Write off is a part of any company when consumers fail to pay their debts. When any attempt to get the money back has also proven unsuccessful, the only alternative left is to write off the invoice as a bad debt. Users can Write Off their invoices using Accountant Tools and the below-mentioned steps help you to do using this Tool.
Now let’s know about Accountant Tools is nothing but a unique set of features. Accountant Tools provide special features designed to help you easily analyze and manage financial data for your customers, as well as shortcuts to helpful QuickBooks Online areas. In the QuickBooks Online Accountant Company of your employer and the QuickBooks Online Company of your client, you use the Accountant Toolbox the same way.
Procedure to Write Off an Invoice in QuickBooks
- Open Toolbox icon that includes \uD83D\uDCBC
- Select and click on Write Off Invoices
- Set the following things that include Age, Balance Due less than and To Date
- Then set filters in order to find the invoices
- Next click on Refresh
- Select the checkboxes that you want to write off
- Now, from the Write Off Account, select the account that you want to use for bad debts using the drop-down arrow
- Then select and click on Preview and Write Off
- Then analyze the invoices that you choose to write off
- When everything is set then click on “Write Off”
- In the end, click on the Close button.
Write-Off unpaid invoice in QuickBooks
QuickBooks lets you handle balances that you can’t claim on account receivable. You can also write off unpaid invoices and here are the ways to write off and later declare them with the name “bad debts”. It means a client owes you money but you can’t collect it for any reason. They’ve got a debt with you but you know that you won’t get paid. In case, If your company uses a method called accrual accounting then you can easily write off bad debt in terms of deduction.
Ways to write-off bad debts
When invoices you file in QuickBooks are uncollectible, you need to report and write them off as bad debt. This guarantees that the receivable accounts remain up-to-date and the net profit. Follow the below-given steps to write off:
Step 1: Add an expense account to track the bad debt
- Select and click on Chart of Accounts within the Lists menu
- Now, click on the Account menu then click on New
- Then select Expense and then click on Continue
- Enter your Account Name as Bad Debt
- At last, click on Save and then Close.
Step 2: Close out the unpaid invoices
- Select and click on “Receive Payments” that you can find in “Customers menu”
- Type the customer name in the field named “Received from”
- Enter $0.00 in the Payment amount field
- Select and click on Discounts and credits
- Enter the desired amount that you want to write off in the field named “Amount of Discount”
- Now, select the account that you have added in step 1 for “Discount Account”
- Then click on option “Done”
- In the last step, click on the Save and Close button.
How to reach us?
The above-mentioned procedures help you to Write Off an invoice in QuickBooks as well as an unpaid invoice that is also denoted as bad debts. In case, you are still facing difficulty in performing the steps and have a query regarding this then it is recommended you to get in touch with QuickBooks technical support toll-free number. They are highly experienced who are available 24*7 to assist you and more efficient to get your problem easily resolved. You can also reach out to them by dropping an email at this email address at info@accountscomparison.com or can do a live chat with dedicated QuickBooks ProAdvisor experts.