Can we customize the expense categories as well as create hierarchy categories?

Hello,

Yes you can.  In your chart of accounts you can create new expense categories, sub-categories and edit or delete some of the default ones to make your chart of accounts work better for your business.

Welcome to the QuickBooks Community, @jess2.

MJA66-87 is correct. You have the option to customize and create hierarchy categories in QuickBooks Online. I'd gladly show you the step by step process.

1. Click the Gear icon.
2. Choose Chart of Accounts.
3. Locate the account to change.
4. From the Action column drop-down menu, select Edit.
5. Update the information.
6. To add the expense account as a sub-account, put a check mark on the Is Sub-account box.
7. Choose the parent account.
8. Select Save and close.

For additional reference, you can also check these articles:

• How to view or change account detail types
• How to create a new parent account or sub-account

That should be it. Drop me a comment if you have additional questions about accounts. I'd love to provide more help. Wishing you all the best!

Thanks for joining this thread, @Anonymous.

You're correct. QBSE is a cash-based system and is mainly used for tracking business income and expenses to estimate the taxes. It doesn't have Chart of Accounts, which is why we're unable to assign a specific account for your transactions, or add another account.

If you wish to customize expense categories and create hierarchies, you can switch to QuickBooks Online. A lot more of functionalities are available depending on which version you choose. You can check this link to get in-depth information: Compare QuickBooks Plans.

That should help you come up with a decision, @Anonymous. If there's anything else you need, just drop me a comment. I'm still here to offer more help.

Is it possible to do this in Quick Books Self Employed version?

Thanks for joining this conversation, @SophiaC.

Since QuickBooks Self-Employed (QBSE) doesn't have a Chart of Accounts, the ability to customize the expense categories is currently unavailable. This option is only available in QuickBooks Online (QBO).

If you want to be able to customize expense categories and create hierarchies, consider switching to our QBO version. I'll be adding these articles for more information:

• Compare QuickBooks Plans.
• Learn about detail types in chart of accounts.
• Organize your accounts into parent accounts and subaccounts.

I'll pass along your suggestion to our Product Developers. They're always looking for ideas from users on how to improve QBO. In the meantime, I recommend visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features.

Let me know if you have any other concerns or issues by leaving a comment below. I'm always happy to help. Have a great rest of the day!

This is only partly true.  There are several accounts that will magically reappear if you delete them.  You are not in full control.

That didn't explain how to delete a category either not in use or no longer in use.

There is no "Delete" but you can "make it inactive."  That is a choice is located in the drop down to the right of "View Register." or "Run Report" on the Chart of Accounts.