Financial & invoicing terms explained
Write-off
A write-off recognizes that specific receivables are uncollectible after documented collection attempts.
Controls
Require approvals and evidence before writing off balances.
Tax
Bad debt deductions vary—consult your accountant.
Collections
You may still sell debt or pursue legal avenues after write-off depending on policy.
Write-off — FAQ
- Tax impact?
- Rules vary—work with your accountant on deductibility.
- Still pursue debtor?
- You can write off for books but keep collection options per policy.
- Partial write-off?
- Yes—reduce AR for the uncollectible portion only.