There are times when a unique transaction seems to justify creating or maintaining an account. However, over time that account is used minimally but stays on your Chart of Accounts because it is linked to a very small number of transactions. It may be prudent to consolidate this account with a small amount into a larger account.

In the example below, the subaccount "Supplies:Paper" has an amount of only $4.50 in it. That’s too small an amount to justify its own account, so you want to consolidate it with a larger account (in this case, Supplies: Office"). You can consolidate the accounts by either editing the transactions using QuickZoom and reapplying them to the larger account (refer to Page 14) or merge the smaller account into the larger account (refer to Page 22).

The procedure we have chosen in this example is to merge the accounts together.

Procedure:

1) In the Chart of Accounts, click on "Supplies:Paper".

2) With "Supplies:Paper" highlighted, click on "Account".

3) From the pop-up list select "Edit Account ".

4) In the "Name" box, delete the name "Paper" by dragging the cursor over
the letters to highlight them and backspacing once.

5) Type in the word "Office".

6) The box to the left of "Subaccount " is already checked, so you can simply click "OK"to record the transaction.

7) You are asking QuickBooks to create "Office" as a subaccount of "Supplies". Since that subaccount already exists (it is the one into which you want to merge your transactions), QuickBooks will ask you if you want to merge these accounts.

8) Click "Yes".

9) Recreate your Profit and Loss report and you will notice that the account "Supplies: Paper" has disappeared. The transactions that were in that account now appear in "Supplies: Office." By consolidating an account with a small amount into a larger account your reports and Chart of Accounts are more precise.