How to Merge Accounts in QuickBooks Online

Merging duplicate accounts in QuickBooks Online can help you maintain organized financial records. This process allows you to consolidate multiple accounts into a single entity. When you merge, all data from the duplicate account transfers to the one you intend to keep, and the duplicate account is deactivated. Here’s how to do it properly.

Important Considerations Before Merging

• Irreversibility: Once you merge accounts, you cannot undo this action. You need to be sure you are merging the correct accounts, as the process cannot be reversed.
• Reconciliation Reports: If either account has reconciliation reports, save them first. The merged account may not retain the reconciliation history, which could be important for your financial records.
• Account Types: Only accounts of the same type can be merged. For instance, two expense accounts can be merged, but an expense account cannot be merged with an income account.
• Subaccounts: If you are merging subaccounts, they must have the same parent account. This requirement is crucial for a seamless merging process.

Steps to Merge Accounts in QuickBooks Online

1. Access the Chart of Accounts: Click on the Gear icon in the upper right corner of the screen and select Chart of Accounts from the dropdown menu.

2. Identify the Account to Keep: Locate the account you want to retain. Click the Edit option in the Action column. Take note of the account's name, type, and detail type. If it is a subaccount, ensure you also note the parent account.

3. Edit the Duplicate Account: Go back to the Chart of Accounts. Find the duplicate account you wish to merge with the one you intend to keep. Click the Edit option in the Action column for this account. Change the account name and detail type to match the account that you are retaining. If it’s a subaccount, make sure it matches the parent account of the account you want to keep.

4. Merge the Accounts: After editing the duplicate account, click Save. QuickBooks will prompt you, asking if you want to merge the two accounts. Confirm your choice by clicking Yes.

After completing these steps, all transactions from the duplicate account will transfer to the account you are keeping. QuickBooks will then deactivate the duplicate account.

Additional Tips

• Backup Data: Before merging accounts, consider exporting important financial data as a precaution. This step is wise, especially if any unexpected issues arise during the merging process.
• Handling Errors: Occasionally, you might encounter errors during the merge. If this happens, one workaround is to temporarily rename the account you want to keep to match the name of the duplicate account. After changing the name, proceed with the merge. Once complete, you can rename the merged account back to your preferred name.
• Reconciled Accounts: If you are merging reconciled accounts, keep in mind that this may affect your reconciliation reports. Understand what this means for your financial tracking and save necessary reconciliation reports before proceeding with the merge.

By following these steps and keeping the considerations in mind, you can effectively merge duplicate accounts in QuickBooks Online. This practice helps you enjoy more streamlined and accurate financial records, which are essential for effective business management.