How to Delete or Disconnect a Bank Account in QuickBooks Online

Managing bank accounts in QuickBooks Online (QBO) can be straightforward, but you must know the difference between disconnecting an account and deleting it. Each action has its own consequences on your financial records.

Disconnecting a Bank Account

When you disconnect a bank account in QBO, you stop the program from importing new transactions from that account. However, the account and all its existing transactions remain accessible in your records. This is useful when you want to temporarily halt automatic updates without losing any historical data.

Steps to Disconnect a Bank Account:

1. Go to the Banking or Transactions > Bank transactions menu.
2. Select the account you wish to disconnect.
3. Click the pencil icon next to the account name to edit.
4. In the Edit Account window, check the box labeled Disconnect this account on save.
5. Click Save and Close.

Once you complete these steps, QBO will no longer download new transactions for this account, but all existing data will stay intact.

Deleting (Making Inactive) a Bank Account

Deleting a bank account in QBO means making it inactive. This action removes the account from active use but does not erase it completely. The account and its transactions will be hidden but can be reactivated later if needed. This is helpful when you no longer want to use an account but may need to access its history.

Steps to Delete (Make Inactive) a Bank Account:

1. Go to the Accounting menu and select Chart of Accounts.
2. Locate the account you want to delete.
3. In the Action column, click the dropdown arrow and choose Make inactive.
4. Confirm your choice by clicking Yes.

Before you make an account inactive, be cautious. If the account has a non-zero balance, QBO will create an adjusting transaction. Also, any linked transactions will remain in your records, and you may need to correct journal entries and balances should you reactivate the account in the future.

Important Considerations

• Ensure all transactions in the For Review tab are categorized before disconnecting or deleting an account.
• Consult with an accounting professional if you are unsure about the implications of these actions to avoid unintended consequences.

Conclusion

Understanding the difference between disconnecting and deleting a bank account in QuickBooks Online is crucial. It allows you to manage your financial records effectively. Whether you need to stop new transactions or hide an account, knowing these processes ensures your bookkeeping remains accurate and up-to-date.