Analytical accounting: what is it and what does it add?

Analytical accounting is an extracomptable refinement in the accounting of costs and/or revenues. It is extracomptable, i.e., outside the accounting system (the accounting program), because analytical disaggregation does not affect the accuracy and completeness of accounting.

It provides more detailed, analytical information about the content of the entries by project and in general. It thus adds information to the entries in terms of projects, cost centers and cost types. This information is automatically tracked and recorded in LiemarX ERP.

Often a finance clerk does not have a complete picture of the transaction at the time he needs to make an entry. For example, if he receives a purchase invoice from a supplier, he may not know the exact origin of that invoice. Should the invoice be allocated to a project? Or does it belong to general expenses? Who should approve this invoice? Figuring this out and processing it usually leads to too much (manual) work, which can cause delays in processing. This is not desirable and costs a lot of extra time.

By working with an analytical form of recording, you can link costs and revenues to a unit, department, project or business unit. This creates a much clearer overview of the various cost items that exist within a company and allows those costs and revenues to be looked at more effectively.

Monitoring costs is therefore much more efficient and gives you much more control over them. Consider the total cost of a project versus revenue, or the cost of a department versus an established budget.

Fortunately, the LiemarX procurement module takes this work off your hands. This happens immediately when the invoice enters the scan & recognize software of the Invoice2Liemar module. Important additional information such as projects, departments, cost types and cost centers are automatically assigned and thus automatically arrive in the right place.

Now all this information is automatically ingrained in LiemarX ERP according to three plans. Plan 1 is by project, Plan 2 is by department and Plan 3 is by project category (a type of project/yard). Cost types and locations are freely configurable.

The great thing is that within a project you can also find Plan 2. Thereby, within Plan 2 you have per project a perfect analytical breakdown per department, cost center and/or cost type and/or supplier and/or employee and/or date. These can be found and analyzed through pivot tables in the project and BI module of LiemarX.

Also, in LiemarX an analytical consideration is possible at general cost level with budget and its coverage per fiscal year, per fiscal entity, by general ledger account, by cost type and cost center and by variable reporting (self-defined aggregations). This eliminates the need for analytical setup and consideration in the accounting program.

Would you like to know more about the possibilities of LiemarX? Then make an appointment with no obligation. We would love to hear from you! Call us at +31 (0) 40 24 84 041 to discuss your organization. You can also visit our website for more information: www.liemar.nl.