How many sub accounts can the chart of accounts have?

Hello, leflersfashion.

Welcome to the Community. I'd be happy to provide some information on your question about sub-accounts.

To answer your question, each account in the Chart can have sub-accounts. Any account that you need to create a sub for can have up to four sub-accounts.

I've got an article for you that offers some pointers on using sub-accounts in QuickBooks Online. You can check it out here: https://quickbooks.intuit.com/community/Reports-and-accounting/How-to-create-a-new-parent-account-or....

I wish you continued success. Feel free to contact me if you have any other questions.

I guess I don't understand the 4 sub account concept since I've entered over ten sub accounts for a control account.  I believe you can have as many as you wish.  At least I have not experienced 'limitation'.

So does this mean each parent can have only 4 direct subs under it or I can have 4 levels like:

Parent 1

       sub 1

       sub 2

       sub 3

       sub 4

       sub 5

               subsub A

                      subsubsub (1)

                             subsubsubsub a

So is that 4 sub account levels (subs within subs) or just 4 subs (which seems very limiting

Hello, @edcaryl and @ronmitori.

You can have as many sub-accounts under a parent account in your Chart of Accounts as you need. However, there is a limit to 4 levels deep.

Example:

Parent 1

        Sub 1

        Sub 2

                Sub level 2.1

                        Sub level 2.2

                                Sub level 2.3

                                     Sub level 2.4

Here's more information on how to create subaccounts in your chart of accounts in QuickBooks Online.

Please don't hesitate to leave a comment below if you still have questions about this. We're always here to assist. 

So is that 4 sub account levels (subs within subs) or just 4 subs (which seems very limiting

Hello there, ronmitori,

You're right, it's only four sub-accounts level, sub-account within a sub-account. As for the sub-accounts under a parent account, you can create more than four. I have attached a screenshot below for reference:

Check out these articles for future reference:

• Use account numbers in your chart of accounts
• Organize accounts into parent accounts and sub accounts
• Hide accounts you no longer use

Stay in touch with me if you have additional questions.

Hi, I am new to the parent and sub-account feature.  My question is, when I am categorizing my bank feed transactions that have parent and sub accounts, should I only use the sub-accounts to categorize the transactions?  Would it be confusing for reporting purposes to have some transactions categorized directly to the parent account and the rest to different sub-accounts?

Thank you!

Hi there, Cass592b.

If the sub-account is the one that's connected to Online Banking, then you need to use it when categorizing the transactions. If you only connected the parent account, then the transactions are automatically categorized under it.

Please take note that we're unable to connect both a parent account and its subaccounts. If you try to connect both, you’ll get a message that the account is already connected. Please take a look at this article for more details: About bank or credit card subaccount setup.

If you're referring to assigning a category (i.e expense or income accounts), it really depends if you want to use a sub or a parent account. Assigning it to a sub account will make the transaction reported specifically under the selected sub-account instead of the parent.

You'll want to reach out to your accountant for additional advice with regards to this matter. 

Feel free to add a reply or post a separate question if you need anything else. 

Thank you so much for getting back to me!  I think I am still just a little confused and it's probably a misunderstanding on my part.  I don't have accounts "connected" to the online banking.  I only have checking accounts and credit card accounts connected to their respective online banking accounts.  When the bank feeds are automatically pulled into QBO, I go through all of them and manually categorize, make a note if needed, and then add them to our QBO account.  So, I can choose a parent account or a sub account when I am going through the transactions from the bank feed.  By doing it the way I just described, would it make more sense to choose only sub accounts for categorizing transactions?  Does it mess up the reporting at all or confuse it if I mark some transactions under the parent account only and some under the sub account?

Does my question make sense?  Lol!  I'm sorry!  I may be making it more complicated than it needs to be.  If I'm not phrasing my question correctly, I will give you an example of what I am talking about!

Thank you so much for your help!

Hello there, @Cass592b. Thanks for your response back.

In QuickBooks Online, creating subaccounts to break down your expenses, income, and other transactions will make your reports go into greater detail. For example, you can divide your utilities account into subaccounts so you can track different types of utility payments, like gas, telephone, water, and so on. You can create subaccounts of any main (parent) account because they keep your Chart of Accounts organized and make more detailed reports. Here's a Community Article that provides more information on how subaccounts work in QuickBooks Online.

I recommend reaching out to your accountant to see what's the best fit for your account. They can give you the best advice on how to categorize your transactions.

I'm always here if you have additional questions. Have a beautiful day!

Thank you so much for your response!  That all makes sense and my accountant thinks it's great if I want to add more sub accounts to give reporting in greater detail.  But, my question is, when I have a parent account with subaccounts, do I need to create a sub account for each of the different types of transactions to fit into or do I create a subaccount for some transactions that I may want to see separated out but I can still use the parent account for other transactions?  Here's an example of what I'm asking:

Parent Account: Travel

Sub Account: Travel: Meals

Then a transaction comes through the bank feed for airfare.  

Do I need to create a new Sub-Account for: Travel: Airfare?

Or would it be ok or make sense to categorize it as just the parent account: Travel ?

So, ultimately, if I choose to start using Sub-accounts under a parent account, do all expenses at that point need to be categorized to a sub-account and leave the parent account with no expenses in it?

Hey there, @Cass592b. 

Thanks for reaching back out to the Community. I'm unable to advise you on how to categorize your transactions based on your chart of accounts list and how they're set up, but I suggest reaching out to your accountant. They'll be able to give you the best accounting advice to ensure your books are accurate for your unique business. Before I go, check out these links below to help  you manage your transactions and chart of accounts. 

• How to categorize transactions
• Subaccounts in your chart of accounts

I want to make sure that your concerns are addressed, so feel free to let me know if you have any more questions. Have a splendid Friday! 

We had 3 store a few month ago and now 2 store but thinking about the 3rd store again. Do I still have the 3 store on my account

Hello @TP9,

Depending on how you created the store can help us determine if it's still active in your account. Did we create it as a separate subscription or a chart of account?

If it is created with a separate subscription, you can check it by following the steps below:

1. Go to the Gear icon.
2. Under Profile, select Switch Company.

But if it's created in your chart of accounts, you'll have to review the list of your account so you can check if it's still active. You can read through this article to learn more: Understand the chart of accounts in QuickBooks.

 While waiting, here's a few articles you can read for ideas about how you can manage your accounts: Help Articles for QuickBooks Online.

Let me know in the comments if you have any other questions. I'll be happy to lend a helping hand.