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FreedomAsSeen
April 20, 2024
Question

QBO QB Checking account that is not active, but has transactions linked to it

  • April 20, 2024
  • 1 reply
  • 0 views

The client's CoA has a bank account called QuickBook Checking account. But they do not have this account.

Their previous bookkeeper set this account up for their payroll. I did not notice this before reconciling the past year.

I have manually entered the names to the bank feed, but I still have this account with a very large debt to it.

What is the correct method to close this account and make it inactive?

Is it best to make a journal entry for the account? It is IRS and payroll entries for the past year. 

Or is there a way to link these to the official bank feed?

Thanks for your help.

1 reply

L
LouiseG12
April 20, 2024

I'm here to help you sort out your Chart of Accounts (COA), FreedomAsSeen.

 

When inactivating your Checking account in QuickBooks Online (QBO), the system will automatically create a journal entry for the balance of your Checking account and move the balance to the other account, ensuring that your books are balanced. Please note that after inactivating it, the transactions will still be visible but the account will show a zero balance. 

 

To make your Checking account inactive, here's how:

 

  1. Go to the Gear icon and select Chart of accounts.
  2. Find the account you want to inactive.
  3. Select the Action dropdown and select Yes, make inactive.

 

You can read this article for more details: Make an account inactive on your chart of accounts in QuickBooks Online.

 

In case you want to organize your finances better, you can create a subaccount to track your income, expenses, and other account types. Check out this article: Create subaccounts in your chart of accounts in QuickBooks Online.

 

Know that you can always get back to this page if you need additional assistance in organizing your financial records. We'll be right right here to assist anytime. 

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