Departments
Departments allow you to segment your client's books to track performance across teams, service lines, or business units.
Step 1: Set up your Departments
Go to Accounting > Departments in the left-hand menu.
Click Add Department to create one manually.
(Optional) If your client is connected to QuickBooks Online (QBO), click Import Departments to bring in your existing structure.
Organize departments into a hierarchy as needed — for example: Sales > East Coast.
You won’t see the import option unless your firm is connected to QBO.
To make changes, hover over a department name to:
Click the Pencil to rename or modify the department. (Note: editing is not available for departments imported from QBO or Gusto.)
Click the Hierarchy icon to add a child department.
Step 2: Tag transactions with a Department
Once your departments are set up, you can start tagging transactions.
To tag one transaction:
Go to Accounting → Ledger.
Click into a transaction.
Click Edit at the top of the screen.
Use the Department field to assign a tag.
To tag one or more transactions at once (Bulk Tagging):
From the Ledger, click Edit at the top.
Check the boxes next to the transactions you want to tag.
Click the Department icon in the toolbar at the top.
Select the department from the dropdown.
Click Apply to save your changes.
✨ Once you've set up your Departments, Digits will auto-assign Departments to transactions based on learned patterns. Anything Digits isn't sure about is surfaced in the Inbox for review, so you stay in control.
Tip: Unsure about the right department? You can leave a comment or question on any transaction to confirm with a teammate or client.
Step 3: Report by Department
After transactions are tagged, you can view department-level reporting.
To view Profit & Loss by Department:
Go to Custom Reports > Profit & Loss.
Click the gear icon in the upper right of the report.
Toggle on Drill-down to enable department (and location) breakdown.
Under Dimensions, select Department, then choose one or more from the dropdown.
This lets you filter and break down P&L reports to compare revenue and expenses across departments.
You can also add department-specific widgets to Reports:
Go to any Custom Report (like Executive Summary).
Click Options at the top of the report.
Select the Department tab in the Add Graphs panel.
Choose from available department-based graphs — including category-level breakdowns.
Add your desired widget(s), then click Done.
To add department charts to your client's Dashboard:
Go to Home.
Click Edit in the top-right corner.
Click the Department icon in the chart selector panel.
You’ll see available charts for each department.
Drag and drop the ones you want onto your dashboard.
Click Done to save your changes.
Step 1: Set up your Departments
Go to Accounting →Departments in the left-hand menu.
Click Add Department to create one manually.
(Optional) If the account is connected to QuickBooks Online (QBO), click Import Departments to bring in your existing structure.
Organize departments into a hierarchy as needed — for example: Sales → East Coast.
You won’t see the import option unless your firm is connected to QBO.
To make changes, hover over a department name to:
Click the Pencil to rename or modify the department.
Click the Hierarchy icon to add a child department.
Step 2: Tag transactions with a Department
Once your departments are set up, you can start tagging transactions.
To tag one transaction:
Go to Accounting → Ledger.
Click into a transaction.
Click Edit at the top of the screen.
Use the Department field to assign a tag.
To tag one or more transactions at once (Bulk Tagging):
From the Ledger, click Edit at the top.
Check the boxes next to the transactions you want to tag.
Click the Department icon in the toolbar at the top.
Select the department from the dropdown.
Click Apply to save your changes.
Unsure about the right department? You can leave a comment or question on any transaction to confirm with a teammate, accountant, or client.
Step 3: Report by Department
After transactions are tagged, you can view department-level reporting.
To view Profit & Loss by Department:
Go to Custom Reports → Profit & Loss.
Click the Options at the top of the report.
In the Options panel, find Drill down by.
Open the dropdown and choose Department.
Under Multiple, select the departments you want to include—or choose all.
(Optional) Use:
Hide Other Departments to show only the departments you selected
Hide Unassigned Departments to exclude anything not tied to a department
This lets you break down your Profit & Loss by department so you can compare revenue and expenses across teams.
You can also add department-specific widgets to Reports:
Go to any Custom Report (like Executive Summary).
Click Options at the top of the report.
Select the Department tab in the Add Graphs panel.
Choose from available department-based graphs — including category-level breakdowns.
Add your desired widget(s), then click Done.
To add department charts to your Dashboard:
Go to Home.
Click Edit in the top-right corner.
Click the Department icon in the chart selector panel.
You’ll see available charts for each department.
Drag and drop the ones you want onto your dashboard.
Click Done to save your changes.
Frequently Asked Questions
Can I report by both Location and Department at the same time?
Not yet. Today, you can drill down by either Location or Department per report. Multi-dimensional P&Ls (using both) are on the roadmap.
Got a question or feedback? Our team is all ears—come say hello!
Can I import transactions with Departments and Locations?
Yes! You can import transactions with Departments and/or Locations. Here’s how it works, depending on how you import:
CSV import
If you use the Digits CSV template, include a Department and/or Location column.
If the Department/Location already exists in Digits: Digits applies it during import.
If it doesn’t exist: Digits creates a new Department or Location in your Dimensions list and tags the transaction.
If Digits can’t create or apply it: The transaction imports without a tag (and it won’t go to the Inbox). No stress — you can tag it later in the Ledger, either one at a time or in bulk.
Statement import (PDF/PNG/JPG/JPEG)
Transactions imported from a bank statement also go through Digits’ AI categorization flow.
If Digits has seen past Department/Location patterns on similar transactions, it will try to apply them during import.
If Digits can’t create or apply a dimension, the transaction imports without a tag (and it won’t go to the Inbox). You can tag it later in the Ledger — individually or with bulk edit.
Can I report by both Location and Department at the same time?
Not yet. Today, you can drill down by either Location or Department per report. Multi-dimensional P&Ls (using both) are on the roadmap.
Will departments import automatically from QuickBooks Online, or do I have to create them manually?
If your Digits account is connected to QBO, you can import Locations just like Departments. Digits can pull from QBO’s Location or Line Class fields, depending on how your file is set up. You can also choose to skip import and build your Locations structure manually in Digits.
How do I use Departments or Locations for project-based accounting?
Departments and Locations can be used like QBO Classes. Many firms rename one of the dimensions to “Projects,” then assign that dimension to transactions. The fastest workflow is to filter in the Ledger and use bulk edit to apply the dimension to multiple transactions at once.
Will Departments/Locations sync automatically from connected tools like Ramp or Gusto?
Ramp: No — Departments/Locations do not sync from Ramp into Digits automatically. Gusto: Departments do sync from Gusto (Departments only — not Locations).
Can I view Departments and Locations on Balance Sheet reports?
Not yet. Department and Location breakdowns are currently available on Profit & Loss reports only.
Got a question or feedback? Our team is all ears—come say hello!