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Project types are a setup feature that allow for more in-depth project reporting and subsequently better project management. We have several project reports that you can run by project type. You are also able to assign specific GL accounts to project types. This is important as when you use different GL's for different project types you can track them through your financial statements so you can definitively see where your profit centers truly lie.
Even if you do not choose to separate your projects by types you will need to set up at least one type to use in your projects.
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