To make a large account more manageable or to group
related expenses together for your reports, it's
useful to set up subaccounts. Another way to think
of this is that you are breaking down general expenses
into greater detail.
In QuickBooks, the more general
category of expenses is called a "parent
account." The more detailed categories that
are grouped under the parent account are called subaccounts.
Subaccounts let you track several related types of
income or expenses independently yet keep them all
under the "umbrella" of
a single parent account.
For example, if your business has substantial advertising expenses, you
might decide to divide your Advertising expense account into several
subaccounts, such as Newspaper Ads, Signs, Yellow Pages Listing, and Direct
Mailings. Your chart of accounts displays these accounts in the following
Yellow Pages Listing
Your reports will now show subtotals for the various ways that you advertise,
as well as the total for all of your advertising.
In your chart of accounts, each subaccount appears indented immediately
below its parent account. If the subaccount is a balance sheet account, QuickBooks
includes its balance in the balance of the parent account. When you open the
register of the parent account, the register shows all the transactions in the
Important: To avoid duplication in your income
tax reports, don't
assign tax lines to both the parent account and its
subaccounts. Assign tax lines only to the subaccounts.
To do this, click the Tax Line drop-down list in
the New Account or Edit Account window, and choose
the appropriate tax line, or choose .
What if the Tax Line field is missing?