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Level 1

Nonprofit with equity account

By mistake, our nonprofit was set up with several 3000-series equity accounts (via journal entries.) They were loaded with starting balances that were not correct (there was no equity funding for them.) They have even had income and expense transactions posted against them over the last few years. How can we recategorize those transactions into their proper 4000 or 5000 accounts, zero out the starting balances, and delete/inactivate these erroneous equity accounts?


Nonprofit with equity account

Let's make sure to change the categories so they're reported under the correct accoount, Nonprofit-problem.

I'd also like to ask how are the transactions recorded? Are they entered as journal entries or any other types of transactions.


I'll also share the steps on how to recategorize the transactions and inactive the equity accounts as well. Here's how: 


  1. Go to the Reports menu and type in Transaction Detail by Account in the Search bar.
  2. Proceed to the Report Period section and change the dates when the journal entries were reported.
  3. Look for the 3000 series accounts, then click on each transaction to open the journal entries.
  4. If the transactions were entered as Checks, Invoices, or Sales receipts, follow the same steps on how to open clicking each one of them.
  5. Change the categories in the Account column.
  6. Click Save and close.


After recategorizing all of them, you can create another journal to zero out the starting balances. Here's how:


  1. Click the + New button and select Journal Entry.
  2. Enter the affected accounts in the Account columns.
  3. Type in the amounts. Make sure they're the same in both Credit and Debit columns.
  4. Select Save and new or Save and close.


Once done, you can now proceed to making the accounts inactive by following these steps:


  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.


Additional details and references are also provided in these articles: 



Don't hesitate to let me know if you're able to clear out the incorrect accounts. We'd love to help if you need it again. 

Level 1

Nonprofit with equity account

Thanks, Jeno. The transactions mis- categorized were for checks written and bank deposits made. The only journal entries for these equity accounts were to set up their opening balance.


Nonprofit with equity account

Thanks for getting back to us, Nonprofit.


To ensure we categorise the written checks and deposits, we need to open each transactions and change the account from there. See the sample screenshots below.



Once done, we can proceed with inactivating the accounts by following the steps provided by my peer above or by scanning through this article: Make an account inactive on your chart of accounts in QuickBooks Online.


To help us with organizing the chart of accounts, we can visit the resources below. These will provide us with tips about what accounts can't be deleted as well as activating account numbers:


Use account numbers in your chart of accounts

Manage default and special accounts in your chart of accounts


Please know that the Community is always here to help if you have any other account or bank transaction concerns, Nonprofit. I'll be right here to help. Have a good one!

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