What are group and sub-group codes?
Group codes are used to group similar accounts together so they can be reported as one amount on a tax return or financial statement. For example, if you have 10 bank accounts and want to report them as one amount on your financial statements, you could assign a group code of “Cash” to each of these accounts. When you print the Grouped Trial Balance, accounts with the same group code will be added together. Sub-group codes are similar to group codes except they are used to group accounts that have a group code assigned to them. For example, on a corporate income tax return (IRS Form 1120), you need to know the cost of goods sold amount to report on page 1, and on page 2, you need to break out the components of the cost of goods sold, which may be purchases, labor costs, and various other costs. All the accounts that are to be grouped together to get the “cost of goods sold” number on page 1 would be assigned a group code. Perhaps something like “COGS”. Any accounts that need to be adde
