Introduction
It 's the little box with the new account you just entered. The box is to create a 'sub-account "and it gives you the opportunity to draw a better organization. Hardly anyone ever used though. When is a good time to use them? This article will address this problem.
Self Pest Control
Fixed assets
The creation of accounts sometimes up to five different accounts for the same element of a system. With a vehicle as an example, let's see whatto create sub-accounts. First, create an account for the vehicle, it is a system so the name of the first price of the car as the primary account.
Then, create a sub-account key and call it "the cost of the vehicle," the beginning of the balance of this account is the amount paid for the vehicle, not to mention the deposit or trade in large quantities. We say that a vehicle is $ 20,000, the balance of the "cost of the vehicle" sub-account would be.
Then, create a secondary account in "value of the vehicle 'and the name "accumulated depreciation - Vehicle" (you may need to abbreviate). The beginning balance of zero in the first year, but it is recorded in the negative. So after the first year, there will be a - $ 5000 in this sub-account. If you deduct the cost of depreciation, the value of the vehicle now at $ 15,000. To capture this negative amount is a necessary expense account, taking from it. Create a sub-account of depreciation and call it a "vehicle" allfollowed by fixed assets, with depreciation costs are sub-accounts under the category of depreciation of the sum of all are the main category of the amortization.
Most companies pay, but not in cash for a vehicle to use the funding. You need a long-term liabilities account for the vehicle in which the opening balance is the amount of the loan used to create the purchase of vehicles. This amount may be different from the value in the valuetake account of deposits or trade ins.
Create a sub-account with the long-term debt, they call it "car loan". Create another sub-account with the interest and the name "vehicle of interest". When you receive the first bill, the amount of monthly payment between the "vehicle of interest" and "auto loan" categories will be divided. Assign the payment of the loan in QuickBooks is a debt that state that have not paid.
If there is morea vehicle, it is good to have a separate category for each individual effort, providing a clear picture of what you can spend on each vehicle. Under the auto maintenance account created the sub-account "Fuel - Vehicle 1" and "Maintenance - Vehicle 1 '(and the interest of a vehicle, a car loan, etc.)
Other expense accounts
There is a general catch-all category called "Utilities. Create sub-accounts' power 'water' for 'phone',,, etc., and make public benefit of the parentCategory. This will help break down the individual utility companies more accurately manage your expenses.
Consolidated accounts
If your company has a two or three pillars of income, you can create separate sub-accounts within the sales income. For example, an income maintenance lawn lawn care company simple, sprinkler systems, pest control, etc. A separate sub-account for each of you will help this situation. With only one account for revenue, makesdifficult to decide whether you need to focus on more profitable areas of your business.
Conclusion
A word of caution for the use of sub-accounts. If you do not start with them, and you have several years worth of income and expenses for what the parents are related accounts, which should have all new titles and sub-accounts. It 'important that these accounts from the beginning and get some help with your installation of QuickBooksSoftware.
Proper use of sub-accounts in Quickbooks