Spectrum allows you to divide your company into departments. The Department designation precedes your general ledger account number. For example, a mask such as XX-XXXX would have a 2 digit department and a 4 digit account number (this is the most common configuration). It is not necessary to enter the dash during data entry.

You can also set up multiple companies in Spectrum and perform multi-company transactions and consolidations. Generally, if each entity has a separate Federal Employer Identification Number, it should be set up as a separate company. You should define which departments you wish to use prior to entering your chart of accounts. Make sure they each have their own appropriate Income and Expense accounts in your chart of accounts.

Non-departmentalized companies set up assets, liabilities, capital, revenue, and so on based on groupings of accounts in the chart of accounts.