Before writing off bad debt, it's essential to review the outstanding invoices and identify the specific ones that are uncollectible. Make sure you have exhausted all collection efforts before proceeding.

To properly track bad debt, you need to create an expense account specifically for this purpose. First , select the gear (settings) in the top right hand side of the web page.

QuickBooks is a widely-used accounting software developed by Intuit, designed to simplify financial management for businesses of all sizes. It provides a user-friendly platform for tasks like invoicing, expense tracking, payroll processing, and generating financial reports. QuickBooks automates many financial processes, making it easier for businesses to monitor their financial health, prepare taxes, and manage cash flow. With its various versions and integrations, QuickBooks caters to the needs of freelancers, small businesses, and larger enterprises, offering a flexible and comprehensive solution for efficient accounting and financial management.

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Writing off bad debt in QuickBooks Online is a straightforward process that allows you to accurately reflect the financial health of your business. When a customer fails to pay their outstanding invoice, it becomes a bad debt. Writing off bad debt removes the unpaid amount from your accounts receivable and recognizes it as an expense. Here's a step-by-step guide on how to write off bad debt in QuickBooks Online.

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