Most solutions in the Small and Medium Business (SMB) space are tailored towards nominal accounting. Their focus is position and performance reporting. For instance, SAP Business One, in addition to these attributes, also provides analytical reporting functionalities, hence the choice for most businesses transitioning from basic financial reporting.

Analytical accounting and Nominal accounting are two different approaches used in accounting to classify and record financial transactions. Here’s a brief overview of each:

Analytical Accounting 

1. Focuses on cost accounting: Analytical accounting is concerned with the detailed analysis of costs, revenues, and profits. It helps in identifying the profitability of different products, departments, or segments of the business.

2. Uses subsidiary ledgers: Analytical accounting uses subsidiary ledgers, such as cost ledgers, revenue ledgers, and profit ledgers, to record and analyze financial transactions.

3. Provides detailed insights: Analytical accounting provides detailed insights into the financial performance of different aspects of the business, enabling management to make informed decisions.

Nominal Accounting 

1. Focuses on financial accounting: Nominal accounting is concerned with the preparation of financial statements, such as the balance sheet and income statement.

2. Uses general ledger: Nominal accounting uses a general ledger to record financial transactions, which are then classified into different accounts, such as assets, liabilities, revenues, and expenses.

3. Provides overview of financial position: Nominal accounting provides an overview of the financial position and performance of the business as a whole.

Differences 

The key differences between analytical accounting and nominal accounting are:  

Purpose: Analytical accounting is used for cost accounting and decision-making, while nominal accounting is used for financial accounting and reporting.

Scope: Analytical accounting focuses on specific aspects of the business, while nominal accounting provides an overview of the entire business.

Level of detail: Analytical accounting provides more detailed information than nominal accounting.

In conclusion, analytical accounting is a more detailed and specialized approach that helps businesses make informed decisions, while nominal accounting provides a broader overview of the financial position and performance of the business.