How to Create Sub-Accounts in the Chart of Accounts — QuickBooks Online

Sub-accounts let you organise the Chart of Accounts in greater detail while keeping your main reports clean. Instead of cluttering the list with dozens of similar accounts, you nest specific categories — such as NSSF or PAYE under Salary and Wages — beneath a single parent account, and their balances roll up into the parent’s total on reports.

Step 1 – Open Settings

Click the Settings (gear) icon in the top-right corner of the navigation bar, immediately to the right of the search bar.

Figure – Opening Settings

Step 2 – Open the Chart of Accounts

In the Settings menu, select Chart of accounts under the YOUR COMPANY section.

Figure – Opening the Chart of Accounts

Step 3 – Create the Parent Account

Click the green New account button at the top-right of the account list. This first account will be the main (parent) account that the sub-accounts sit under.

Figure – Starting the parent account

Step 4 – Complete the Parent Account Details and Save

A Account name – Enter the parent account name — in this example, Salary and wages.

B Account type – Choose the correct type. The sub-accounts must use the same type.

C Detail type – Choose the sub-category that best describes the account.

D Description – Optional internal note about what the account holds.

E Save – Click Save to create the parent account.

Figure – Completing the parent account

Step 5 – Start the Sub-Account

Back on the Chart of Accounts list, click New account again to begin creating the first sub-account.

Figure – Starting the sub-account

Step 6 – Complete the Sub-Account Details and Save

A Account name – Enter the sub-account name — in this example, NSSF.

B Account type – Select the same account type as the parent.

C Detail type – Select the same detail type as the parent.

D Make this a subaccount – Tick this box to nest the account under a parent.

E Parent account – Choose the parent account created in Step 4.

F Description – Optional internal note about the sub-account.

G Save – Click Save to create the sub-account.

Figure – Completing the sub-account

Step 7 – Lock the Parent Account

QuickBooks asks whether to lock the parent account. Locking is optional but good practice: it keeps the parent empty so every transaction is posted to a specific sub-account, and the sub-account balances still roll up into the parent’s total on reports.

Figure – Locking the parent account