Should an account be inactivated if it is irrelevant to the business?

Hello there, @kochumai.

When an account (balance sheet) is used infrequently, you're able to inactivate it in QuickBooks Online (QBO). This way, you can keep your Chart of Accounts (COA) simple and organized. However, before that, please know that the system hides inactive accounts from lists and menus, but keeps past transactions on your reports.

Some accounts require extra steps before you can make them inactive. Please refer to the following info before making an account inactive in QBO:

• If products or services use the account, change the account they're linked to.
• If recurring transactions are linked to the account, you need to unlink them from the account.
• If the account has subaccounts, move them to a different account on your chart of accounts.

Whenever you're ready, here's how

1. Go to the Gear icon.
2. Select Chart of accounts.
3. Find the account you want to inactivate.
4. Select the Action drop-down and select Make inactive. Please see the attached screenshot below for your reference.
5. Click Yes to confirm.

You can learn more about inactivating accounts through this article: Accounts on your Chart of Accounts in QuickBooks Online. It also includes details about activating an account again.

Also, there are accounts in your COA that can't be inactivated, deleted, edited, or merged. These accounts are the default or special ones that are created when certain features are turned on. You can learn more about this by checking out this article: Manage default and special accounts in your chart of accounts.

Let me know if you have other concerns about managing accounts in QBO. I'm just around to help. Take care always.