Make an account inactive on your chart of accounts in QuickBooks Online

Learn how to make accounts inactive from your chart of accounts.

Keep your chart of accounts simple and organised. QuickBooks Online lets you deactivate accounts instead of deleting them, which helps to access past transaction data for reporting purposes.

If you've never used an account or its balance is $0, you can easily make it inactive. However, active accounts will take a bit more work. Since accounts rely on each other to stay balanced, deleting data from one affects everything else. We'll guide you through what you can do so you can make the best choice.

There's a big difference between disconnecting an account from online banking and deleting one from your chart of accounts. Here are a few tips to keep in mind.

Note: If you are looking to make a banking account inactive, it's better to disconnect it. Then, QuickBooks stops downloading new transactions, but your existing accounting data won't change.

Disconnect accounts connected to online banking

Instead of deleting accounts that are connected to online banking, we recommend disconnecting them. This simply stops QuickBooks from downloading new transactions. If you disconnect an account from online banking, your existing accounting data won't change. You can reconnect it any time to start downloading transactions again.

When you disconnect, QuickBooks deletes transactions that you still need to categorise in the For Review tab. If the transactions are older than 90 days, you won't be able to download them into QuickBooks again.

Prerequisites

Before inactivating a balance sheet account, make sure its balance is zero. If it isn’t, QuickBooks Online will create an automatic adjustment entry to zero it out. This automatic entry is added to the Opening Balance Equity account. This can affect past-year balances and cause wrong tax reporting.

What to know before making an account inactive

• You cannot permanently delete an account, except for merging one account into another.
• Making an account inactive doesn't remove its transactions. Transactions associated with any deactivated (deleted) account stay intact.
• You can't edit a transaction associated with an inactive account. To edit or delete the transaction, you must restore the account first. Then, go to the register and delete the individual entry. After that, analyse the account and correct it to a zero balance before deactivating it.

Make an account inactive to delete it

Note: Before you start, reach out to your accountant. Make sure this change is right for you.

• If you've never used an account or its balance is $0, you can easily make it inactive. Since accounts rely on each other to stay balanced, deleting data from one affects everything else.
• If you make an account with a balance inactive, QuickBooks creates a journal entry. This moves the remaining balance to another account. Your existing transactions don't disappear and stay on your financial reports. However, if you decide to use the account again, QuickBooks won't move the balance back or change the journal entry.

Some accounts require extra steps before you can make them inactive:

• If products or services use the account, change the account they're linked to. Or you can make products and services that use the account inactive.
• If you want to delete an income account with pending charges, invoice your customers for the billable expenses, time, or charges. Then you can delete the account.
• If you have recurring transactions linked to an account, you need to unlink them.
• If the account has subaccounts, move the subaccounts to a different account on your chart of accounts. You can't delete accounts with subaccounts.

Make an account inactive:

1. Go to Settings ⚙ and select Chart of accounts.
2. Find the account you want to delete.
3. Select the Action ▼ dropdown and select Make inactive.

See inactive accounts

When you run reports, you’ll still see inactive accounts and their transactions. QuickBooksincludes them to keep everything accurate. You can customise some reports to hide inactive accounts, but this may affect accuracy.

If you want to see your inactive accounts in your chart of accounts:

1. Select Settings ⚙, then select Chart of accounts.
2. Next to the printer icon, select the Settings ⚙ icon.
3. Select the Include inactive checkbox.