QB Issue Resolution:

I recommend this:

“then by sales income¬†or service income”

The best reference for the chart of accounts is the Tax form this entity files. It can be That Simple. Rely on item-based reporting and the Job Reports to give more details. The tax form has One line for income. You might break it into those two, but rely on Items to give more details, such as Service items for Clearing, Soils Engineering, Forms, Plumber, Electrician, etc, not more accounts.

“Our company tracks income by State sold in”

State = Customer Type or Job Type. Now you can also use Subtypes, such as State:Residential or State:Commercial or State:Governmental, for Types.

“then sales type: new pool or deck/renovated pool or deck”
That could be Customer Type = the State; Job Type = the Project Type.
“then service type: service call, parts,¬†travel, etc.”
That is the items.
You don’t want Subaccounts. You want all of the Operational activities to be Items.
You can see this in my attachments.

Resolution for Issue 'setting up items: what is the difference between subitem and account?' available: Yes (Solved).
Source: Intuit Community forum.

setting up items: what is the difference between subitem and account?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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