Service Account

I have read from several sites to use "Use Another Account" rather than using the "Use Built-In Accounts". Do I create this "Use Another Account" local on the report server and have it added to AD or how would one do this?

There is also an Execution account.

It is always recommended to use separate service accounts for each service.
Your system admin will create a normal user account in the AD and then you will use the newly created account in your service account configuration window.

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Thanks Ahmed. I didn't realize that I actually asked a similar question in another post called "Best Practices Security"