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T
ttloper5
August 31, 2022
Question

Inactive Bank Account

  • August 31, 2022
  • 1 reply
  • 0 views

A client I have does not close out the books at all,  I'm not even sure what reports she gave to her CPA to complete taxes for last year.  The CPA made mistakes on her taxes and so she doesn't want me to touch the entries from last year.  If i make the bank account inactive and create a new bank account with the same number can I then use the year end bank balance to start over for this year? 

1 reply

M
Mark_R
August 31, 2022

It's good to see you here in the Community, @ttloper5.

 

I'll share some information about inactivating a bank account and using its bank balance to start over.

 

Yes, you can create a new bank account with the same number and use the year-end bank balance to start over. However, you'll want to know when you make an account with a balance inactive, QuickBooks creates a journal entry. And this moves the remaining balance to another account. But your existing transactions don't disappear and stay on your financial reports. 

 

If you aren't sure about inactivating a bank account with a balance, I suggest seeking help from your accountant. This way, they can help ensure this change is right for the business.

 

When you're ready to reconcile your bank account, you can check out this article for the detailed steps and information: Reconcile an account in QuickBooks Online. This will help make sure your QuickBooks transactions match your bank statement.

 

Our Community forum is always open to help you again if you have any other questions with QuickBooks. Have a great day ahead.

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