Edit Chart of Accounts in QuickBooks Online- Step-by-Step

It’s essential to have a proper chart of accounts for keeping your financial records clean and functional. If you need to modify or customize your list of accounts (Chart of Accounts) in QuickBooks Online (QBO), you have landed on the right article. In the post below, you’ll find how to edit your chart of accounts in QBO, add new accounts, delete or mark accounts you don’t need, and even refresh and renew your numbering system—all while keeping your reports accurate. We’ll address common concerns brought up by users and provide a helpful, step-by-step guide that also covers real-world advice from the QuickBooks community.

This is the right post for business owners, accountants, bookkeepers, and even non-government organizations wanting to get rid of their bookkeeping woes without stress. Let’s break down exactly how to edit, add, or delete accounts in QBO—without losing historical data or confusing your reports.

What Is the Chart of Accounts in QuickBooks?

The chart of accounts is a list of all your company’s accounts and balances. It provides a place for you to monitor assets, liabilities, income, and expenses. When you look at your chart of accounts, you see a snapshot of how much cash you have, what you owe, and where your money is flowing in from and out to.

Types of Accounts in QBO

There are two main types of accounts in QuickBooks Online:

Balance Sheet Accounts

These comprise accounts like bank accounts, credit card accounts, loans, equity, etc. Each has a separate register in which transactions are recorded. They appear on your balance sheet report and are essential for seeing your financial health.

Income and Expense Accounts

These monitor your company’s income and expenditures. They don’t have dedicated registers, like balance sheet accounts. They do show up on income statements and other financial reports.

In QBO, the default chart of accounts is typically set up according to your type of business. But if you desire more specific accounts or a different structure, you can add, edit, or delete accounts to align with your business.

How to Add an Account in QBO

Creating a new account in QuickBooks is not a tricky task. If you want to track a new type of income or expense, do so by following these steps:

Access the Chart of Accounts

1. Go to the Transactions menu.
2. Select Chart of Accounts. You may also see a link that reads “Take me there.”

Create a New Account

1. Click on the New button.
2. You may see a pop-up labeled Category Type with four options on some versions (Income, Expense, Other Income, Other Expense). If you only see these options on your screen, it could be because of an older version of QuickBooks or a lower-level subscription.
3. On higher versions, you will see a dropdown for Account Type and also for Detail Type.

Fill Out Account Details

1. Put a name that makes sense for your business.
2. If desired, fill in a description and an opening balance.
3. Click on Save (or Save and Close in some versions).

Quick Reference Table – Add an Account

Step	Action	Notes
1	Open Chart of Accounts	Go to Transactions > Chart of Accounts. Search for “Take me there” for direct access.
2	Select New	The top shows a New button. Some interfaces have only Category Type buttons.
3	Select Type	Select Account Type (and Detail Type if available). Advanced versions have more options; older versions might not.
4	Fill in Details	Enter account name, description, and starting balance. Make sure the name reflects your business terminology.
5	Click Save or Save and Close	Ensure that the account has now been added to your chart.

How to Edit an Account in QBO

To keep your books organized you might need to edit an existing account. Whether you need to rename an account or change its details, follow the instructions below:

NOTE: Some accounts (e.g., A/P, A/R) can’t be deleted or renamed. Create a new account instead

1. Go to Transactions, then click on Chart of Accounts.
2. Locate the account you would like to modify. You can scroll through or search the list.
3. Click the dropdown next to Account history or Run report (the option may differ).
4. Select Edit.
5. Update the fields as needed. If you are using older versions, you may only be able to change the name while keeping the Detail Type fixed.
6. Click Save (or Save and Close if you see that option).

Editing Transaction History

If you need to edit historic transactions associated with an account:

1. From the chart of accounts, select Account history or Transaction detail.
2. Choose the transaction that you want to modify.
3. Edit the fields and take the appropriate action: Delete, Edit, Cancel, or Save.

This method allows you to keep your records clean while keeping historical data for accurate reporting.

How to Delete or Make an Account Inactive

You can even clean up your chart of accounts by deleting or deactivating accounts you are no longer using. Here’s how to do it:

Important: Test Changes in a Sandbox: Use QuickBooks’ “Test Drive” mode to experiment without altering live data.

Deleting an Account

1. At the top, click the Gear icon (Settings).
2. Choose Chart of Accounts under Your Company.
3. Scroll through until you find the account you wish to delete.
4. Click the dropdown arrow in the Action column, then select Delete.
5. Click Yes to confirm your decision.

Deleting an account will not delete the transactions associated with it. The history remains intact for your reports.

Making an Account Inactive

For most users, making an account inactive is a more secure option than deletion. This way you can hide the account from your active view while keeping its historical data.

1. Find the account in the Chart of Accounts.
2. Scroll to the Action column & click the dropdown arrow.
3. Select Make inactive.

You can also filter the list later to show inactive or deleted accounts if desired.

If you’re transferring the balance from an inactive account to an active account, you could use a journal entry. Here’s how:

1. Click the + New button.
2. Select Journal entry.
3. Use the two columns available to alter the balance.
4. Click Save (or Save and New).

Keep in mind that if you edit or rename an account, past source documents may still reference the old name. This also means you may have to be more diligent about record keeping if you change account numbers.

Common Problems & Solutions

Editing your chart of accounts may lead to issues. Here are some common problems and easy fixes:

Missing Save Button

Several users have noticed the missing Save and Close option. On newer QBO versions, you may see only Save. If you’re unsure:

1. Check in the form for other save options.
2. Click Save to see if your changes get saved.
3. If the save button still won’t work:
   • Using a private browsing window (or incognito mode) could help rule out problems with cached data.
   • Clear your browser cache.
   • Switch to another supported browser. Check QuickBooks System Requirements.

Interface Differences

The interface will differ from older to newer versions of QBO. For example:

1. In older versions, you may see a Category Type with only four possible options: Income, Expense, Other Income, and Other Expense.
2. Higher versions provide more detailed dropdown menus for Account Type and Detail Type.

If your screen is not the same, verify your level of subscription for QuickBooks. If you think there is an issue with your interface, you can also contact QuickBooks support for assistance.

Account Numbering and Renaming

Some changes to account numbers or names might affect your reports and historical data. For example, if you modify an account number:

1. Old numbers will still be visible in past source documents.
2. You should document these changes carefully for accurate record keeping.

If you’re planning to revamp your accounts the experts suggest it’s probably easier just to make the old ones inactive and set up new ones. This prevents confusion with older documents and allows you to keep your reports clean.

Tips for Renumbering and Revising Accounts

Reorganizing your chart of accounts can be a heavy lift — particularly when juggling multiple projects or changing business needs. Based on real users’ experiences, here are some tips:

Account Limit Awareness

QBO has a limit of 250 accounts in your chart. If you keep adding new accounts without deactivating old ones, you could hit this limit and have trouble managing your books.

Making Accounts Inactive

Do not rename or renumber old accounts; make them inactive instead. This allows you to keep historical data and use new accounts for future transactions.

Using Journal Entries

If you want to transfer a balance from a previous account to a new account, use a journal entry. So it helps keep your reports updated so you have a better view of your financial state.

Documenting Changes

Be sure to note any changes you make — particularly if you change account numbers or account names. This documentation gives you a standard for accurate record of past transactions, which provides clarity for audits.

Consult with an Expert

Seek advice from an accountant or a QuickBooks expert when in doubt. Their insights can help you steer clear of problems with record keeping and reporting.

Steps to Rename and Change Account Number

Review the Current Chart

1. Determine which accounts you need to update.
2. Observe their current numbers and names.

Decide on the Approach

1. Make them inactive, keep them for historical data, and create new ones if they need to be preserved.
2. If you’re just changing the name for ease, just edit the account.

Add Journal Entries (if applicable)

1. Create journal entry for the transfer balance of inactive accounts.
2. Be sure to record the debit and credit so that your reports match.

Record the Changes

1. Make a record of changes that you make.
2. This can be useful for you if you ever need to go back to the previous structure.

By following these steps, you can help maintain accurate records and ensure your financial data is correctly categorized.

Tips for NGOs and Nonprofits Managing Their Chart of Accounts

Nonprofit organizations have unique financial management needs. If you run an NGO or NPO, consider the following tips:

Project-Specific Accounts

Make distinct accounts per project or program. This allows you to monitor outflows and revenues for each project separately.

Consider the Account Limit

As QBO offers 250 accounts only, you will have to think your chart of accounts carefully. You may need to consolidate or inactivate accounts that are not in use.

Keep Your Records Clear

If you change your accounts, such as renaming them or changing their numbering — be certain that you have a clear record of the changes. When sharing financial information with stakeholders, this is particularly important for audits.

Consult a Professional

Partner with an accountant familiar with nonprofits. They can assist you in structuring your chart of accounts so that it meets both your reporting requirements and regulatory requirements.

Q&A (Question and Answer)

Here are some popular questions around how to edit the chart of accounts in QBO and summarized answers from user questions and support posts.

How can I edit the chart of accounts in QuickBooks Online?

You can edit your chart of accounts by locating the account, clicking the dropdown arrow in the Action column, selecting Edit, updating the fields as needed, and clicking Save.

Can I delete an account in QBO?

You can delete an account, but please note that deleting does not remove transactions from your reports. Instead, consider marking the account as inactive. To remove, go to the gear icon, then click Chart of Accounts, find the account you want to delete, and choose Delete within the dropdown.

How do I deactivate a QuickBooks Online account?

Find the account you want to hide in the chart of accounts, click the dropdown arrow in the Action column, and select Make inactive. This hides it from your active list but keeps the transactions available for reporting.

How to add a new account QuickBooks Online QuickBooks Online?

Select the New button in your chart of accounts. Fill in the account type (or category type in older versions), a name, and any other details, and click Save or Save and Close to add it to your list.

What happens to transactions when I delete an account in QBO?

You delete an account to remove it from your active chart, but the historical transactions are not deleted. They no longer show up in your reports. If you want to keep the historical data, make the account inactive instead.

Wrapping It Up

The QBO chart of accounts edit is no-chaos. You can make your books work precisely as you need them to, with a little foresight and the right actions. We hope this guide has provided you with examples and clear info on how to edit chart of accounts in QuickBooks Online. Whether you’re using the Add, edit, or cleanup options, the above steps should keep your books tidy, and your financial reporting accurate.

If you require additional assistance or individualized guidance, feel free to contact us. We will be here to help you along this journey. Call us today to find out how to maximize your use of QuickBooks Online.