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I have closed a bank account. How do I remove it from being a choice to receive a payment to?

Forum|Forum|4 years ago
May 6, 2022
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QuickBooks Online

Best answer by SarahannC

a bit of background information....

1) the account was closed at the institution

2) the account is showing a Quickbooks Bank Balance in the COA

3) the account is showing a ZERO Bank Balance in the COA

4) I get a warning everytime I try to make the account inactive

Thanks for the additional details, Baker550.

First, I'd like to inform that making an account inactive from the Chart of Accounts (COA) doesn't mean deleted. It only indicates not in use and removes the account from the account lists.

When trying to inactive an account, can share the exact pop up or message you received? I want to make sure you'll get the correct information and resolution on this.

When an account is inactivated, QuickBooks makes a journal entry since it shows a balance. This transfers the balance to another account. Your existing transactions don't disappear and remain on your financial statement.

Still, I recommend following the steps shared by my colleague above. You can also reach out to your accountant to ensure everything is accurate before proceeding the process. You'll want to review the links below for further details and tips about handling accounts:

Please let us know if you need additional help. We'll be right here to assist you, Baker550.

RenjolynC

Hello, Baker550.

I want to make sure we're on the same page. Are you referring to removing a bank account listed in the Chart of Accounts? Is the account connected to the online banking? If so, you have the option to disconnect it. Doing so helps QuickBooks to stop downloading new transactions, and keep your existing accounting data.

If you decide to make the account inactive, please check the following details before you proceed:

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 be able to successfully edit/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.
Before making a balance sheet account inactive, correct the balance to zero. If the balance is not zero, QuickBooks Online 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. The entry could potentially cause incorrect tax info to be filed.

We also recommend reaching out to your accountant to make sure this change is right for you. If you're not affiliated with one, you can visit our Intuit Find-A-ProAdvisor site to find certified professionals near you.

When you're ready to make an account inactive, you can follow these steps:

Go to the Gear > Chart of accounts.
Find the account you want to delete.
Under the Action column, click the drop-down arrow next to the View register link.
Select Make inactive and hit Yes to confirm.

For reference, please check out this article: Make an account inactive on your chart of accounts in QuickBooks Online.

If you're referring to something else, please let me know by adding more details in your reply. I'll be around to help you out some more. Take care!