How to Convert a Standard Account to a Subaccount in Quickbooks
Are you trying to convert a standard account to a subaccount in Quickbooks? Accounts are the basis of all financial transactions. They are used to categorize related income and expenses. When using Quickbooks, though, you aren’t limited to creating standard accounts; you can create subaccount as well. You can even convert a standard account to a subaccount.
What Are Subaccounts?
Subaccounts are the subsidiary accounts that are placed under a parent account. All subaccounts are placed under a parent account. You may want to create a parent account for marketing, for example, followed by subaccounts for direct mail advertising, online advertising, TV commercials, etc. Each of these subaccounts is related to marketing. Therefore, they should be placed under the marketing parent account.
You can create standard accounts and subaccounts for all types of income and expenses. The key thing to remember is that subaccounts should be related to the parent accounts under which they are placed.
Steps to Converting a Standard Account to a Subaccount
You can convert a standard account to a subaccount in just a few steps. Assuming you use Quickbooks Online, you’ll need to log in to your account and click the “Settings” menu, followed by “Chart of Accounts.” This will reveal a list of all your accounts. Simply go through this list until you find the standard account that you want to convert to a subaccount.
After locating the standard account, click the drop-down arrow next to it. You should see an “Edit” link after clicking the drop-down arrow. Selecting the “Edit” link will expand the account box to reveal an option for “Is sub account.” You can then make the standard account a subaccount by clicking this box.
Keep in mind that you’ll need to choose a parent account as well. As previously mentioned, all subaccounts are placed under a parent account. The use of a parent account is what distinguishes standard accounts from subaccounts. You can choose a parent account after selecting the option for “Is sub account.”
In Conclusion
Converting a standard account to a subaccount is a breeze in Quickbooks. You just need to pull up it up in the chart of accounts, select the “Is sub account” option and then choose a parent account. Once converted, the subaccount will be placed under the parent account.
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