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In QuickBooks, users should keep the chart of accounts simple and organized. There is a feature in QuickBooks to make an account inactive if the account is not in use anymore. QuickBooks accounting Software offers an ultimate feature to turn the accounts inactive instead of deleting them, so you do not regret to lose the access to past transaction data for audit or reporting purpose.
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What is an Exact Process to Delete the Chart of Accounts in QuickBooks?
Once you are done with a particular account use and do not need it in the future, you can delete it from the record. Do understand that there is an optimum way that can aid you remove the QuickBooks accounts in a myriad of ways. Firstly, you can remove the account directly from the Chart of Accounts. However, if you are unable to get the delete option then make the accounts inactive. You can batch delete the accounts the moment you need it.
All You Need to be Aware Before Making Your Account Inactive?
- You can only merge the account and there is no way to delete the account permanently.
- Transactions allied to any deactivated account stay intact. Also, deactivating your account does not delete your data.
- There is no way that the user cannot edit the transaction linked with an inactive account. To edit/delete the transaction, you are suggested to restore the account first, after that navigate to the register and remove the individual entry. Post that, analyze the account and rectify it to a zero balance prior deactivating it.
- Prior making a balance sheet account inactive, rectify the balance to zero. If the balance is not zero, QuickBooks Online performs an automatic registration to reset the non-zero balance of the inactive account. The automatic entry posts to the Opening Balance Equity account, which is the equivalent of posting to the past years. The entry could potentially result in incorrect tax information being stored.
How to Setting up the Account Numbers in Accounts?
You can set up account numbers for the accounts, so you can easily identify the account type: if they are an asset, liability, or equity account.
Kindly know that QuickBooks accounting software does not assign the account numbers to accounts you add. Instead, you assign account numbers when you create or edit the own accounts.
QuickBooks Desktop for Windows
- In the first step, you are required to navigate to the Edit menu, then choose Preferences.
- After that, choose Accounting and choose the Company Preferences tab.
- Now, choose the Use account numbers checkbox.
- If there are subaccounts available, so in this step you need to choose the Show the lowest subaccount only checkbox and now, choose OK.
QuickBooks Desktop for Mac
- In the first step, you are required to navigate to the QuickBooks menu, and after that choose the Preferences.
- Now, you need to choose the Transactions.
- After that, choose the Use account numbers checkbox.
- Once it’s done now if you have subaccounts, choose the Show the lowest subaccount only checkbox. This shortens the subaccount details when you use it in the transactions.
How to Add the Account in QuickBooks Accounting Software?
There is feature available in QuickBooks accounting software that if you are required to track other types of transactions. Here are different account types you can add to the QuickBooks Chart of Accounts.
QuickBooks Desktop for Windows
- In the first step, you are required to navigate to the Lists menu, then choose the Chart of Accounts.
- After that you need to select the NEW option from the Account dropdown.
- Now, choose the account type, and after that, choose Continue.
- In the next step, complete the account details.
- Now, choose Save & Close.
QuickBooks Desktop for Mac
- In the first step, navigate to the Lists menu, then choose the Chart of Accounts.
- After that, select Create + and then select the account type from the dropdown.
- Now, you need to fill the account details and choose OK.
How to Add the Subaccount in QuickBooks Accounting Software?
To have the record of the particular accounts you can add the subaccounts under a parent or main account. For example, the utility account has subaccounts for various utility expenses like gas, telephone, and water.
Kindly know that the main account and subaccount should be the same category type.
QuickBooks Desktop for Windows
- In the first step, navigate to the Lists menu, and after that choose the Chart of Accounts.
- After that select NEW from the account dropdown.
- Now, choose the account type, then choose to Continue.
- After that, you are required to enter the account details.
- Now, choose the Subaccount of checkbox.
- Post that, you need to choose the main account from the Subaccount dropdown and choose Save & Close.
QuickBooks Desktop for Mac
- In the first step, you are required to navigate to the Lists menu, then choose Chart of Accounts.
- After that, select the + option.
- Now in this step, choose the account type from the type dropdown.
- Now here it’s required to fill the required accounting details.
- In this step, choose the Subaccount of checkbox.
- Here you need to choose the main account from the Subaccount dropdown.
- And lastly, select OK.
How to Edit an Account in QuickBooks?
If required you can also update an account type, account number, description, and tax-line mapping.
QuickBooks Desktop for Windows
- In the first step, you are required to navigate to the Lists menu, then choose the Chart of Accounts.
- Now, lick on the account which is required to edit.
- After that, choose the Edit Account.
- Now, you need to update the account details.
- Choose the Save & Close.
QuickBooks Desktop for Mac
- Firstly, navigate to the Lists menu, and after that choose the Chart of Accounts.
- Now, choose the account you wish to edit and choose the edit option.
- And finally update the account details and choose OK.
How to Delete an Account in QuickBooks?
You can delete an account if you no longer use it, so you can keep the Chart of Accounts organized.
This is important to know that the delete option will be available if you don’t have the subaccount. If you have the subaccounts then you are required to move them to another main account first. Also, you cannot delete the account instead you can only make it inactive in the chart of account.
QuickBooks Desktop for Windows
- Firstly, you are required to navigate to the Lists menu, then choose Chart of Accounts.
- Now, choose the account you wish to edit and choose the edit option.
- And finally, choose to delete Account, then select OK.
QuickBooks Desktop for Mac
- Firstly, you are required to navigate to the Lists menu, then choose Chart of Accounts.
- Now, choose the account you wish to edit and choose the edit option.
- Now, you need to go to the edit menu, then choose Delete Account.
- And finally choose the OK option.
How to Make an Account Inactive in QuickBooks
You can make an account inactive if you cannot delete it.
Kindly know that the accounts which are inactive will still appear in the reports so make sure they are accurate.
QuickBooks Desktop for Windows
- Firstly, you are required to navigate to the Lists menu, then choose Chart of Accounts.
- Now, choose the account you wish to make active and choose the edit option.
- After that, choose the account is inactive checkbox.
- And in the final step you need to choose the Save & Close option.
You can make the account active if you are ready to use the account again.
- Firstly, you are required to navigate to the Lists menu, then choose Chart of Accounts.
- After that, choose the Include inactive checkbox.
- Now, right-click on the account you wish to make active again, after that choose the edit Account.
- Now, you need to clear the Account is inactive checkbox and choose Save & Close.
QuickBooks Desktop for Mac
- Firstly, you are required to navigate to the Lists menu, then choose Chart of Accounts
- Now, choose the account which is required to make inactive.
- After that, go to Settings –>choose Make Account Inactive.
You can make the account active if you are ready to use the account again.
- Firstly, you are required to navigate to the Lists menu, then choose Chart of Accounts.
- After that, select All Accounts in the available dropdown.
- Now, right-click on the account you wish to make active again, after that choose the edit Account.
- And finally got to Settings –>then select Make Account Active.
Here are few important steps given which users need to adhere prior deleting the QuickBooks Accounts
- If you need to delete the income account which has pending charges then you are required to send an invoice to the customer for billable expenses, charges, or time. Only after doing that, you will be able to delete the account.
- You cannot delete the accounts with a subaccount so those accounts that have subaccounts should be moved to another account on the Chart of Accounts.
- If the recurring transactions are connected with the account then you should unlink them from the account.
QuickBooks users delete the accounts when account is no longer required. However, users should be informed about the QuickBooks default account not needs to be deleted. With this article we have assisted the users on how to delete chart of accounts in QuickBooks Online and Desktop for Windows and Mac users. By having the correct information, you can proceed to the account deletion in QuickBooks Accounting Software. However, if you need further assistance please do not hesitate to get in touch with our Dancing Numbers team of experts at our LIVE CHAT option. Our team of professionals will be glad to assist you.
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