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Moving to the Next Financial Year in TallyPrime

Updated: Mar 30, 2023

Easily and quickly close the books of accounts of a financial year, and move your company data to the next financial year. You can achieve this in multiple ways in TallyPrime. Handling your tax liability or input credit when company data is split at the beginning of the new financial year is also simplified in TallyPrime.

Click on the link to watch the video:

A. Change Current Period

To move your data to the new financial year, change the current period to:

  • Continue the voucher entry in the same company data.

  • Carry forward all ledger balances without creating a new company.

  • Compare the reports from different financial years.

To change the current period

Go to Gateway of Tally > click Alt+Y: Data > Split Data and enter the dates.

Note: When the Current Period is changed, the balances from the previous financial year are carried forward.

B. Other Methods of Moving to New Financial Year

  1. Split Company Data

  2. Create New Company and Import Opening Balances

  3. Create New Books of Accounts

1. Split Company Data

Advantages of Splitting of data

  • Reduce data size. Multiple-year tally data will tend to make tally work slow. Splitting of data will reduce data size and increase the speed.

  • Secure old data and start work in a different folder. Splitting of data will ensure the security of data of the previous year.

  • Maintain separate folders for each financial year.

  • After Splitting, new number series for tax invoices can be started. If anyone wants to change the number series for billing in the New Year, then he can do that from 1st April. The new number series should be started from 1st April.

  • Unwanted or not used Accounting Masters & Inventory Masters can be deleted in the new split company.

  • Security setup will be automatically carried forward in the new split company.

Disadvantages of Splitting of data

  • After Splitting, two companies with different financial years are created. If auditing work is done in the first company, changes need to be done in the split company as well.

  • Any changes are done in the previous company then the opening balance needs to be entered manually.

Note: If data is of high volume and if there is any error in the data, the splitting process will take time.

Prerequisites for splitting company data

Before splitting the data, the user must ensure that:

  • A backup of the data.

  • All unadjusted forex gains/losses have been fully adjusted by recording journal entries.

  • No purchase/sales bills are due. Check the Profit & Loss A/c and inventory statements (purchase/sales bills pending). You have to account them in the respective party accounts or in the bills pending account.

  • The company data is verified to ensure that no errors occur during splitting using the Verify Company Data option.

Verify Company Data

You may want to split the company data at the end of the current financial year or at the beginning of the next financial year when the data size becomes huge. While splitting the data based on financial years, Verify Company Data automatically detects possible errors in the data. You can manually correct them and then split the data.

Verify Company Data detects the following possible errors:

  • Voucher has bank allocation details in non-banking ledgers

  • Non-banking ledger has bank reconciliation details

  • The voucher has duplicate bank allocation details

  • An incorrect ledger was selected in Bank allocation

  • Incorrect Units of measurements for an Item

  • Cost Centre does not belong to the Category

  • No Accounting Allocations

  • Voucher Totals do not match

  • Cost Break-up total does not match

  • The service tax (ST) category does not exist

  • No entries in the voucher

Important points to remember

  • The Split from date is based on the existing data and is considered as the beginning of the current financial year.

  • Once the company data is split, two separate companies will be created and opened, without any changes to the original data.

  • After the split, all the three companies act as separate companies. You can make entries, display reports, and alter any data in these companies.

  • If required, you can alter the names of the companies that are created as a result of splitting.

The Issue faced and solution after splitting data

Issue 1: If Bank Reconcile Doesn't match after splitting data.

Solution: We can add opening manually in Bank Reconciliation.

Issue 2: If outstanding doesn't matches with group and bill reference wise.

Solution: After splitting alter the ledgers and adjust the opening balances bill-wise.

Note: You can purchase our add-on report to see which ledgers are mismatched.

Issue 3: If your stock is not maintained physically or if you have not started maintaining stock in tally from the previous financial year.

Solution: You can maintain physical stock in the tally after splitting data by manually adding opening balances.

Issue 4: The job work orders, sale order's and purchase orders are that are created before & as of 31st March from date will not track into the current financial year of the company.

Solution: We have to create new purchase order, sales order, job work order only for pending quantity on 1st April with different voucher types.

Note: You can purchase our excel integration add-on to import all masters, vouchers, and orders. For more details click here.

Note: As TDS Ledgers do not have bill-wise reference allocations, it is not possible to track TDS purchase or JV entries into payment entries after the company is split.

How to maintain Voucher Numbering after Splitting Data & Creating New Financial Year?

The Methods of Numbering list appears as shown below:

  • Automatic

  • Automatic (Manual Override)

  • Manual

  • Multi-user Auto

  • None

You can select the required method of voucher numbering from the voucher type creation/alteration screen based on the below explanation.


  • Invoice numbering goes series-wise thus making it easy to track & maintain.

  • If we do backdated entry, series of invoice numbering changes.

Automatic (Manual Override)

  • Voucher number goes series-wise automatically & it also provides users to enter voucher numbers manually.

  • If we do backdated entry, series of voucher numbering changes, but we can rectify it manually.

  • The voucher number is not sorted series-wise.


  • Users can put voucher numbers according to their choice or preference.

  • The series of voucher numbering is not displayed automatically. The user has to put the Voucher number manually & this increases chance of error.

Multi-user Auto

  • The number which the first user saves is carried forward to other users.

  • If two user makes voucher entry simultaneously then the user who saves 1st voucher will get the voucher number & the next voucher number is assigned to other users.


  • Select None to disable voucher numbering.


We suggest using Automatic (Manual Override)

Refer to the Tally help file for more details and types of errors.

2. Create New Company and Import the Opening Balances

If you have created a new company, export the closing balances of the ledgers and stock items of the old company, and import them as opening balances into the new company. You can also import the audited closing balance of the previous year, as the opening balance into the current year.

3. Create New Books of Accounts

You can create a new company and start recording the transactions without any opening balances for the ledgers.

Tally Help Articles:

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Apr 17

Great article on transitioning to the new financial year in TallyPrime! The explanation of "Change Data" for carrying forward balances is helpful. For users who might need extra guidance or have complex setups, Software@Work, a trusted accounting software solutions provider, can be a valuable resource. They can help ensure a smooth transition to the new year in Tally.


S20 classes
S20 classes
Sep 14, 2020

Awesome stuff as always! Thanks for putting this together!

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