If you are searching ‘how to write off bad debt in QuickBooks’, then you have experienced a very unfortunate part of doing business. In business, you often stumble upon customers or vendors who areconsidered as the late payers. Also, there are some who may refuse to pay. You may try emailing, contacting or trying everything else to collect the money from your nonpaying customer. You also inform the customer about the late fees, due statements, and the workable paying plan. And, after you are exhausted trying everything, you realize the customer is not going to pay after all. Hence, in your account, you write this as a ‘bad debt’. In every case where you are not sure about getting money back from the customer, you should write off the bad debt. For such cases, the invoice is considered as non-collectible and therefore, you need to add this as a bad debt in your QuickBooks account. Follow the below steps to learn how to write off bad debt in QuickBooks.
It is important to record bad debt in your QuickBooks. Doing this ensures, that you clear the nonpaying invoice from the receivable accounts and deduct the new profit by that amount. Follow the steps below and learn how to write off bad debt in QuickBooks.
Note: Ensure that A/R Aging Detail report of your account is correct. Before you proceed with the following steps, make sure this report is accurate. In order to check, select ‘Reports’, click on ‘Customers & Receivables’ and go for the ‘A/R Aging Detail’ option.
First, we will learn how to create an account for ‘bad debt’ in QuickBooks.
Now, let’s learn how to write off bad debt in QuickBooks.
Although the above steps are easy to follow and complete, it is recommended to double check your work. This ensures that you wrote off the bad debt amount correctly in QuickBooks. Here are steps to ensure that.
And, you are done. This is how to write off bad debt in QuickBooks. It is important to follow every step diligently so that you end up typing the correct debt value. Any mistake can fluctuate the entire accounts and financial numbers. So, follow the steps carefully. Wherever needed, you can seek an expert’s help in getting along with the steps. You can simply place a call on the QuickBooks customer care support and get a quick guidance in resolving the query.
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