After we make the old accounts inactive, can view all previous transactions, reports, and journal entries that were recorded under those old account heads?

Thanks for the detailed explanation, Sharanya.

Yes, making accounts inactive on your Chart of Accounts in QuickBooks allows you to retain full visibility of all historical transactions, reports, and journal entries recorded under those accounts.

This approach is recommended for the scenario you described, as it will not affect prior-period financial reports or comparative reporting. Inactive accounts will be excluded from future account selection lists but will remain visible in historical data and reports. This means that while inactive accounts are accessible for review and reporting, they will not be included in new transactions.

Before proceeding, I recommend consulting with your accountant to assist you in making accounts inactive. This will help prevent errors in your financial reports and maintain the integrity of your business’s records.

To make an account inactive, follow these steps:

1. Go to the Gear icon and select Chart of accounts.
2. Find the account you want to remove.
3. Select the Action dropdown and choose Make inactive (reduces usage).

If you want to visit your inactive accounts in your chart of accounts:

1. Select Settings, then choose the Chart of Accounts.
2. Next to the printer icon, pick the Gear icon.
3. Select the Include inactive checkbox.

I’m also including an article with details on what you need to know before making an account inactive: Make an account inactive on your chart of accounts in QuickBooks Online.

If you need further assistance with handling your accounts in QuickBooks, feel free to reach out.