What are departments?

Departments are labels used to organize financial activity by team, function, or area of responsibility within a business. By assigning transactions to departments, businesses can analyze revenue, expenses, and profitability across different parts of the organization without creating additional accounts in the chart of accounts.

Example: A company assigns transactions to Sales, Marketing, and Operations departments to compare spending and performance across teams.

Related terms: Dimensional Accounting, Locations, Category Manager, Custom Reports