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Analytic Accounting Overview
Setting Up Plans & Accounts
Tagging Transactions
Reporting & Analysis

Introduction to Analytic Accounting

A Second Way to Slice Every Transaction

Your Chart of Accounts answers what kind of transaction something is (Travel Expense, Product Revenue). Analytic Accounting answers a completely independent question — which part of the business it belongs to (which department, which project, which cost center, which product line) — without needing a separate GL account for every single department or project.

Core Concepts

ConceptDescription
Analytic PlanA "dimension" of analysis — e.g. "Departments," "Projects," "Product Lines." You can have several plans active at once, each independent of the others.
Analytic AccountOne specific value within a plan — e.g. "Marketing" and "Engineering" are both analytic accounts under the "Departments" plan.
Analytic DistributionThe actual tagging on a transaction line — which analytic account(s) it's assigned to, optionally split by percentage across several.
Analytic LineA recorded entry against an analytic account — timesheets, expenses, and invoice/bill lines all generate these behind the scenes.

Where You've Already Seen This

Every course that mentions "analytic account" — Projects (cost tracking), Timesheets (billable hours), Budgets (department/project budgets), Purchases and Expenses (cost allocation) — is using this same underlying system. This course covers the setup and reporting side directly.

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