If you’re managing your accounts with Tally Prime and wondering how to enable audit trail in Tally Prime, you’re not alone. With increased regulatory requirements and the need for greater transparency in accounting, enabling the audit trail has become essential for businesses across India.In this guide, we’ll walk you through everything you need to know about enabling the audit trail in Tally Prime—why it’s important, how to do it, and what benefits it offers. We’ll also include location-based terms, keyword variations, and helpful links to make this a comprehensive resource.
What is Audit Trail in Tally Prime?
The Audit Trail is a chronological record that logs every activity in your accounting data, such as creation, deletion, or modification of transactions. Tally Prime’s audit trail feature helps track and document all changes, providing transparency and preventing data tampering.
Why Enabling Audit Trail is Important
With the Ministry of Corporate Affairs (MCA) mandating audit trails for certain businesses, enabling it is more than just good practice—it’s a compliance necessity.
Key reasons to enable audit trail:
- Prevents unauthorized data manipulation
- Ensures statutory compliance
- Aids internal and external audits
- Provides accountability and transparency
How to Enable Audit Trail in Tally Prime
Now let’s dive into how to enable audit trail in Tally Prime step-by-step.
Step 1: Launch Tally Prime
Open Tally Prime on your system and log in with administrative credentials.
Step 2: Go to Company Creation/Alteration
Depending on whether you’re creating a new company or editing an existing one, do the following:
- For a new company: Navigate to “Create Company”.
- For an existing company: Select “Alter” under “Company Info”.
Step 3: Enable the Audit Trail
Scroll down to the F12: Configure section and look for the “Enable Edit Log/Audit Trail” option.
Set this to “Yes” to activate the audit trail.
Steps to Enable Audit Trail in a New Company
- Go to “Create Company” under Company Info.
- Fill in all company details.
- Press F12 (Configure).
- Enable Edit Log and Use TallyVault Password for added security.
- Save the settings and start recording transactions.
Steps to Enable Audit Trail in an Existing Company
- Select “Alter” from Company Info.
- Press F12 (Configure).
- Set “Enable Edit Log” to Yes.
- Save and exit.
Once enabled, the audit trail cannot be disabled, as per MCA guidelines.
Things to Know Before Enabling Audit Trail
- You must be using Tally Prime Release 2.1 or later.
- The audit trail feature is irreversible once activated.
- It records changes to masters and transactions.
- You cannot delete this feature after enabling.
- It is mandatory for companies falling under MCA regulations from April 2023.
Tip: Always take a data backup before enabling new features in Tally.
Benefits of Audit Trail in Tally Prime
- Transparency: Shows who made changes, when, and why.
- Compliance: Meets MCA mandates and audit requirements.
- Security: Discourages fraudulent activities.
- Accountability: Encourages responsible bookkeeping.
- Accuracy: Improves the reliability of financial reports.
Common Issues and Fixes
| Issue | Fix |
| Audit Trail not visible | Check if you’re using Tally Prime 2.1+ |
| Unable to disable Audit Trail | It’s by design, per MCA rules |
| Reports showing too much data | Use filters to narrow down edit logs |
FAQs About Tally Audit Trail
Is audit trail mandatory?
Yes, for companies covered under MCA guidelines.
Can I disable audit trail after enabling it?
No. Tally Prime doesn’t allow deactivation of this feature.
Does audit trail affect performance?
Minimal impact, though large datasets may show slight delay in report generation.
How can I view audit trail reports?
Go to Display > Statements of Accounts > Edit Log.
Conclusion
Enabling audit trail in Tally Prime is no longer optional for many businesses—it’s a legal and financial necessity. By following this step-by-step guide on how to enable audit trail in Tally Prime, you’re not only staying compliant but also protecting your financial data from internal risks.
To stay ahead in your accounting journey, keep your Tally software updated and explore more advanced features like TallyVault and remote access.