How To Set Up A Sub Account In Quickbooks

Quickbooks Parent vs Sub Accounts: What's the Departure?

Quickbooks supports a multi-tiered hierarchy for creating and using accounts. You can use both parent and sub accounts, for example. By taking reward of Quickbooks multi-tiered account hierarchy, you'll be able to track your business organization's financial transactions with greater ease. And then, what's the difference between a parent and sub account?

What Is a Parent Business relationship?

A parent account is a top-level account used for accounting purposes. It's called a "parent account" because it contains one or more other, lower-level accounts. The parent account is the main business relationship nether which lower-level accounts, also known as sub accounts, are placed.

What Is a Sub Account?

A sub account, on the other paw, is a lower-level account, that's placed under an existing parent account. All sub accounts must be attached to a parent account. For example, y'all may want to place a sub business relationship for your business's electric expenses nether a parent business relationship for utilities. In addition to electric expenses, other sub accounts yous may want to place under the utilities parent account include gas and internet (if applicable).

How to Create a Sub Account

In Quickbooks Online, you can create new sub accounts in just a few easy steps. Kickoff by logging in to your account and clicking the gear icon, followed by "Nautical chart of Accounts" and and so "New." You should then meet a window asking for more data nigh the business relationship. Tick the box labeled "Is sub account" and choose the parent account nether which you'd like to place it. You lot will then need to enter a name and clarification for the sub business relationship. When finished, click "Save and Close," at which the sub account will be added to Quickbooks.

How to Catechumen an Existing Account Into a Sub Account

You can likewise convert existing accounts into sub accounts. This is done past going back to the abode screen and clicking the gear icon, followed by "Chart of Accounts." Rather than creating a new account, though, you lot should choose an existing account by clicking the down arrow. Click the account that you'd like to convert into a sub account and select "Edit." Next, tick the box for "Is sub business relationship" and choose the parent account under which you'd like to place it. You can then finalize the conversion by selecting "Save and Shut."

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