Adding Subaccounts

You can break expenses down into smaller categories by adding Subaccounts to a Parent Account. After you set up your Chart of Accounts under Settings/Accounting/Chart of Accounts or Accounting/Settings/Chart of Accounts (depending on your permissions). 

Accounts can go three levels deep:

Example: The image on the left shows you an account's hierarchy and the image on the right shows the related fields when editing or adding a new account. 

A. Level 1 (the main parent account that level 2 and 3 subaccounts fall under) = 5000 COGS
  

B. Level 2 (subaccount of the level 1 account) = 5100 Printing COGS   

C. Level 3 (subaccount of the level 2 account) = 5110 Paper, 5120 Ink, and 5130 Lamination

        Account Hierarchy in Chart of Account                                          Hierarchy Shown on an Individual Account     

Depending on what kind of Subaccount you want to create, you can either add a new account and choose a Parent Account for it to fall under or you can follow the steps below:  

1. Select the account you want as your Parent Account from your Chart of Accounts lists.  

 
Note: You can only add a parent if the account you're viewing is not a level 3 account. 

2. Click on the More Actions ellipsis and select Add Subaccount.

3. Enter an Account Name that will help you identify this Subaccount.    4. Enter an Account Number that relates to the Parent Account.  Example: 5110 Paper, 5120 Ink, or 5130 Lamination.  Note: Account Numbers are required if you’re using non-QuickBooks accounting integration software, to help ensure accounts match between applications.    5. Except for Assets, the Account Types are System Defaults that cannot be changed and will match the tab you’re creating the account under.   Example: Current Liability account type for Liabilities accounts.  6. Review the Parent Account and select a different one if needed. Note: You will only see parent accounts with the same account type you’ve selected.  Also, if you have a parent account that has two subaccount levels below it, it cannot be made a subaccount of another parent account and the dropdown will be blank.    7. Click Save when you're done.

Additional Information 

1. Accounts Receivables cannot be a parent account because you cannot create new AR accounts.

2. Under the Liabilities tab, there are two kinds of accounts: Sales Tax Liability or Current Liability. You can only create a current liability type of account. 

3. The Income, COGS, and Expenses tabs only have Income, COGS, and Expense account types.