Sub Accounts in QuickBooks: How to Use, Delete, Create, View, Convert & Make Sub Account

A separate account that is nested beneath a bigger account or relationship is known as a sub-account. The bigger account is named as a parent account and the small account is known as a subaccount or child account. Sub Accounts in QuickBooks are used to create a smaller version of the main account to add more clarity in recording the different types of transactions. Breaking down parent accounts into various subaccounts helps in monitoring the income and expenses for a particular category.

In this article, you will get to learn how to add, edit, delete, create, and convert subaccounts in QuickBooks Software for Windows and Mac. While setting up the company file, the Chart of Accounts is automatically filled out with the details of accounts as per your business’s data. To add new details or to track the amount of money that your company owns and owes, the total amount that comes in out, you will get an option to make edits to the existing account details. To gain more insights on this topic, keep reading this article!

How to Use Sub Accounts in QuickBooks

To keep your books organized and make reports simple to compile and read, QuickBooks gives you the option to set up sub-accounts under various account headings. This allows you to track expenses not only by type, such as travel, but also by the kinds of things you might need to buy while traveling, such as meals, a rental car, hotels, and petty cash. Reports are prepared in such a manner that it is easier to read because all of these sub-accounts appear under the trip title. In your chart of accounts, you can add sub-accounts to any parent account of your choice.

Setting Up Sub-Accounts

The instructions which are explained below should help you to set up sub accounts in QuickBooks:

• First of all, You have to select Chart of Accounts from the List menu by clicking on the list. Now, navigate towards the bottom of the window and click Accounts. From the list of accounts option, click on the New option.
• Now, You have to select your sub-account type by clicking on the type tab, and from the drop-down menu of Type, select Income, Expense, Liability, Asset, or Bank as per your choice.
• It is not possible to utilize an Income account as a sub-account for an Expense account; Sub-account types must match the parent account type.
• In the Sub-Account of the box, Select a parent account by selecting it from the drop-down menu and checking the box.
• Choose the relevant tax line from the “Tax Line” drop-down list by clicking it. Always remember that you have to provide only your sub-accounts access to tax lines so that you can prevent double entries from appearing on your tax filings.
• In case, If you have been maintaining a spending log for your account then always enter a starting balance in that area. If you haven’t yet entered the account’s first transaction and it’s a new account, leave the beginning balance at $0.
• Now, Select the OK button for the confirmation by clicking on it.

Using the Sub-Accounts

The steps that are described here should assist you in using sub-accounts:

• First, You have to navigate to the Accounting Menu.
• Now, From the drop-down menu of accounting, choose the write checks option from the list of options.
• Enter a sum in the Amount field once you select a vendor from the drop-down menu of the vendor.
• The correct information for that check (vendor check) should be included in the check number and the date fields.
• To choose the correct sub-account, you have to click on the drop-down menu which is available next to the Accounts column.
• The amount section must be filled in with the entire check Amount.
• In case, you typed a check for a sum that would be split between two separate sub-accounts then you have to change the sum next to the sub-account that you already selected and then repeat this process with the next line down.
• Once you are done with all the above steps, Just press the save button to save all the changes that you have made.
• Lastly, You need to select the close button to exit from the screen.

Subaccounts are used to separate any reports that contain the parent account.

How to Add, Delete, and View Sub Accounts in QuickBooks Desktop (Windows or MAC)

Here are the steps to add and delete the details of the sub accounts in QuickBooks Desktop software, for Windows as well as for Mac iOS.

Steps to Add a Subaccount

To monitor particular accounts under a parent or primary account, you can further create subaccounts. For instance, your parent’s utility account contains separate subaccounts for gas, phone, and water bills.

For Windows-based QuickBooks Desktop Users

• First, navigate to the Lists menu and choose Chart of Accounts.
• Choose New from the Account dropdown menu.
• After choosing an account type, click Proceed.
• Input the account information.
• Check the box next to Subaccount.
• Choose the parent account from the Subaccount of dropdown.
• Click Save & Close.

Note: The account type of the parent and subaccount must match.

For Mac iOS QuickBooks Desktop Users

• First, navigate to the Lists menu and choose Chart of Accounts.
• Click Create +.
• Choose the account type from the Type dropdown menu.
• Input the account information.
• Check the box next to Subaccount.
• Choose the parent account from the Subaccount of dropdown.
• Click OK.

Steps to Delete a Sub-account

To keep your chart of accounts organized, you may want to remove accounts that you don’t use. You will get the chance to remove the account under the following circumstances:

• It is not used in any transactions
• It is not assigned to any line items
• It doesn’t have any subaccounts; If it does, you must delete or move the subaccounts to another parent account.

For Windows Users 

• You must click on the ‘Lists’ menu, then select the ‘Chart of Accounts’ option.
• To edit the account details, you will have to right-click on the account from the list.
• Select the ‘Delete Account’ option and then click on the ‘OK’ button.

For Mac iOS Users

• You must click on the ‘Lists’ menu, then select the ‘Chart of Accounts’ option.
• Now, you will have to choose the account you want to delete.
• Choose the ‘Edit’ menu, then select the ‘Delete Account’ option.
• Lastly, you will have to click on the ‘OK’ button to save the changes.

View Sub Accounts in QuickBooks

To review the accounts, in addition to running a Quick report, you might want to try running a transaction detail by account report. To get more information about transactions per account, adjust it to the parent and sub-accounts. So for that, follow the following steps to view the sub accounts in QuickBooks:

• Navigate to the top menu and then select the Reports option.
• In reports, Select the Accountant & Taxes option.
• Click Transaction Detail by the Account.
• Check the box for the Customize of the Report.
• Now, Choose the Filters as per your requirement.
• Choose Account under the Filter tab.
• Click on the account drop-down and choose Multiple Accounts from it. The parent account and any sub-accounts should then both have a checkmark next to them.
• Then click OK and Exit from the screen.

How to Create Subaccounts in QuickBooks Online using Chart of Accounts

In QuickBooks online, You will be able to break down your costs, income, and other items in more depth if you have created sub-accounts. You can create a parent account’s subaccounts if you already have a primary account. Additionally, arranging the Chart of Accounts in QuickBooks Online with the help of a subaccount can help you in maintaining the integrity of all the data.

Creating of New Sub Account

Follow the instructions which are listed below carefully to add a subaccount to an existing account. You may even open a new parent account if you need to.

• First, You have to navigate to the settings icon and click on it to open it.
• Now, Select the Chart of Accounts option from the setting’s options.
• From the menu of the chart of accounts select New.
• Then select the Account type and the Detail type of the account.
• Select a suitable parent account for this subaccount but after checking, the box must be labeled as sub-account.
• Enter the name of the subaccount a distinctive name, and if you like to include a brief description about the subaccount then you can do it in the description field.
• Next, Click on the QuickBooks option for when you want to start tracking your finances from this selected account.
• Once You’ve completed all the steps above, simply click the save button to keep all the changes you’ve made.
• If you want to leave the screen then click on the close button and exit from the screen.

Converting an Existing Account into Sub-Account

To convert the existing account into a subaccount, follow the instructions that are stated below:

• Press the gear icon. Then the Chart of Accounts will be open in the Settings.
• Now search for the account that you want to convert and then use the arrow to the right to select the Edit option.
• Select a parent account for this by checking the box that says “Is sub-account.“
• At last, You have to hit the Save icon and then Close.

Make a Sub Account as a Master Account?

There are six simple steps that you have to follow to make an account as a master account:

• Firstly, You have to access Your Account Online by logging in with the help of your ID and Password.
• Now, Verify your eligibility for an Upgrade.
• Upgrade Your Account by selecting it.
• Read all the Information before you move forward.
• Accept all the terms and conditions.
• Once done with all the above steps then exit from the screen by hitting the close button.

Removing of a Sub Account from the Chart of Accounts

Since these are needed by QuickBooks as a default account, such as your Sales Tax account, there are some accounts that you cannot delete in QuickBooks. In addition, to delete a subaccount, adhere to the directions provided below.

• Navigate to the gear icon and click on the gear tab.
• Now, Select settings, and from the list of options settings, click on the Chart of Accounts.
• After that, Search for the account that you want to remove right now by using the search bar.
• Following that, Choose Make inactive by clicking on the Action drop-down arrow.

Convert an Existing Account Into a Sub Account

All the parent accounts and the subaccounts in the Chart of Accounts must have the same type of account. Start by making each subaccount a parent account so you may update the account types for all of the accounts in the group. After that, alter the parent account’s type and re-add each of the other accounts beneath it. In this way, you can change the type of existing account or sub-account in QuickBooks.

Start with the subaccounts to alter the account types of the accounts, and when all of them have been altered, alter the parent account. Verify that you are in Accountant view before moving forward.

• Navigate to Settings and choose the chart of accounts from the option.
• Now, Search for the first subaccount that you want to modify.
• Select Edit from the Action column dropdown menu.
• To select a different account type, Click the Save account under menu.
• In the Tax form section, Choose the relevant detail type from the menu.
• Choose the save button to save the changes.
• Changes to the Account Type may have an impact on your accounting and reporting, you are prompted.
• To change the account, Click the yes button when prompted.

Follow these instructions once more for the remaining subaccounts, after which you should modify the parent account’s account type.

Returning of the Account to the Status of Subaccounts

When all of the accounts have the same account type, you can update the subaccounts to revert to their original subaccount designations and re-link them to the parent account.

Accounts can be upgraded to subaccount level by:

• Select Chart of Accounts under the Settings options.
• Return to a subaccount once you search the account.
• Select edit in the dropdown menu for the Action column.
• The savings account under the dropdown list should have the Parent account which needs to be selected.
• Finally, You need to press the save tab to save all the changes.

For every subaccount, repeat these procedures.

Conclusion

You now understand the straightforward processes for creating subaccounts in QuickBooks Online. Additionally, We’ve shown you how to convert an existing account into a subaccount or, If you no longer need it, remove it. If you need help setting up a subaccount, you can also connect with our Dancing Numbers team by calling us or live chat messaging us for a prompt resolution.

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