

Step 1: Gateway of Tally → Display More Reports

Step 2: Select Outstandings

You’ll see:

• Bills receivable
• Bills payable
• Overdue invoices

This helps follow up with customers and negotiate better credit terms with suppliers.

6. Step-by-Step: Ratio Analysis for Decision Making

The Ratio Analysis report helps evaluate:

• Liquidity
• Profitability
• Solvency
• Efficiency

Step 1: Gateway of Tally → Ratio Analysis

Metrics include:

• Current ratio
• Quick ratio
• Inventory turnover
• Gross & net margin
• Return on investment

This helps business owners assess financial health quickly.

7. Step-by-Step: Exporting Financial Reports

To Export:

Ctrl + E → Choose format (Excel, PDF, JPEG, HTML).

To Email Directly:

Alt + M → Enter email details.

To Print:

Ctrl + P → Choose printer layout.

Tally Prime ensures flexible and professional reporting options suitable for audits, banks, and management review.

Final Thoughts

Tally Prime offers a powerful, easy-to-use system for generating reliable financial reports and analyzing cash flow in real time. With instant drill-down capabilities, intuitive navigation, and automation-driven accuracy, businesses can track their financial health seamlessly and make informed decisions anytime.

Whether you are a business owner, accountant, or finance manager, Tally Prime turns complex financial reporting into a clean, step-by-step experience.

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