Power of Audit Trail in TallyPrime
24 June 2024

Maintaining accurate financial records is critical for every company. More than ever before in this digital era, it is critical to keep transparent and auditable records of all financial dealings. The Audit Trail feature in TallyPrime is useful in this situation.

What is an audit trail?

A record of each modification made to your financial data in TallyPrime is kept in chronological order via an audit trail, which is also called an edit log. All aspects of transactions and masters, including vouchers, ledger accounts and stock items, are encompassed in this. It records information such as:

  • The modified items are: particulars about the adjustment performed.
  • At the time of the change, the exact moment it was made.
  • Someone changed it. login credentials of the person making the change.

Why is an audit trail important?

You should use TallyPrime's Audit Trail capability for a number of important reasons:

  • Improved Safety and Accuracy of Data: Because the audit trail records every modification, it is nearly impossible to alter financial data covertly. As a result, internal controls are strengthened, and the likelihood of illegal changes is reduced.
  • You can find any mistakes or discrepancies made when data is entered or changed by looking at the audit trail, which improves accuracy. Your financial records will remain accurate with this.
  • A more efficient audit process is possible since the auditor has the audit trail at their fingertips to follow transactions and comprehend the reasoning behind particular changes. This makes the auditing process faster and easier.
  • Maintaining an audit trail is necessary for certain businesses in some countries, like India, under the Ministry of Corporate Affairs (MCA). This is to ensure regulatory compliance. The Edit Log function in TallyPrime guarantees adherence to these rules.

Also Read : How Are Accrued Revenues Recorded as Liabilities?

The good news is that you don’t need any complex configuration to enable the Edit Log in TallyPrime. There are two options, depending on your needs:

  • TallyPrime Edit Log Release 2.1: The Edit Log functionality is by default enabled in this version. It’s ideal for businesses that require mandatory audit trails or want continuous logging for better internal control.
  • Standard TallyPrime: If you only need the Edit Log occasionally, you can access it through the standard TallyPrime features.

Here’s how to access the edit log in both scenarios:

For TallyPrime Edit Log Release 2.1:

  • Gain access to your company's data by downloading and installing TallyPrime Edit Log Release 2.1.
  • At the first sign of a change, the edit log will begin recording it.

For Standard TallyPrime:

  • Access Tally's main menu by pressing Alt+K (Company) > Alter.
  • To activate TallyAudit, go to the Company Alteration screen and check the box next to it.

Viewing the Edit Log:

Once enabled, you can access the Edit Log through the following steps:

  • Go to the Tally Gateway.
  • Hit the shortcut key combination Alt+G to go to.
  • Select "Debunk" and hit the Enter key.
  • Press Ctrl+B to bring up the reports.
  • If necessary, choose Edit Log or a related report.

All changes, organized by vouchers and masters, are reported in the Edit Log report. To narrow your study, you can utilize the report's filtering options to specify a certain time range, user, and change type.

Benefits Beyond Compliance

While regulatory compliance is a significant advantage, the Edit Log offers valuable benefits beyond that:

  • Identifying user activity: Track user actions and identify any unusual patterns or potential misuse of the system.
  • Reconciliation Support: Simplify reconciliation tasks by tracing changes made to specific accounts or transactions.
  • Improved Decision Making: Analyze historical changes to understand trends and make data-driven financial decisions.

In Conclusion

Data integrity, audit efficiency, and overall financial management can all be greatly improved with TallyPrime's Edit Log capability. Using this function, companies may make sure their financial records are accurate and trustworthy, which promotes openness and honesty.