Reset chart of accounts and start from clean slate

Let me share a few details with your QuickBooks chart of accounts so you'll know the closest option on how to handle your issue, Matteo.

The chart of accounts provides an overview of your business and how the different financial parts are performing. When you create your company file, QuickBooks Online (QBO) automatically sets up standard accounts and gives you additional ones based on your business entity. Keeping them organized will help you especially when it's time to file your taxes.

Currently, inactivating accounts is the only option that you can do instead of deleting them. However, you can still add more accounts anytime if you need to track other types of transactions. To do so, follow the outlined steps below:

1. 1. Go to Settings ⚙ and select Chart of accounts.
   2. Select New. Depending on your account view, you’ll either see a panel labeled New account or New category. Select the option you see below for next steps.
   
   

To learn more about the next process when creating a new account, you may want to check this out for guidance: Add An Account To Your Chart Of Accounts In QuickBooks Online.

Furthermore, consider reading this article to know how to review and categorize transactions once downloaded from your bank: Categorize Online Bank Transactions In QuickBooks Online.

You can always post your reply below if you have additional questions about the chart of accounts. We're here to get you covered. 

Hi, thanks for your answer

I just created the company so it's not an issue to purge it and start from zero, is there a way to avoid quickbooks creating any accounts after the purging process?

Hi, thanks for your reply.

The account was just created so we have no problem purging it and starting from zero.

Is there a way to avoid QBs creating default accounts after the purging?

Otherwise, could you reccomend how to have it create as few accounts as possible?

Thanks

Thanks for getting back with the Community, Matteo_S.

When you create your company in QuickBooks, some default accounts are created in the Chart of accounts. The ones created for you will depend on which business entity you selected. Other special accounts will also be created when certain actions are taken or features are activated.

Some of these default accounts can't be changed or deactivated.

Here's the accounts that can be deleted by merging:
 

• Markup - This account tracks differences between your cost of a product/service and the price you sell it for.
• Billable Expense Income - This account tracks money your business gets from customers to cover expenses for their services.

Here's the accounts that can be edited, but not deactivated or merged:
 

• Uncategorized Asset - This account records any asset that can't be matched to an account.
• Uncategorized Expense and Uncategorized Income - These accounts are created automatically and track money your business earned or spends that still needs to be categorized.
• Owner's Equity (also called Owner Draws, Owner's Investment, or Owner's Pay & Personal Expense) - This account represents the cash or assets you've invested in your company.
• Services - This is the default income account. It functions in the same way as other income accounts, but neither it nor the corresponding product/service item can be deleted. You can however edit names of both to reflect your main income type.

Here's the accounts that can't be deactivated:
 

• Undeposited Funds (also called Payments to Deposit) - This is used when you record a payment to your company. The funds are added to it until you deposit them into your bank account.
• Opening Balance Equity - This is a default account for adjustments. You can only edit its name.
• Inventory/Stock Asset and Cost of Goods Sold/Cost of Sales - If you try to edit or deactivate these accounts, any changes to your products/services will recreate them.
• Retained Earnings - This account reports the net income of your company on the Balance Sheet report. You can edit its name if necessary.
• QuickBooks Checking - This account is created when you're approved for a QuickBooks Checking account.
• (Sales tax agency name) Payable - This account is created if you set up sales taxes for a tax agency. It reports your tax for each transaction.
• Unapplied Cash Payment Income - This account is created if you record a cash payment from a customer without applying it to a sales form, such as an invoice.
• Reconcile/Reconciliation Discrepancies - This account is created if you reconcile and account and its transactions don't match the transactions reported on your bank statement.
• Sales of Product Income - This is used to track sales for inventory items. If it's deleted or renamed, QuickBooks will create a new account in its place.

If you'd still like to purge your account data and start over, you can refer to the steps in our Delete your data & start over article.

I've also included a detailed resource about working with the Chart of accounts screen which may come in handy moving forward: Manage default & special accounts

Please feel welcome to send a reply if there's any additional questions. Have a wonderful Friday!

Intuit has way too many accounts in the standard Chart of Accounts.

Our business has been running for over 60years and we know exactly which accounts we want to use to streamline our accounting system. It is unfortunate that QBO has to set up so many and that they can only be deactivated or renamed. I would like to set up my own COA with only the accounts that pertain to my business. For example, my company is a non-profit. Therefore, there is no owner. Owner draws and owner investments are irrelevant. It would be nice if Intuit had an accountant set up just the very fewest accounts possible to function. Then we could re-name them, add to them, etc to have a much cleaner financial report.

Hi there, Breeeze.

I know how important it is to customize your Chart of Accounts (COA) to include only those accounts relevant to your business. When you set up your company in QuickBooks Online (QBO), some default accounts are automatically created. If there are any accounts that don’t apply to your business, you can temporarily make them inactive. 

We recognize that each company has unique needs, and I know how the feature you're looking for would benefit and empower your business. Here at Intuit, our goal is to address the needs of every QuickBooks user around the globe and ensure you get the best experience possible. While we work on enhancing our services, I recommend that you share your request directly with our product team through feedback, as it helps us improve our features.

To provide feedback, just follow these steps:

1. Go to the Gear icon at the top.
2. Select Feedback.
3. Enter your comments or product suggestions. 
4. Then select Next to submit feedback.

For updates on the latest and upcoming changes to QuickBooks products, check out this link: QuickBooks New Features and Innovations.

If you need further assistance in managing your Chart of accounts, feel free to let me know by commenting below. I'm here to help with any questions you may have, Breeeze.