Sub-accounts are recommended for companies that plan to send a mix of both paper and eChecks. This is because the Print Later selection can be used in both scenarios.
Using sub-accounts reduces user entry errors by helping segregate payment workflows. When users select Print Later and are sending a payment from a sub-account associated with eChecks, they know they are intending to issue an eCheck. By contrast, if they select Print Later and a bank account NOT associated with eChecks, they know the checks will be waiting for them to print on paper stock at a later time.
A best practice for using sub-accounts is to use the primary bank account for your paper check transactions and set up a sub-account (using the same banking information) from which you can issue eChecks. Another tip is to include the word 'eCheck' in the name of the sub-account.
Writing checks using a standard vs sub-account for the QuickBooks bank account(s)
For example, Sarah Smith has a thousand vendors all with email address and wants to be able to send both paper checks and eChecks.
- If she wants to send a paper check to the vendor, she would select the “checking account” as the designated account in the check writing screen.
- If she wants to send an eCheck to the vendor, she would select the "sub-account" as the designated account in the check writing screen.