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Frequent Contributor *

When is it okay to inactive an account?

I would like to know if an account in the COA that has not been used in a year, if it is okay to deactivate it?  I did so once, and the accountant said I couldn't.
2 Comments
QuickBooks Team

Re: When is it okay to inactive an account?

Hi there, @ATOZOOK.

 

It's nice to see you again here in the Community. Allow me to help share some information about deactivating a bank account in your Chart of Accounts.

 

If you've used the bank account for some of your transactions, you'll have the option to make your account inactive. However, inactivating an account will change your balance.

 

To do that:

  1. Select the Gear icon on the Toolbar.
  2. Under Your Company, choose Chart of Accounts.
  3. Find the account you want to delete.
  4. Select the drop-down in the Action column, then choose Make Inactive.
  5. Select Yes to confirm.

To restore an inactive account:

  1. Select the Gear icon on the Toolbar.
  2. Under Your Company, choose Chart of Accounts.
  3. Above the Action column, select the small gear icon, then check Include inactive.
  4. Find the account you want to make active again.
  5. Select Make active.

For more details about this process, you may read through this link: How to deactivate an account or restore a deactivated account.

 

Also, to learn more about dealing with accounts that are no longer use in QuickBooks Online, please refer to these articles:

In case you need further assistance with this process, feel free to get in touch with our Customer Care Team

 

This information should get you going today.

 

Please let me know if you have any other concerns with deactivating an account in QuickBooks Online. I'd be pleased to help you out. Have a good one.

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Re: When is it okay to inactive an account?


@BettyJaneB wrote:

Hi there, @ATOZOOK.

 

Inactivating an account ensures that your transactions are intact and reports will not be changed.  

 


Wrong.  Reports ARE changed if you inactivate a balance sheet account with a balance.  An adjusting transaction is created that zeroes out the balance and moves it to the Opening Balance Equity account which changes the balance sheet and is wrong.  You should never inactivate a balance sheet account with a balance. 

" You can also restore all your inactive accounts anytime you want."

Restoring an inactive balance sheet account that had a balance does not reinstate the balance.

P&L accounts can safely be inactivated

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