QuickBooks QuickTip #6: Using Sub-Accounts Properly When Entering Transactions

Posted by: Carol Post date: May 5th, 2011

The other day one of my online accounting services clients pulled up a Profit and Loss statement in QuickBooks and noticed a new account listed:

Insurance
Disability
Liability
Insurance – Other

She wanted to know: what was Insurance – Other?

QuickBooks provides subaccounts to allow users to create a tidier, more streamlined chart of accounts and more detailed reports. In the example above, “Disability” and “Liability” are subaccounts. “Insurance” is the main account.

When sub-accounts exist, QuickBooks expects you to use them, not the main account. If instead, you categorize a transaction to the main account, then when a report is pulled up, QuickBooks creates an account called “Other” to display it.

Always be aware of sub-accounts when posting transactions.

Carol Dubs, CPA
QuickBooks ProAdvisor
Online Accounting Services

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