Learn how to delete and restore an account in your chart of accounts in QuickBooks Online.
Why should you delete or mark accounts as inactive? New QuickBooks Online usage limits mean that your account may now have a limit to the number of accounts you can create.
But these limits don’t apply to accounts that are marked as inactive. Marking default QuickBooks Online accounts as inactive will not count toward your usage limit.
Deleting accounts that you no longer use will help clean up your chart of accounts and make navigating your chart of accounts easier.
What happens to deleted or inactive accounts?
When you delete an account (or an item in the products and services), then QuickBooks Online marks them as inactive and hides them from view.
Transactions will still be available, so you’ll need to remove those manually. And the accounts are still there, but they’re hidden from your view.
Products and services behave in the same way: inactive items are just hidden from view and can be restored if needed.
One thing to note: if you delete an account, create another account with the same name, and restore the inactive account, QuickBooks Online will automatically add an -1 to one of the accounts since no two accounts can share the same name.
Delete an account in your chart of accounts
To delete an account in your chart of accounts, click on Accounting.
Locate the account you want to delete and click on the dropdown arrow to mark the account as inactive.
You’d also remove any product or service in the same way. Navigate to Sales > Products and Services. Find the item you want to remove.
Click on the dropdown arrow and select Make inactive.
If the account is linked to a product or service, you’ll get an error message saying that the account is in use. You’ll need to change the account on your product or service before you can mark the account as inactive.
Find the associated product or service that the account is linked to. Click on Edit and select a different account.
Read our article to learn how to update accounts with historical transactions if you need to move transactions from one account to another.
Restore a deleted or inactive account in your chart of accounts
If you’ve accidentally deleted a product, service, or account, then you can easily restore them by making them visible and marking them as active.
You can change the settings to show inactive accounts by clicking on the gear icon and selecting Include inactive to show all accounts.
Click on Make active to reactivate the account.
If you want to restore a product or service that you’ve deleted, then the process is slightly different.
You’ll find the option to show Inactive under the funnel or filter icon instead of the gear icon.
Deleting and restoring an account in QuickBooks Online is a fairly simple process once you find the option to show inactive accounts.
And with the new QuickBooks Online usage limits, you’ll need to be more aware of not just the number of accounts you have, but also the number of classes and locations.
Mark discontinued products and services as inactive and clean up your chart of accounts by making unused accounts inactive as well.
Maintaining your accounts will reduce clutter and allow you to keep within your plan limits without having to upgrade to the next subscription tier.
Read other helpful QuickBooks Online guides below: