Sometimes you just gotta write it off…..
Did you know that 16% of invoices don’t get paid?
Think about it – you get paid for 8 invoices in a row, no sweat. But when you send out that 9th or 10th invoice … the client just doesn’t pay!
And not only are you left in the lurch, you’ve now got this annoying unresolved transaction in your financial records.
So what do you do with that irritating open invoice? Should you delete it? Void it?? How do you handle something like that?
Honestly, it takes a little work to track it correctly; however, if your business accounting is accrual style, you may be able to write off that bad debt as a tax deduction!
If you’re using Quickbooks, check out this helpful step-by-step article from Intuit to help you get started.
If you’re still DIYing your bookkeeping, it’ll help walk you through the necessary processes, such as:
Running an aging AR report
Creating an expense account, and item, for bad debts
How to make and apply a credit memo
And, finally, how to run a report that shows your bad debts
Again, just check out the attached link – it’ll help walk you through the whole process.
What about you? Do you ever run into problems when it comes to receiving payment for your invoices? If so, how do you usually record it?
The attached article is pretty detailed!
But of course, if you ever need any help with these annoying (and annoyingly important!) financial tasks, just let us know!
We take care of this kind of stuff every day for our clients, and we’d love to help you take care of it, too!
Kerry Postel – Founder CEO Principal
Abacus Business Solutions
Has Higher National Diploma in Business and Finance, Certified in QuickBooks, Member of American Institute of Bookkeepers, and over 20 years of bookkeeping experience including construction, travel, restaurants, events management, and other various professional services.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.