Since timely financial reporting is key to a company’s success, it is essential to continue efficient data extraction and analyses despite any new legal requirements or business restructuring. To recognize how these transitions may not be seamless, look back to how you initially set up your system. Your team may have had the best intentions when building the chart of accounts and reporting dimensions—and it likely made it easy to pull this data into your reports—given your needs at that time.
However, any time a process is altered, it becomes more time consuming to write useful reports based on a chart of accounts or previously defined reporting dimensions. (And let’s face it. Time isn’t a commodity we all have the luxury of sparing.) To help you stay efficient and keep your reporting relevant, with the flexibility to let you quickly respond to changes, Intacct offers solutions using the concepts of “groups.”
How Do Account Groups Work?
The Account Groups feature in Intacct’s General Ledger module allows users to create an unlimited number of “groups” and assign GL accounts to one or more of these categories. You may either select them individually or in a range.
For example, a GL account can be a part of more than one group, such as these:
Current Assets, Structure type: accounts; Range: 1000-1499
Fixed Assets, Structure type: accounts; Range: 1200-1299
Since Account Groups can also be assigned to more than one group, here’s another example:
Total Gross Profit can include both a Revenue account group and a Cost of Goods Sold account group.
Reporting: When you write your financial reports, you have the option to select particular account groups as rows. You can also choose whether to report at the summary or detail level. Note that if you create groups with the option “using ranges of accounts where applicable,” when you later add a new account to your chart of accounts, it will automatically be added to your reports and you no longer have to edit all of your financial reports to include it.
You may still have to edit an account group, however, if you are not using ranges, or when you wish to include an account with a number that falls outside of the given range. However, that would have a minimal impact on your reports.
Those of us whose responsibilities include creating such reports all know that there are times we have been in the middle of the process and realize we don’t have a needed set-up. In this case, Intacct prevails by allowing you to create Account Groups directly from within the report writer, so if you need data that isn’t there, you no longer have to stop writing the report, do additional set-up at another location in the system, then return to finish it.
Intacct also allows grouping with the dimensions. An example of one use of this feature is to create groupings on the Location dimension to establish a reporting hierarchy. As with GL accounts, the dimensional value can be included in more than one group. This lets you assign various groupings as appropriate for your evolving reporting needs.
You may modify or create groups to reflect any new reporting requirements—and you can report on them all. No more wondering what a report looked like prior to that change in structure. Create a new account group and run the reports both ways to see the results.
Sure, similar concepts may be found in other financial systems and reporting systems, but none give you the depth of use, flexibility, and ease of use that you will find in Intacct. Please contact MicroAccounting to find out how Intacct can help your company’s efficiency.