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shadow accounting

Shadow Accounting

What is shadow accounting?

Broadly speaking, the term shadow accounting refers to the practice of maintaining financial records and calculations in a separate system that lives outside any official sources of truth. Shadow accounting often happens at the team or department level and can happen in conjunction with official record-keeping or workflows.

In sales specifically, shadow accounting often refers to the practice of individual reps keeping track of their own deals and commissions for the sake of ensuring an accurate paycheck down the line.