In QuickBooks Online, you can merge or make most accounts inactive to streamline your chart of accounts and improve organization. However, certain accounts cannot be merged or made inactive due to system limitations or because they are integral to the accounting structure.

Here are some examples of accounts that typically cannot be merged or made inactive:

1. Undeposited Funds: The “Undeposited Funds” account is a default account in QuickBooks Online that is used to temporarily hold customer payments until you deposit them into your bank account. It cannot be merged or made inactive because it plays a crucial role in tracking cash receipts.
2. Accounts Receivable (A/R): The “Accounts Receivable” account tracks amounts owed to your business by customers or clients. It cannot be merged or made inactive as it is essential for tracking outstanding invoices and managing your accounts receivable.
3. Accounts Payable (A/P): The “Accounts Payable” account records amounts your business owes to vendors or suppliers. It cannot be merged or made inactive because it is necessary for tracking outstanding bills and managing your accounts payable.
4. Opening Balance Equity: The “Opening Balance Equity” account is used to record the opening balances when you first set up your QuickBooks Online company file. After the initial setup, it is recommended not to merge or make this account inactive, as it can impact your financial records.
5. Retained Earnings: The “Retained Earnings” account represents the cumulative net income or loss from previous fiscal years. It cannot be merged or made inactive because it is a fundamental part of tracking your company’s financial history.
6. Currency Accounts: If you have multi-currency enabled in QuickBooks Online, accounts denominated in different currencies cannot be merged or made inactive due to the complexity of currency conversion and reporting.
7. Income and Expense Accounts: Income and expense accounts that are actively used in your transactions should generally not be merged or made inactive unless you are certain they are no longer needed. Doing so can impact your historical financial data.

While these are some common examples of accounts that cannot be merged or made inactive, it’s essential to exercise caution when making changes to your chart of accounts in QuickBooks Online. Before merging or making accounts inactive, it’s advisable to consult with an accountant or financial professional to ensure that the changes align with your business’s accounting needs and financial reporting requirements.