How to Delete an Account in QuickBooks Online?

QuickBooks Online offers multiple options for managing your accounts, including deletion and inactivation. This guide explores the differences between these options and provides step-by-step instructions for each method.

Understanding Your Options

QuickBooks Online provides two primary methods for removing an account from active use:

1. Deleting the account from the Chart of Accounts permanently
2. Making the account inactive while retaining it in your QuickBooks system

Each option has distinct implications for your accounting data and future accessibility.

Deletion vs. Inactivation: Key Differences

Deleting an account permanently removes it from your Chart of Accounts. This action affects all connected accounts and deletes related data. In contrast, inactivating an account treats it as deleted without removing it entirely. QuickBooks hides inactive accounts from transactions, lists, and menus, but retains them for historical reporting purposes.

Steps to Delete or Inactivate an Account in QuickBooks Online

Option 1: Disconnecting an Account

Disconnecting an account is a reversible process that stops QuickBooks from downloading new transactions.

1. Access QuickBooks Online
2. Navigate to the Banking or Transaction menu
3. Select the Banking tab
4. Click on the tile for the bank account you wish to disconnect
5. Choose “Edit account info“
6. Check the box labeled “Disconnect this account on Save“

• If this option is unavailable, wait for QuickBooks to finish downloading transactions

1. Click “Save and Close“

Note: Reconnecting the account later will trigger a re-download of transactions.

Option 2: Making an Account Inactive

Inactivating an account hides it from view while preserving historical data.

Important: Consult your accountant before inactivating an account, as this action can have significant implications for your financial records.

Preparatory Steps for Specific Account Types

Before inactivating certain accounts, complete these steps:

• Income Accounts with Pending Charges: Invoice customers for outstanding time, charges, or billable expenses
• Accounts with Sub-accounts: Relocate sub-accounts to another account in your Chart of Accounts
• Accounts with Linked Recurring Transactions: Unlink these transactions
• Accounts Linked to Products and Services: Change the linked account or inactivate the associated products and services

Inactivation Process

1. Click the gear icon (Settings) in QuickBooks Online
2. Select “Chart of Accounts“
3. Locate the account you wish to inactivate
4. Click “Action” next to the account
5. Choose “Make inactive“

The account will now be hidden from transactions and menus.

Managing Inactive Accounts

Viewing Inactive Accounts

Inactive accounts remain visible in reports to maintain accuracy. To see inactive accounts:

1. Access Settings (gear icon)
2. Select “Chart of Accounts“
3. Click the gear icon at the top of the list
4. Check the “Include inactive” box

Reactivating an Account

To make an inactive account active again:

1. Follow steps 1-4 from “Viewing Inactive Accounts“
2. Locate the account you want to reactivate
3. Click “Make Active” in the Action column

Note: Reactivation does not restore previous transactions or edit any journal entries made to balance accounts.

Customizing Reports to Handle Inactive Accounts

You can customize reports to hide or show inactive accounts:

1. Run the desired report
2. Click “Customize“
3. Apply filters as needed
4. Click “Save customization” to preserve your settings

Key Considerations

• Default accounts used by QuickBooks for core features cannot be deleted
• Deleting an account is permanent and affects related transactions
• Inactivating an account preserves historical data while hiding it from current use
• Always consult with your accountant before making significant changes to your Chart of Accounts

So you get to know about the two ways to delete an account in QuickBooks online. You have to select a way to do it according to you. All the steps are also mentioned so that you can do it properly. If you have any doubts or have any other problems then connect with the Dancing Numbers helpdesk.

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