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

by Intuit1130 Updated a day ago

Learn how to make accounts inactive from your chart of accounts.

Keep your chart of accounts simple and organized. QuickBooks Online lets you deactivate accounts instead of deleting them, which helps to access past transaction data for reporting purposes.

Note: If you are looking to make a banking account inactive, it's better to disconnect it. Then, QuickBooks stops downloading new transactions, but your existing accounting data won't change.

For a better experience, open this article in QuickBooks Online. Launch side-by-side view Open this link in a new window

Prerequisites

Before inactivating a balance sheet account, make sure its balance is zero. If it isn’t, QuickBooks Online will create an automatic adjustment entry to zero it out. This automatic entry is added to the Opening Balance Equity account. This can affect past-year balances and cause wrong tax reporting.

What to know before making an account inactive

  • You cannot permanently delete an account, except for merging one account into another.
  • Making an account inactive doesn't remove its transactions. Transactions associated with any deactivated (deleted) account stay intact.
  • You can't edit a transaction associated with an inactive account. To edit or delete the transaction, you must restore the account first. Then, go to the register and delete the individual entry. After that, analyze the account and correct it to a zero balance before deactivating it.

Make an account inactive to delete it

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.

  • If you've never used an account or its balance is $0, you can easily make it inactive. Since accounts rely on each other to stay balanced, deleting data from one affects everything else.
  • If you make an account with a balance inactive, QuickBooks creates a journal entry. This moves the remaining balance to another account. Your existing transactions don't disappear and stay on your financial reports. However, if you decide to use the account again, QuickBooks won't move the balance back or change the journal entry.

Important: Certain accounts in QuickBooks can’t be deleted because they are default accounts.

Some accounts require extra steps before you can make them inactive:

Make an account inactive:

  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.

See inactive accounts

When you run reports, you’ll still see inactive accounts and their transactions. QuickBooksincludes them to keep everything accurate. You can customize some reports to hide inactive accounts, but this may affect accuracy.

If you want to see your inactive accounts in your chart of accounts:

  1. Select Settings ⚙, then select Chart of accounts.
  2. Next to the printer icon, select the Settings ⚙ icon.
  3. Select the Include inactive checkbox.
  1. Go to Settings ⚙, then select Chart of accounts.
  2. Select the Gear icon ⚙ next to the printer icon.
  3. Select Include inactive.
  4. Find the account you want to use again.
  5. Select Make active.

Keep in mind, QuickBooks won't add transactions back to the account or edit any journal entries it made to balance your accounts.

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