Here’s How to write off an Invoice in QuickBooks?

Getting money from certain clients is actually bed of thorns and obviously affects your business in a negative way. The customers might refuse to pay back the amount they owe you and after a certain point of time there is nothing much you can do. The next step is to write off an invoice in QuickBooks. The steps to write off invoice in QuickBooks are essential to maintain your accounts receivable and net income. Follow through each step mentioned in the blog to avoid errors while tax filing later. The methods vary as per QuickBooks Version and hence you must lookout for the one suited to you. 

Call the QuickBooks support team at (844)-888-4666 and get help from professionals to record unpaid invoice in QuickBooks

Importance of method to Write off Invoice in QuickBooks

No matter what the reason is for customer not paying you the amount, it is important that you must maintain record of the same for the following reasons:

1. When you delete unpaid invoice, you delete out the important information which would have helped you avoid dealing with same customer in the future.
2. A check is to be maintained on the write off invoices percentage.
3. Instead of knowing how to write off invoice in QuickBooks, you delete it, a mess is created in your sales tax payable liability account.
4. The deleted invoice is highlighted as unbilled and appear every time you work with the customer. As a result a lot of confusion bubbles up.

How to record Unpaid Invoice in QuickBooks?

Add Expense Account to rack bad debt

1. Click on Lists menu and choose Chart of Accounts.
2. Select Account menu and hit on New.
3. Choose Expense and then press Continue.
4. In the Account Name, give a relevant name.
5. Hit on Save & Close.

Close the Bad Debt/Unpaid Invoices

1. Select Receive Payments from the customer's menu.
2. In Receive from the field type the name of the customer for whom you want to write off an invoice in QuickBooks.
3. Enter $0.00 in the Payment Amount.
4. Click on Discounts and credits.
5. Finally, click on Save and Close.

How to write off an invoice in QuickBooks is a confusing and overwhelming task. If you are stuck, do not experiment on your own. Be wise and contact Intuit certified QB ProAdvisors at (844)-888-4666. Our support team stand at your service and will avoid any further delay in your working with QB.