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Hvac72
February 21, 2023
Question

Making GL account inactive on Quickbooks online

  • February 21, 2023
  • 1 reply
  • 0 views

What happens to the history when you make an account inactive in Quickbooks online?  I have a serious problem with our Simple IRA Employer Match account, which occurred when we migrated from QB desktop to QB online. The Balance Sheet is showing an incorrect liability.  I was told to make the account inactive, but want to make sure I'm not creating a bigger problem that can't be fixed. 

1 reply

A
Alex M
February 21, 2023

Hi there Hvac72,

 

It's important that all your accounts are correctly entered so that your books can be well balanced. QuickBooks Online is a great tool able to help you manage your books so that your account balances can be accurate. I can point you in the right direction for assistance with your account balances.

 

When making an account from the balance sheet inactive, if there is a balance in the account, the balance of the account will be sent to the Opening balance equity account type. If you're not wanting that amount to go to that account, then you'd need to do a journal entry to send the balance to the account you wish before making it inactive. To know which account or accounts should receive the money from this account, I recommend speaking to your accountant. Their expertise will be able to analyze your books with you in order to know the correct movement of money in the account. If you'd like to invite your accountant to QuickBooks so they can see your books, you can do so by going to the My accountant tab. You can also find an accountant that has experience using QuickBooks by clicking on the Find a pro to help option found in that section.

 

If you have any other questions, feel free to reach out here.

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