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info-oncallnotar
February 19, 2022
Question

Negative balance after making bank account inactive. help!

  • February 19, 2022
  • 1 reply
  • 0 views
This account has a non-zero balance. Inactivating this account will cause an adjusting transaction to be created. Is this OK? I added the wrong bank account and when I removed it, my account has a negative balance of 7k.

1 reply

M
mv32
February 19, 2022

Welcome to QuickBooks Community, @info-oncallnotar.

 

Let me share some insights about deactivating a bank account in QuickBooks Online.

 

You're correct that inactivating the bank account will create an adjusting entry to zero out the balance. While this will leave the taxes incorrect, in this case, I suggest consulting an accountant for further advice about creating adjusting entries to know which accounts to use when clearing out the -7,000 balance.

 

In addition, make sure to disconnect the bank account if it's connected to your online banking before making it inactive. This way, QuickBooks stops downloading new transactions to the system while existing accounting data won't change. That said, all accounts will be in the report if there are transactions assigned to them.

 

You can take a look at this article for the complete details in making your bank account inactive: Make an account inactive on your chart of accounts in QuickBooks Online. 

 

I'm also adding this reference to check information about how Chart of accounts organizes your transactions: Understand the chart of accounts in QuickBooks.

 

I'm here to help anytime. If you have other questions regarding the Chart of accounts and banking feature, let me hear things by this thread. Have a pleasant day ahead.

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