Creating a New Parent Account in QuickBooks Online
Learn how to create a new parent account in QuickBooks Online and how to create or make a sub-account.
There are numerous reasons why you’d want to make a new account in QuickBooks Online. Too often, the default accounts that exist don’t quite fit the purpose of an account that you need.
For instance, Amazon sellers may want a parent account for all of their Amazon expenses. Or they may want to track Amazon expenses separately from their other accounts.
Creating a new income, expense, or bank account to track your Amazon income and expenses is a great way to see the impact of Amazon on your business. You might also track other marketplaces in separate accounts in QuickBooks Online.
Having separate accounts for Amazon, eBay, and Shopify will give you better insight into your business.
To create a new parent account, go to your Chart of Accounts.
Click on New.
Select the Account Type and Detail Type that best describes the account. Give it a Name that is descriptive so that you’ll recognize it on reports.
In our example below, we’ve created a parent account called Amazon Expenses.
Save your account.
If you want to create another sub-account linked to Amazon Expenses, then click on the New button again.
Choose the Account Type, Detail Type, and give it a descriptive name. The sub-accounts must be the same Account Type as the parent account.
Click on “Is sub-account” and select the parent account you want.
You won’t be able to create a sub-account that is an Income with a parent account that is an Expense.
If you use SellerZen to sync and automatically import your Amazon transactions to QuickBooks Online, then you can map non-order transactions under the Settlement page.
Once you map those individual accounts, they’ll show up on your Profit and Loss Reports. You’ll know exactly how much you spent on certain Amazon expenses instead of seeing them all summarized into one account.
Learn more about custom account mapping on SellerZen.
In the image above, we see a parent account called “Amazon US Other Expenses.”
The accounts underneath are all sub-accounts. Setting up the accounts in this way gives users the ability to minimize and expand reporting to see the details that they need.
But you can also separate your accounts by different marketplaces so that you can see how much you’ve earned through each platform.
Separating accounts by marketplace or organizing them in a clear way can give you a better picture of your business and where to focus your efforts.
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