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

Note: Before you start, reach out to your accountant. Make sure this change is right for you. Don't have an accountant? We can help you find one.

Also, before you make a balance sheet account inactive, make sure its balance is zero. If not, QuickBooks Online creates an automatic adjustment entry to zero it out and adds it to the Opening Balance Equity account. This can affect balances and GST reports.

1. Go to Settings ⚙, and select Chart of accounts.
2. Find the account you want to make inactive.
3. Select the ▼ dropdown in the Action column, then select Make inactive.
4. Select Yes, make inactive.

• You can’t delete an account, you can only make it inactive or merge it with another.
• When you make accounts inactive, you won’t remove their transactions.
• You can't edit a transaction related to an inactive account. You must restore the account first to do so. Then, you need to go to the register and delete the entry. Afterwards, correct it to a zero balance before you make it inactive again.
• If you make an account with a balance inactive, it may affect your other balances and reports.  
• If you make an account with a balance inactive, QuickBooks creates a journal entry. This moves the balance to another account. Your transactions stay on your financial reports. If you decide to reactivate the account, QuickBooks won't move the balance back.

Default accounts

You can't make default accounts inactive. QuickBooks uses certain accounts as default accounts for features.

Accounts that use products or services

If products or services use the account, you can’t make them inactive. To do so, you can either:

• Change the account they're linked to. 
• Make the products and services inactive.

Accounts with pending charges

If your income account has pending charges, you can’t make them inactive. To do so, you can invoice your customers for the billable expenses, time, or charges.

Accounts linked to recurring transactions

If you have recurring transactions linked to an account, you need to unlink them before you can make them inactive.

Accounts with subaccounts

If the account has subaccounts, you can’t make them inactive. To do so, you can move the subaccounts to a different account on your chart of accounts.

Banking accounts

To make a banking account inactive, you can disconnect it. QuickBooks won’t download new transactions, but your existing accounting data won't change.

1. Go to Settings ⚙, and select Chart of accounts.
2. Select the settings icon ⚙ in the Chart of accounts section.
3. Select the Include inactive checkbox.

Note: When you run reports, you’ll still see inactive accounts and their transactions. You can customise reports to hide inactive accounts, but this may affect accuracy.

1. Go to Settings ⚙, and select Chart of accounts.
2. Select the Settings ⚙ icon in the Chart of accounts section.
3. Select the Include inactive checkbox.
4. Find the account you want to make active.
5. Select Make active from the Action column.

Note: QuickBooks won't bring back transactions or redo journal entries after you make an account active again.