Unfortunately, you cannot make an account inactive in QuickBooks Online. In your Chart of Accounts (CofA) List, you can edit the account to change the account type. However, the only available account types are income, expense, other income, other expense, asset and liability.
If you have an account that you do not need to use, you can hide it from your lists by making it non-posting. However, the account will still be visible on reports, and you will be able to use it as part of reconciliation once you want to make it active again.
If you want to track which inactive accounts you have, you can categorize them using classes. This way, you can easily recognize whether an account is active or inactive in your CofA list. Alternatively, you can create a new account with the same name and type, that you can use to replace the inactive account when you want to start using it again.
It is important to remember that, when you delete or make an account inactive in QuickBooks Online, you will also delete any linked transactions and you will not be able to recover them. To ensure that this does not happen, you should check for any linked transactions before making an account inactive.
Additionally, it is also important to note that changes to the name, description or type of an account will not automatically update linked transactions; you will have to manually update them afterwards.
Which 2 accounts Cannot be merged or made inactive in QuickBooks online?
Two accounts that cannot be merged or made inactive in QuickBooks Online are Accounts Receivable and Accounts Payable. These accounts are used to track customer payments and vendor payments, respectively, and are essential elements of a company’s chart of accounts.
Merging or deactivating either of these accounts would cause an interruption in the accuracy of the financials. Additionally, these two accounts are used to facilitate the reconciliation process, which is an essential part of the record keeping process.
What happens if I delete a bank account in QuickBooks?
When you delete a bank account in QuickBooks, all of the associated transactions will also be deleted from the register. This includes deposits, payments, transfers, charges, and fees. Any existing transactions from the deleted account will be removed from reports, such as a Profit and Loss Report or Balance Sheet Report, but the associated transactions will not be deleted from the Audit Trail.
The journal entries related to the deleted account will remain in the record.
You will also need to manually update any transactions related to the deleted account and transfer the data to the appropriate account. For instance, if you’ve removed an Accounts Payable account, then you’ll need to transfer the existing transactions to the appropriate expense account.
Finally, please note that once an account has been deleted, it cannot be recovered. As such, it’s important to double-check that you want to delete the account before finalizing the action.
Which accounts in the chart of accounts Cannot be deleted?
Generally, most accounts in the chart of accounts cannot be deleted as they are essential in order to track the financial activities of a business. Few of the accounts in the chart of accounts that cannot be deleted is the common primary accounts such as Assets, liabilities, revenue, expenses, gains, and losses.
These accounts are the building blocks of financial accounting and are necessary for establishing the financial position and performance of a business. Besides, there are also other accounts deemed important which cannot be removed, because they provide vital information about specific financial transactions.
Examples of these accounts include bank account, payroll accounts and fixed asset accounts. If a business decides to remove any of these accounts, the financial information would be inaccurate or incomplete, leading to reports that are non-compliant with accounting standards.
Thus, the best practice is to retain all accounts in a chart of accounts and only make changes to the specific accounts when it is absolutely necessary.
Where are 2 places you can search for apps that work with QuickBooks Online?
You can search for apps that work with QuickBooks Online in two places: the QuickBooks App Store and third-party app and add-on providers.
The QuickBooks App Store is located within the QuickBooks Online interface and is the official source of apps that are QuickBooks-certified. This means they are thoroughly tested, regularly updated and entirely compatible with your QuickBooks Online account.
You’ll find a wide selection of apps that help you accomplish tasks like simplifying payment processing, receiving invoices, automating payroll and tracking inventory.
In addition to the QuickBooks App Store, you can also find apps and add-ons from third-party providers. These apps may provide similar services to those available in the App Store, but must meet certain security and performance criteria in order to be compatible with QuickBooks Online.
Be sure to research third-party providers carefully to make sure they meet your requirements and do what you need them to do.
What does customer inactive mean?
Customer inactive refers to customers who have not engaged with a business for a prolonged period of time. This can mean that a customer has not purchased products in a long time, has not responded to marketing emails or other outreach, or has not interacted with a business in general for a long time.
When customers are considered inactive, businesses can often make efforts to re-engage them by providing incentives, discounts or other promotional offers. In most cases, businesses will only consider customers inactive if they have not had any type of contact in over a year or more.
Who is a dormant customer?
A dormant customer is someone who has made previous purchases or engaged in some other type of activity with a company, but has not done so recently, or in a very long time. Dormant customers can be found in a variety of circumstances, including those who no longer use a particular product or service, or who have switched suppliers and taken their business elsewhere, or who are simply inactive due to their circumstances or preferences.
It’s important to identify dormant customers in order to determine how best to reach out to them and reengage them. Companies can often use data from past purchases and other activities to determine which customers may be dormant, and reach out to them through targeted messaging, promotions, or even customized offers and rewards.
By doing so, a company can take advantage of existing customer relationships and encourage those customers to interact with them again.
How do you respond to an unresponsive customer?
When dealing with an unresponsive customer, it is important to remain patient and understanding while also providing a sense of urgency and commitment to helping them. Begin by carefully listening to their concerns and take time to research the issue.
Depending on the customer’s preferred communication methods, reach out with a proactive message in the form of email, phone call, text, or other message for further discussion. If possible, offer solutions to their question or concern, explaining each step of the process clearly.
Demonstrate a sense of ownership of the issue, apologize for any inconvenience, and use a courteous yet assertive tone to keep the conversation going. Most importantly, stay in touch with the customer throughout the process and make sure to thank them for their patience.
Can Retained Earnings be zero?
Yes, Retained Earnings can be zero. Retained Earnings is the aggregate amount of a company’s profits that have not been paid out to shareholders, and it can be zero if all profits have been paid out or if a company has been suffering losses or running at a break-even point.
Retained Earnings is reported on a company’s balance sheet, and it is a crucial component of a business’s financial health. Its presence or absence is a sign to potential investors of how the company has been faring on the financial side, and it can represent how far profits have been reinvested in the company.
Therefore, a company having a zero Retained Earnings balance is not necessarily a sign of financial difficulty, but instead, a sign of effective dividend strategies and of taking care of shareholders.
How much retained earnings should a company have?
The amount of retained earnings a company should have is dependent upon several factors, such as the size of the company, its growth rate, and its industry. Generally, most companies aim to have a larger retained earnings closer to the upper range of what is considered to be financially sound.
For established businesses, having a higher retained earnings cushion enables the company to take advantage of opportunities when they arise, expand their product lines, or invest in new technologies.
Larger businesses with strong profit margins may also need to have higher retained earnings to stay competitive in their industry.
If a company has only recently started and has yet to post consistent profits, its retained earnings should be more modest and be maintained to cover any short-term losses. This allows the company to experiment and invest in strategies that may pay off in the long run.
Companies in this stage of their development need to be strategic with their financial resources and not risk major losses.
The most important factor to consider when determining the appropriate amount of retained earnings is to ensure that the company’s financial health and stability remain intact. Financial analysts suggest that having a minimum of two to three times the annual operating expenses as your retained earnings cushion would be a safe number to aim for, especially for smaller enterprises.
Companies should regularly review their accounts to ensure that their retained earnings remain within acceptable limits.
What happens to retained earnings when a business closes?
When a business closes, its retained earnings are used to pay off outstanding business debts and liabilities. Retained earnings typically consist of past net income, undistributed profits, and accumulated surplus that had not been distributed to shareholders in the form of dividends.
These funds are first used to pay off any secured creditors, such as loans and other liabilities, in order to protect the principals of the business. After secured creditors have been paid off, any remaining funds will be distributed to unsecured creditors.
This could be creditors that the business holds agreements with, such as suppliers or vendors. However, if there are no remaining funds left after paying back creditors, the business may declare bankruptcy.
In this scenario, the courts will decide how the remaining funds (if any) will be divided among creditors. Additionally, the business can use retained earnings to pay shareholders’ dividends before closing.
But, it is important to note that shareholders have the lowest priority when it comes to repayment and may not receive any of the remaining funds.
