If I de-activate an account that has transactions from previous years but that we do not intend ever adding more transactions to, what are the consequences of doing this?

Hello there, @ccf2. I'd like to ask what account you are trying to deactivate. I'll share information about what happens if you deactivate your QuickBooks Online (QBO) and an account in your Chart of Accounts (COA).

After deactivating an account in your COA, their historical data and transactions will still be visible in your reports for accurate book tracking.

If you're referring to deactivating your QuickBooks Online (QBO) account, your data will remain in a read-only state within one year unless you choose to reactivate it. After a year, the data will be deleted and no longer be accessible.

You can visit this article for more information about it: Cancel your QuickBooks Online subscription or trial.

I'll also add this article to guide you in personalizing your reports according to your business needs: Customise reports in QuickBooks Online.

The Community is always available if you have additional questions about deactivating accounts. We'll assist you as soon as possible. Have a good one, and keep safe always.

We are talking about Accounts from our Chart of Accounts. We are not talking about our subscription with QuickBooks. If we make an account from our Chart of Accounts "Inactive", how does that affect our Reports?

Inactive accounts in QuickBooks Online can affect reports by appearing in historical data, ccf2. Allow me to provide further details.

Deactivating accounts in QuickBooks Online are not visible in your daily list of active accounts, but they do not disappear entirely. They continue to appear in several key areas to maintain accurate financial records.

For instance, if there's money left in an inactive account, it will show up on current financial statements like the balance sheet. They also remain visible in historical reports, providing a comprehensive view of past financial activities.

Additionally, this functionality helps when comparing financial data over different periods or revising budget reports where these accounts were previously involved. This approach ensures that your financial history is preserved and accurate, even as you streamline your active accounts for easier day-to-day management.

To assist you in deactivating accounts in your chart of accounts, please refer to this article: Make an account inactive on your chart of accounts in QuickBooks Online.

Moreover, let me add this resource to help you modify your financial reports and organize them for future reference: Customise reports in QuickBooks Online.

We aim to make your QuickBooks journey hassle-free. If you have questions about inactivating accounts in your chart of accounts or any other inquiries, don't hesitate to reach out. We are always ready to assist.