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How Do I Create A New Category Or Subcategory?

April 8, 2021
Bill Kimball

how to create subaccount in xero

I don’t want to spend hours designing report layouts when a simply subaccount will give me the presentation look I want to achieve. Finding this system more limiting as I try to do more in it and it is becoming annoying. Would be great if we could create sub accounts for Chart of accounts like Quickbooks. This would help for simple reporting or more detailed reporting.

how to create subaccount in xero

If you’re basically making this a report that will become the standard, you can also tick Make this the default Profit & Loss for all users. Maybe some Xero veterans will look at this and think ‘I can’t believe they’re posting about this! ’ Hopefully one day we’ll think the same thing too. But this is the view of the journey as it’s happening, not a retrospective slideshow where we’ve had the time to collate the best shots. So if you don’t mind indulging me a little, here’s the solution. I rushed out of that webinar and immediately called Tim at FGS. This may be getting old, but it’s another example of why we need them on this journey with us.

Business Management

I do not want to put M/V Fuel and have it under a header saying Motor Vehicle. Clients quite often type the account name such as repairs and then select the wrong account between general repairs and M/v repairs. The issue Ken is that this “header account”‘ will never feature in a report. You can then edit layout of P&L reports so that all transactions between 400.00 and 400.99 , are reported just as advertising.

  • You have to either transfer the month’s cards’ totals to the billing account or transfer the card part of the payment to the card accounts.
  • It would be so simple as all the information is already there.
  • The liabilities category is where you keep track of your company’s debt obligations or what your company owes or may owe in the future.
  • But with some small business owners still chained to their ledgers, switching over all your financial data to a cloud accountancy software programme can seem like a leap too far for many.
  • Consider our guide more of a companion piece, a set of tips to help streamline the process, learned over years of getting to grips, and watching others attempt to get to grips with the realigning to Xero.
  • This will put the category into the Business Income or Business Expense tab in the Category List and Category drop-down in the register, and include it in all applicable Business reports.

Dependent on your reporting needs, you may not have to bring in every transaction from your Payment Gateway and can instead use a shortcut, but it’s best to discuss your requirements with your accountant. We believe that Xero is best used alongside an accountant or financial advisor. Not because the software is lacking, but an accountant is best placed to help advise on best use, translate your findings into actionable strategies, and, moreover, do all that boring reconciling for you.

The last category listed on the chart of accounts is the expense category, which usually is numbered 5000. A handy way to list expenses in the chart of accounts is to look at IRS Tax Form Schedule C and follow the way expenses are listed on that form. That makes it easy for you and your accountant when tax time comes. Develop an account for each of the expenses listed on Schedule C plus any other expenses specific to your firm.

It’s a more intuitive way to connect and chat all things business with one another. Ask questions, dish out answers, and get involved. Plus I felt like we ran out of interesting things to say. We’re still on the journey to some extent but things just became more routine and normal. I still keep it live though in case there’s anything here that might help others. You then just need to save these adjustments to the layout. On the right hand side of the layout window, either keep the same name or if you want to save a new report, rename it.

Change The Xero Account For A Product

At bank of america the primary account only shows interest/fees/payments. The way this is listed on BofA is 3 separate accounts.

Explore features and tools built for small businesses, accountants and bookkeepers. If you want to change the default account that all invoices use, then this can be edited at any time. You can also set different Xero account codes for your individual services and products which makes it easier to track those sales in Xero. This can be easily prevented, however, by locking in your dates each time a reporting period is finalised, utilising the ‘lock dates’ feature of Xero.

how to create subaccount in xero

If you can, switching to Xero at the start of the financial year is always more ideal. It’s good practice to use the accounts space wisely, conglomerating reporting unless it is necessary for separate items like key expenses. Make sure you set these up using the correct names so they are later coded accurately, to ensure you get a clear view of how your business is running. Consider our guide more of a companion piece, a set of tips to help streamline the process, learned over years of getting to grips, and watching others attempt to get to grips with the realigning to Xero. I have set up bank feeds on all the individual cards as I want the users to log in and enter the account information themselves, particularly the GST. However as they aren’t showing the repayment transfer, I can’t balance the accounts. As you can’t use transfer because the payment is going to several different cards, I’d suggest creating a Credit Card Clearing Account and code the payment and the receipts to it.

Make sure you save as a template so that these groups display the next time you run your report. I know that some of you are probably used to having a hierarchical chart of account structure in other accounting software, but that wasn’t how Xero was built. Xero has a flat COA system that is supported by flexible reporting, and Tracking categories.

For Accountants And Bookkeepers

– There’s also a related feature request for this it’s been ‘closed’ as per our Official reply there, but you may be interested in the discussion. You can tailor Xero’s default Chart of Accounts to suit your business by adding, editing or removing accounts, Jarod. Sub-accounts generate the ability to drill down further and categorise each transaction in more detail. For the business owner, I think this is a requirement, rather than a feature in a modern accounting application. I can get Support in touch with you to talk over the account structure in Xero if you’d like, Rick?

Done right, it will make all your other jobs so much easier. Hi everyone, right now you can’t create sub accounts in Xero. Your reports can be customised to group accounts in the Profit & Loss and Balance Sheet, showing separate balances or rolling them up to show the one total. Another option is to use Tracking to report of specific areas of your organisation. In Xero the credit card accounts show negative the same as an overdraft when you make charges against the card. If you pay off everything you owe on the credit card the balance will go from negative back to zero. Does the statement for account A show transfers from A to AB and AC?

When that template is is applied to the report, you will only see the results at the highest level. If you want to see a lower level of detail, you click the line in the report and you will see the individual items that make up that number . I have a credit card account with two sub accounts. The first one is bank feed activated and the other one is not. Is it possible to activate the second account in order to not import the statements from time to time.

The asset category is where you keep track of what your company owns. You may want your asset category to start with the number 1000. That is usually the number that computerized accounting programs use.

I assume that there is one payment coming out of the main check account to pay both cards. In the check account when the actual payment clears you would simply allocate it against the TWO transfers. In the CC accounts you will need to Mark As Reconciled in each account. @Kevala, you can create groups in reports by editing the layout with both old and new reports. You can customize the layout and save it for future reports, or even set it as the default. I suggest you make good use of the trial period to try it out. Xero doesn’t support grouping/heading accounts in the COA.

Our current account and the two credit card accounts. I think it might help people understand the lack of effort Xero is putting into this issue if you actually explain what design principle is serviced by not allowing sub-accounts. Considering Xero’s slogan is “beautiful accounting software”, it’s hard to reconcile such an inelegant and clunky way of grouping accounts with your professed design philosophy. A chart of accounts groups together transactions of a certain type.

I’d like to perform fund accounting to track grants and other restricted funds. Xero’s philosophy of being “beautiful” really shines here. Instead of having a bloated and clunky chart full of sub-accounts, Xero has two functions available to all users – report grouping, and tracking.

I’ve added accounts at lowest level of detail in chart of accounts. While I think that having sub accounts would indeed be a helpful thing for Xero to implement, in your case, as already said, tracking would work better. you can informally structure your chart of accounts – it is one of the first things I did on taking over here.

Select “Transfer Money” again, and enter the amount for the second account and save. We have a few clients that have this very same scenario with 2 corporate cards with both Bank of American and Chase. I think that someone would need to see exactly what is happening in the feeds to be able to advise any further. For free support you could invite Xero Customer Care in as a User to your ledger, then send them an email. Or I can do a live support session with you and advise you accordingly in real time. Xero-award winning Most Valuable Professional accountant serving NZ, Canada and US. Book a paid live remote Xero support session with me or use our self-paced Xero training.

If the category is for tracking tax-related transactions, click the Tax Reporting tab and then select the Tax-related check box. Category Group – A group of categories used for budgeting purposes. For example, you can assign the categories Movies and Books to the category group Discretionary and assign a budget amount to track your discretionary expenses. In previous versions of Quicken, Category Groups were referred to as Supercategories. Indicate whether the category is for tracking income or expenses. Specialized investment categories, which begin with an underscore , appear in the Category List as soon as you add an investment account. Xero simply does not provide this functionality in either their API or the native product.

It also will include your accrual accounts, which include what you owe in payroll taxes and sales taxes. You also will have an account for accrued wages. You might also have a current liability account for credit cards payable and short-term loans payable. The liabilities category is where you keep track of your company’s debt obligations or what your company owes or may owe in the future. You may want to start numbering the liabilities section with 2000. Just like with the assets category, you want to follow the traditional form of the balance sheet in developing the liabilities section of the chart of accounts.