We are about to enter the new financial year, FY 2025-26, and as business accountants, we need to ensure that our Tally data transitions smoothly to the next financial year without any errors or issues. Generally, there are many things to consider when moving to the next financial year in Tally. Below, we have broken down all the important questions that need to be addressed while starting a new financial year in Tally:



Problem No. 1: How can we record accounting transactions for the next financial year in Tally? Tally is not allowing me to record transactions for the next financial year.

Solution: Recording accounting transactions for the next financial year is very simple. Go to the Gateway of Tally and press ALT + F2 to change the period. Here, update the period to the next financial year, i.e., April 2025 to March 2026. By changing the period, you will automatically shift to the next financial year in Tally, and you can record transactions hassle-free in the new financial year’s data.

Problem No. 2: If I change the period on the Gateway of Tally and record transactions for the next financial year, what if I need to view or record transactions for the previous financial year?

Solution: This is simple. Just change the period on the Gateway of Tally and select the financial year you need. Changing the period makes it easy to record transactions for any applicable period. If you don’t want to change the period repeatedly for each financial year, you can set the period to include two financial years, such as April 2024 to March 2026 (which includes FY 2024-25 and FY 2025-26). This way, you won’t need to change the period frequently. However, note that the period setting will only apply as long as the company data is loaded in Tally. If you close Tally or shut down the company and restart or reload it, you will need to set the period again.

Problem No. 3: Will there be any data issues by changing the period frequently?

Solution: No, there won’t be any issues. Just ensure that the period and the date of the transaction are selected correctly to include the transaction in the correct financial year.

Problem No. 4: Do we need to split the company data for the next financial year?

Solution: No, splitting data is not advisable for the change of the financial year. When a financial year ends, it doesn’t mean that accounting transactions for the previous period are complete. Splitting the data for two periods may lead to discrepancies in opening and closing balances in both datasets. Generally, data should only be split once the audit is completed and the balances are finalized correctly in Tally for the previous financial year. Only then should you proceed with data splitting, if required.

Problem No. 5: How do we change the voucher numbering for the next financial year?

Solution: If you are using the manual method of numbering, no changes are needed in Tally, as you will continue entering voucher numbers manually. However, if you are using automatic or auto-manual voucher numbering, you need to ensure that the suffix or prefix details of the voucher are updated for the next financial year. For example, if your sales invoice number for FY 2024-25 is set up as “ABC/001/202425,” change it to “ABC/001/202526.” To update these prefix and suffix details, follow the below path:
Gateway of Tally >> Alter >> Voucher Type >> Select Voucher >> Go to Set Additional Numbering Details >> Update prefix and suffix details effective from 1st April.
(Do not override existing details; simply add new details applicable from the date at the bottom of the existing date.)

Problem No. 6: Can we change the method of voucher numbering for a voucher from the next financial year? For example, if a voucher numbering is set as automatic but I want to change it to manual for the new financial year.

Solution: No, do not change the voucher numbering method for any existing voucher. While Tally will allow you to change the method, doing so may alter or remove the voucher series numbering for previous transactions recorded to date. If you wish to change the numbering method at any cost, create a new voucher type instead, with the new numbering method.

I hope the above explanations help ensure a smooth transition to the next financial year without any headaches. Feel free to reach out to me at 9699333653 or reliable011990@gmail.com.


Thankyou!! :-)