Inactive Accounts in QuickBooks - How & Why

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Let me begin by stating that...

>>> Inactive accounts are a fact of life
in QuickBooks. <<<

Sometimes people want to delete an account, but accounts cannot be deleted if they contain transactions.

If the account was created in error, and if you are working in an open accounting period, plus the transactions are unreconciled, consider deleting the transactions and re-entering them again in a different register if they represent actual transactions.

Another option is to open the Write Checks screen, and scroll through the transactions, changing the account at the top of each of the transactions, from the wrong account to the right one. When the register is empty, QuickBooks will let you delete it from the Chart of Accounts.

You might be tempted to void the transactions, but this is probably not the best choice, and you still will not be able to delete the account.

Note: if you void transactions from a closed period that are also reconciled, contact me or another QuickBooks professional. This kind of problem is outside the scope of an internet article.

Best Choice:
Make the Accounts Inactive and Then Hide Them

If you realize that you can't delete the account, make it inactive and hide it.

1. Bring the account to a zero balance.

2. Go to the Chart of Accounts, highlight the account, right click, and select Make Account Inactive.

3. At the bottom of the Chart of Accounts, click the button that says Account. Select the option saying Hide Inactive Accounts. The account is now out of your view, and it retains the important information.

Final Thoughts

Sometimes people get stressed about inactive accounts, because they would rather delete them. But everybody’s QuickBooks file has them, or will have them. They are no big deal.

Related Pages:

Deleting Accounts in QuickBooks

Void a Transaction in QuickBooks

Delete a Transaction in QuickBooks

Reverse a Transaction in QuickBooks

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