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 you previously divided your accounts into particular groups. For example, department codes or cost centers.
There's a maximum of two tracking categories, with up to 100 tracking options within each.
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 type||Account name|
|Main account||400 Sales|
In Xero, you could name the account '405 Sales: Merchandise'.
Group related accounts together in customizable reports
Our newer customizable 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.
Customize 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.