• Registered: 03-12-2009
  • Posts: 2

Topic: How to deal with bad debts?

Hi,

Every year I have customers that don't pay their bills. Is there any way of removing them from my unpaid invoices list without just deleting them? I deleted them in the past but my accountant tells me I shouldn't do that as I still need to record them as unpaid.

Any ideas?

Thanks
Jim

  • zorn
  • Administrator
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  • From: Media, PA
  • Registered: 07-09-2006
  • Posts: 583

Re: How to deal with bad debts?

There is no way to "hide" an unpaid invoice (beyond deleting the client outright). I'm curious as to why your account said that. I mean most small businesses are cash based, meaning you only need totals for tax purposes on monies paid, not monies owed.

Thanks for your interest and feedback!

zorn's Website

  • Registered: 03-12-2009
  • Posts: 2

Re: How to deal with bad debts?

My accountant seemed to think that having some way of showing that the invoice was not paid was helpful if there ever was a tax inspection. I'm no expert, but I assume the idea was that missing invoice numbers in the records - looked suspicious? Or something. No real idea.

Thanks for your reply.

All the best,
Jim

  • zorn
  • Administrator
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  • From: Media, PA
  • Registered: 07-09-2006
  • Posts: 583

Re: How to deal with bad debts?

Missing invoice numbers is a good reason.

zorn's Website

  • Registered: 01-22-2010
  • Posts: 4

Re: How to deal with bad debts?

jimbscotland wrote:

Hi,

Every year I have customers that don't pay their bills. Is there any way of removing them from my unpaid invoices list without just deleting them? I deleted them in the past but my accountant tells me I shouldn't do that as I still need to record them as unpaid.

On the other hand, you can always sue the deadbeats ;-)

Perhaps the feature request would be: adding folders or some other sorting mechanism in the various invoice lists, so you can see groups instead of series of individual invoices.  With a grouping scheme, you could drag your unpaid but written-off invoices (possibly useful to keep in case the client later turns out to be solvent and wants to give you more business;  you can let them know what it will cost based on their existing debt) into a folder for archival purposes that keeps them out of sight, allows you to calculate your percentage collected (a good stat to watch in some businesses, like criminal defense, where getting paid can be iffy if your clients aren't solvent enough to pay up front), and helps you keep a record of the work you've done (you can have deductible expenses even if the invoice turns out to be uncollectable).

Thanks!  Looking forward to updates :-)

  • Registered: 07-08-2010
  • Posts: 1

Re: How to deal with bad debts?

Make sure you know where to the bill (their names and addresses) are spelled correctly down to do - if they are a person, they risk a negative credit rating of the county court decision goes against them, they I need to settle. At the end of the day that you work for them they produce, contract or no contract you have proof that they (work files, copy and content, ie the right commission's this?) And that will stand on your side. That means you do not need a contract is not - they're invaluable - but will help your case. Another thing that someone (preferably older than themselves and are feeling can help official) accounts to your department - that it more difficult for you to fob off as a friendly conversation with another person chasing payments from won, says' t / he (it worked for me and pay bills within a day should not be any dirt from my father called them! when).