Ways to handle subaccounts from your previous chart of accounts

Xero doesn't allow subaccounts in the chart of accounts, but you can use tracking categories, rename accounts, and group related accounts in report layouts instead.

Classify accounts using tracking categories

Tracking categories could work well for you if used to divide your accounts into particular groups. For example, department codes or cost centres.

There's a maximum of two tracking categories, with up to 100 tracking options within each.

Set up tracking categories to monitor different areas of your business

Rename accounts to show what group they belong to

You can rename accounts to mirror the subaccounts you used before. If your original chart of accounts had a format like this:

Account typeAccount name
Main account400 Sales
Subaccount405 Merchandise

In Xero, you could name the account '405 Sales: Merchandise'.

Image of user entering new account details in Chart of Accounts. Code '405'. Name 'Sales: Merchandise'.

Group related accounts together in customisable reports

Image showing PDF of report, Turnover section, with Merchandise under Sales.

Newer reports

Our newer customisable financial reports have an Edit Layout button that takes you to the layout editor. You can create a new group of accounts, then click and drag accounts into it.

Older reports

Customise older reports using the Layout Options button. You can create or edit a layout to include a new account group. You can set up an account group so any accounts beginning with a certain number or within a certain account code range go into that group.

Image of older report with a Layout Options button at the bottom. User clicking the button to select 'Create new layout'.