How to write off bad debt in QuickBooks

August 19, 2022

How to write off bad debt in QuickBooks

If you have bad debt that you need to write off, don't worry - QuickBooks can help! In this blog post, we will walk you through the process of how to write off bad debt in QuickBooks online.

 

Whether you are using QuickBooks Online or QuickBooks Desktop, we have you covered. Keep reading for step-by-step instructions on how to write off bad debt in QuickBooks.

How do I write off an unpaid balance in QuickBooks?

If you have customers that owe you money, and you don't think you'll ever collect the debt, you can write it off in QuickBooks Online. Here's how to go about a QuickBooks bad debt write off:

 

●  First, go to Sales from the left menu and select Customers.

●  Next to the customer name, select More, and then Write off the outstanding balance.

●  In the Write-off dialog box, enter the date of the write-off and any additional information in the Memo field,

●  Then select Save & Close.

 

That's it! QuickBooks will now show the amount you wrote off as a negative number on your customer's balance sheet.

What if I'm using QuickBooks Desktop?

The process for how to write off bad debt in QuickBooks Desktop is a little different. Here's how to do it:

 

●  First, go to Customers from the top menu and choose Customer Center.

●  Double-click on the name of the customer whose debt you want to write off.

●  On the Customer Info tab, click Set Credits and Write-offs.

●  In the Customer Credits and Write-offs window, click Write Off.

●  Enter the amount you want to write off in the Amount field and select Save & Close.

 

You're all set! QuickBooks will now show the amount you wrote off as a negative number on your customer's balance sheet.

How do I write off a bad debt invoice?

If you want to write off a specific invoice rather than the entire balance, here's what to do:

 

●  First, go to Customers from the top menu and choose Customer Center.

●  Double-click on the name of the customer whose debt you want to write off.

●  On the Customer Info tab, click Set Credits and Write-offs.

●  In the customer Credits and Write-offs window, click Write Off.

●  Click Invoice in the dropdown menu next to Amount.

●  Select Save & Close.

Integrating QuickBooks and Liveflow to avoid bad debt

LiveFlow is the fastest way to import your live QuickBooks Reports to Google Sheets, allowing you to track and manage your business finances in one place. LiveFlow also offers a quick and easy way to integrate QuickBooks Online with other applications, which can help you avoid bad debt altogether.

Book a demo with us today to see how LiveFlow can help you streamline your business finances!

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