"Is the company making or losing money?", this is most likely one of the most important question a business owner might ask. At the end of the day, there are only 2 ways of generating more profit: increase sales or decrease costs. But in order to do this, you need to be able to know where the revenues and expenditures are coming from. Analytical accounting dimensions helps you achieve this by giving you the financial view you need.
Analytical accounts or analytical tags are additional data that allows you to report on and analyse your financial data in a more granular way and hence take more accurate business decisions. Analytical dimensions allow you to split and see your financial reports in more details without having to create more accounts in your chart of accounts.
Generally, your traditional profit and loss report as a "flat and static" file which is a list of all the accounts and their respective balances.
Analytical dimensions give you the ability of splitting these accounts in more details and in different ways - by department, by project, by product group, by state and more. You can think of it like a financial cube, where you can look at the same data in different views and report on the analytical dimension individually without having to clutter your chart of accounts.
Analytical tags in Odoo can be defined in almost all areas of your business whether it is from a sales order, an invoice, a purchase order, a bill or an expense claim from an employee. You can define the dimensions at every stage in order to split your income or expenses accordingly in your financial statements.
Accounting dimensions are ideal for any company size, whether you are a start up or an enterprise organisation. You always have different views of your data you wish to analyse in order to take the right business decision. Having dimensions removes the pain of managing a dense chart of accounts, hence making it easier for accountants to manage your financials and at the same time giving you more dynamic and granular reports.
Contact us today on firstname.lastname@example.org to learn more about analytical dimensions and see how it can help your business.
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