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Level 3

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For majority of small business one level is enough and only for accounts that make sense like the utility account and that's only it the owner wants to see the subaccounts.  At the end of the year on the tax return only the total utilities are reported and not the sub accounts.  Subaccounts make the P&L unnecessarily long and bulky, in any case if the owner wants to see the details behind any account you could always drill into that account and sum up by vendor and you get the same result...

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