What accounts hold formulas that are used to calculate financial metrics?

Metric Accounts hold formulas that are utilized to calculate financial metrics. These accounts are specifically designed to perform calculations based on the data provided in other accounts. By storing these formulas, Metric Accounts facilitate the computation of essential financial metrics like revenue growth, profit margins, and various other key performance indicators that organizations track over time.

These accounts are pivotal for generating insights and analytics. They enable users to access real-time data derived from underlying account data, thus accurately reflecting the organization’s financial performance. Having dedicated accounts for metric calculations helps maintain clarity, enabling users to reference financial indicators without confusion regarding the source of the data or the formulas applied.

The other options pertain to different concepts within the financial planning framework. Best Practices Accounts refer to predefined account structures that promote efficient modeling, Default Formulas are standard expressions that may apply across various accounts but do not specifically focus on metrics, and System Accounts typically refer to accounts that have technical functions rather than being geared toward the calculation of financial metrics.