How to Close a Bank Account in QuickBooks
By Tara Kimball
Your QuickBooks chart of accounts contains every account your business uses, including your bank accounts, expense and asset accounts. If you change bank accounts, you need to remove the old bank account from your chart of accounts to prevent confusion. QuickBooks will not allow you to remove an account that has activity in it, but you can flag the account as inactive to remove it from your chart of accounts while keeping all the transactions in the account history secure and your books accurate.
Enter the account register for the account you want to remove. Verify that the account balance is zero, or enter the final transaction to record what you did with the remaining balance in the account. This is important for proper accounting of your business funds.
Enter the Chart of Accounts. Click the “Accounts” menu in the upper menu bar on your QuickBooks main page. Select “Chart of Accounts” to display the chart of accounts for your company file.
Click the account you want to deactivate to highlight the account. Click the “Edit” menu in the upper menu bar. Select “Make Inactive” in the Edit menu. The account will still appear in reporting for periods when there was activity, but it will not appear as accessible in normal account management unless you make it an active account again.
Tara Kimball is a former accounting professional with more than 10 years of experience in corporate finance and small business accounting. She has also worked in desktop support and network management. Her articles have appeared in various online publications.