Easy Tech TutsHow to Set Up Sub-Accounts in QuickBooks Online Easily 2026
By Impran M N
Sub-accounts let you break broader account categories into more specific groupings, which is useful for tracking departmental budgets, project costs, or individual income sources. This guide walks through setting up sub-accounts in QuickBooks Online for clearer financial reporting.
01Open the chart of accounts
Navigate to QuickBooks Online's account management area where existing accounts and their structure are visible.
02Choose the parent account
Identify the broader account you want to nest a sub-account under, such as a general expense or income category.
03Create the new sub-account
Add a new account, mark it as a sub-account, and link it to the appropriate parent account.
04Name and categorize the sub-account
Give the sub-account a clear, specific name that reflects what it's tracking, such as a project name or department.
05Use the sub-account in transactions
Start assigning relevant transactions to the sub-account so it accumulates accurate data for reporting.
Frequently asked questions
How is a sub-account different from a class in QuickBooks Online?
Sub-accounts nest within your chart of accounts under a parent account, while classes offer a separate layer of tagging that can cut across multiple accounts.
Can I have multiple levels of sub-accounts?
QuickBooks Online supports some level of nesting, though it's best to keep the structure simple enough to stay easy to manage.
Why would a small business use sub-accounts?
Small businesses often use sub-accounts to track specific projects, departmental budgets, or distinct income streams under a broader category.
Do sub-accounts show up separately on financial reports?
Yes, sub-accounts typically appear nested under their parent account in reports, giving you both the detailed and combined view.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
