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Closing out a bank account in QBO
The owner of this company would like to remove a bank account from her list of accounts. The account has a balance in it. Should I do a JE from cash to Owners Equity and make the account inactive?
Thanks for posting here in the Community, @vanidosa369. I'll provide some insights about making an account inactive in QuickBooks Online (QBO).
Yes, you can generate a journal entry to handle the balance of their bank account since you cannot directly make it inactive if there is still a balance on it. Otherwise, QBO makes an automatic adjustment entry to zero out 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 previous years.
Furthermore, I'd still recommend seeking assistance from your accountant to ensure that your books are accurate and to avoid messing up the data. They'll also be able to guide you on choosing the right accounts and other ways to record this better.
Also, make sure to reconcile your accounts in QBO every month to confirm that they are balanced and authentic.
I'm always around to lend a hand if you need more help managing your accounts or anything else related to QuickBooks. Have a good one!
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