Close the account in QuickBooks first, then notify your bank

Closing a checking account in QuickBooks means removing it from your books so you stop recording transactions to it. This is different from closing the account at your bank — you do both, but in this order: close it in QuickBooks first, then contact your bank to close the actual account. If you close the bank account before updating QuickBooks, you'll have a mismatch between your records and your bank's, and reconciliation becomes impossible.

The steps depend on which version of QuickBooks you use. Desktop versions (QuickBooks Pro, Premier, Enterprise) and QuickBooks Online have different paths to the same result. In both cases, you're marking the account as inactive so it no longer appears in transaction lists, but the history stays in your file for tax and audit purposes.

Key Takeaways

  • Close the account in QuickBooks before closing it at your bank, so your records stay aligned with your bank's records.
  • In QuickBooks Online, go to Settings > Chart of Accounts, find the checking account, and click the action menu to mark it inactive.
  • In QuickBooks Desktop, open the Chart of Accounts, right-click the account, select Edit Account, and check the "inactive" box.
  • Reconcile the account one final time before closing it to catch any uncleared transactions or errors.
  • After closing in QuickBooks, contact your bank to close the actual account and confirm what happens to any remaining balance.

Reconcile the account before you close it

Before you mark the account inactive in QuickBooks, run a final reconciliation. Open the account, pull your most recent bank statement, and make sure every transaction in QuickBooks matches what the bank shows. If there are outstanding checks or pending deposits, record them now or note them so you know what to expect when you close the account at the bank.

If the reconciliation doesn't balance, find the difference before you close. Once an account is marked inactive, it becomes harder to edit transactions in it, and you don't want to leave errors behind. Take the time to fix it now — it usually takes 15 to 30 minutes and saves you headaches later.

Close the account in QuickBooks Online

Go to Settings (the gear icon in the top right), then select Chart of Accounts. Find the checking account you want to close and look for the three-dot action menu on the right side of that row. Click it and select "Make Inactive." QuickBooks will ask you to confirm — click the confirmation button, and the account is now inactive.

The account disappears from your active account lists and dropdown menus, but all the transactions you recorded to it stay in your file. If you ever need to see the history or add a transaction you missed, you can reactivate the account by going back to Chart of Accounts, checking the "Inactive" box at the top to show inactive accounts, and clicking the action menu again to reactivate it.

Close the account in QuickBooks Desktop

Open the Chart of Accounts (usually under Lists in the menu bar). Find the checking account you want to close and right-click on it. Select "Edit Account" from the menu. In the account details window, check the box that says "Inactive" — the exact label varies slightly by version, but it's always near the top of the window.

Click OK or Save, and the account is now inactive. Like QuickBooks Online, the account disappears from your active lists but the transaction history remains. You can reactivate it later by opening the Chart of Accounts, finding the account in the inactive section, right-clicking, and unchecking the inactive box.

What to do with uncleared transactions

If you have checks that haven't cleared or deposits that haven't posted, you have two choices: wait for them to clear before closing the account in QuickBooks, or close the account and handle them separately. Most people wait, because it's simpler — just delay closing in QuickBooks until the bank statement shows everything cleared.

If you need to close the account right away and there are still outstanding items, record them in QuickBooks now so they're in your file. When they finally clear at the bank, you'll already have them recorded, and you won't have a surprise when you reconcile later. Write down which checks or deposits are still pending so you can watch for them.

Close the account at your bank

After you've closed the account in QuickBooks and reconciled it one last time, contact your bank to close the actual checking account. You can usually do this by phone, in person, or through your bank's online portal — check your bank's website for the fastest method. Have your account number ready.

Ask the bank three things: whether there's a fee to close the account, what happens to any remaining balance (they'll usually mail a check or transfer it to another account you specify), and whether they'll send you a final statement. Keep that final statement — it's your proof that the account is closed and your last record of the account balance.

Frequently Asked Questions

Can I delete the account instead of marking it inactive?

No. QuickBooks doesn't let you delete accounts that have transactions recorded to them. Marking it inactive is the correct way to close it. The account stays in your file for historical and tax purposes, but it won't clutter your active account lists.

What if I close the account at the bank before closing it in QuickBooks?

Your QuickBooks records and your bank's records will be out of sync. When you try to reconcile, QuickBooks will show transactions the bank no longer recognizes. Close it in QuickBooks first, then at the bank, and you'll avoid this problem.

Can I reactivate the account if I change my mind?

Yes. In QuickBooks Online, go to Chart of Accounts, check the "Inactive" box to show inactive accounts, find the account, and click the action menu to reactivate it. In Desktop, find it in the inactive section of the Chart of Accounts and uncheck the inactive box. You can then record transactions to it again.

Do I need to do anything special if the account has a negative balance?

Contact your bank immediately. A negative balance means you owe the bank money. Settle this before you close the account — the bank won't close it until the balance is zero or positive. Ask whether they'll deduct the amount from another account or if you need to send a check.

What if there are pending transactions that haven't cleared?

Wait for them to clear before closing the account in QuickBooks, if you can. If you must close it right away, make sure those transactions are recorded in QuickBooks so your file is complete. Write down which items are still pending and watch for them on your final bank statement.