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Add subaccounts

Why use subaccounts?

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 manner:

Advertising

   Direct Mailings

   Newspaper Ads

   Signs

   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 subaccounts.

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?

During the Easy Step Interview, if you selected Other / None on the How is your company organized screen, the Tax Line drop-down list will not appear when you add a new account (or edit an existing one).

To add the Tax Line drop-down list to account setup

  1. Go to the Company menu and then click Company Information.

  2. In the Report Information section of the window, click the Income Tax Form Used drop-down list and choose the income tax form that is used by your company.

  3. Click OK.

A Tax Line drop-down list of forms and schedules will now be available when you're adding or editing accounts. The Tax Line drop-down list will appear for all new accounts you add, but will not automatically be added to existing accounts. However, you can easily edit your existing accounts to manually assign tax form lines to them.

To do this task

  1. Go to the Lists menu and click Chart of Accounts. Shortcut

  2. Click Account at the bottom of the list and click New.

  3. Click the Type drop-down list and choose an account type.

    The account type must be the same as the parent account. For example, if the parent account is an expense account, the subaccount must also be an expense account.

  4. Click Subaccount of and then select the parent account.

    The subaccount inherits the active or inactive status of the parent account.

  5. Enter any additional information that you need to describe the subaccount, such as a description or note.

  6. (For income and expense accounts) Click the Tax Line drop-down list and choose the appropriate tax line or .

    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.

  7. If applicable, enter the starting balance and starting balance date of the account.

    • Restriction regarding balance sheet accounts

      • If you are a sole proprietor: Assign tax lines only to income and expense accounts.

      • If you are a Corporation or Partnership: Most balance sheet accounts are preassigned. For accounts that are not preassigned, select the appropriate tax line from the list.

    • Why should I select a tax line?

      Associating a tax line with each account lets you:

      • Import tax data into our TurboTax or ProSeries tax products.

      • Create tax reports in QuickBooks that help you prepare tax forms. The reports show the amounts to fill in for each tax line on the tax forms.

      Choose the tax line on which you would report the income or expenses tracked by this account. For example, if the account tracks your automobile expenses, you would choose "Schedule C: Car and truck expenses." If you are not sure which tax line to choose for this account, check with your accountant.

    • What if the list of tax lines is missing

      During the Easy Step Interview, if you selected Other / None on the How is your company organized screen, the Tax Line drop-down list will not appear when you add a new account (or edit an existing one).

      To add the Tax Line drop-down list to account setup

      1. Go to the Company menu and then click Company Information.

      2. In the Report Information section of the window, click the Income Tax Form Used drop-down list and choose the income tax form that is used by your company.

      3. Click OK.

      A Tax Line drop-down list of forms and schedules will now be available when you're adding or editing accounts. The Tax Line drop-down list will appear for all new accounts you add, but will not automatically be added to existing accounts. However, you can easily edit your existing accounts to manually assign tax form lines to them.

  8. Click OK.

See also

KB ID# H_COA_TASK_SUBACCOUNT_ADD
10/31/2014 10:06:41 AM
PPRDQSSWS401 9102 Pro 2013 ab281a