Learn how to create subaccounts to keep your chart of accounts organized.
In QuickBooks Online, you can create subaccounts to break down your expenses, income, and other account types into more detail. For example, you can divide your utilities account into subaccounts so you can track different types of utility payments like gasoline, telephone, water, and so on.
When you create subaccounts under a parent account, you can use them to keep your chart of accounts organized and create reports with greater detail.
If needed, you can create a new parent account, before creating a subaccount.
Create a new subaccount
Here's how to get started:
- Go to Settings ⚙ and select Chart of accounts.
- Select New. Depending on your account view, you’ll either see a panel labeled New account or New category. Select the option you see below for next steps.
Create a subaccount in the New account panel
- Select the Save account under ▼ dropdown to choose an account type. To narrow the scope of account types, you can select one of the account type buttons above the dropdown.
Note: Subaccounts appear indented in this dropdown menu, while parent accounts are not. Be sure to choose one of the indented, or nested, options to create a subaccount. - In the Tax form section ▼ dropdown, select the detail type that best fits the transactions you want to track. Learn more about detail types.
- Enter a name in the Account name field. Tip: Use the detail type description to create a name that describes what you're tracking.
- Optionally, enter a description in the Description field.
- If you choose a Bank, Asset, Credit card, Liabilities, or Equity account, make sure your account in QuickBooks matches your actual bank or credit card account. In the Starting date and opening balance section, use the dropdown to choose a date to start tracking this account in QuickBooks.
- Enter an opening balance in the Account balance field.
- When you're done, select Save.
Create a subaccount in the New category panel
- In the Category name field, enter a name for the category (subaccount).
- Select the Select category link. This is where you will choose the parent account that this category (subaccount) belongs to.
- Select the type of account that you’re creating the subaccount under. For example, if it’s money that your business earns, select Income, or if it’s a bank account, select Bank & credit cards.
- Select Next.
- Select the account that the new subaccount fits under. Your options will vary depending on what you selected in step 5.
- If you selected Bank & credit cards, select the ▼ dropdown in the Account type field and select the account type. Then enter the date you want to start tracking the account in QuickBooks and enter the opening balance as of that date.
- If you selected any other category, you’ll see several options for adding more detail about the type of account. If you see an arrow > next to a category, select it to see even more detailed categories.
- Select Save to save a bank or credit card account, or Select for all other account types.
Change an existing account into a subaccount
In some QuickBooks accounts, you can turn an existing account into a subaccount. Before you continue, make sure you’re in Accountant view.
- Go to Settings ⚙ and select Chart of accounts.
- Find the account you want to edit. Then, in the Action column, select Edit from the dropdown ▼.
- In the Edit account window, select the Save account under dropdown ▼ and choose the parent account you want to move the account under. Parent accounts are left-aligned in this dropdown menu, while subaccounts are indented, or nested, below parent accounts.
- When you're done, select Save.
Learn more about organizing your accounts
Here are other things you can do to keep your chart of accounts in order:
