I need to cancel a project that has 1 deposit, 3 invoices and expenses attached. I need a step by step process to handle this correctly and fix my balance sheet.

Cancelling a project in QuickBooks Online (QBO), you don't truly cancel it, but rather mark it as such. This is done by changing the project's status to Canceled, and it retains all tracked information, @debbie168.

You can do this through the Projects menu, and select the project you want to change the status of. Click the pencil icon (edit) next to the project name. Change the project status to "Canceled".

If you need to delete an active project that has a balance, move the transactions to another project, sub-customer, or customer first. Then, you can follow the outlined steps below to delete them:

1.  In your QuickBooks Online account, go to your Projects menu.
2. Locate the complete/old project.
3. In the Action column, select the Options dropdown and choose Delete.
4. Select Yes to confirm.

Please know that entries linked with these projects will remain to keep your books intact. They can also be retrieved if you need to make any adjustments. Just tap the Small Gear icon at the right side of the screen and select Show Deleted Projects, then choose Undelete and mark it as in progress/completed or cancelled.

Find out more about the Projects feature from this article: Set up and create projects in QuickBooks Online.

You might want to generate project profitability reports to track your projects in a more in-depth manner. Here's a guide on how to do it: Use Project Profitability Reports in QuickBooks.

Lastly, to enhanced reporting and optimal use of QuickBooks, contact our Live Expert Assisted team for personalized support and guidance, ensuring confident and efficient use of QuickBooks.

By following these steps, you can effectively manage the cancellation of a project while maintaining accurate accounting records and an up-to-date balance sheet.