Is there a limit on the Bad Debt that I can write off?
If a debt is bad, it’s bad!
Let's write off bad debts and move on.
When does a Bad Debt become Bad?
While it isn’t definitive, here’s some considerations:
Must not have a chance of receiving the money
Must have proof of following up and doing what you can to recover the amount, even though unsuccessfully
You MUST have considered the debt Bad, before 30 June of the year you write it off
Bad Debt and Debtors are affecting my cashflow, what advice would you give?
This signals that something isn’t right in your business.
It could be your:
Quality of your product or service
Clients you’re choosing to work with
When you take payment for your services
But something is out of kilter.
Book in a Quick 10 Min Chat here with an Inspire Chartered Accountant to talk about Tax Saving Strategies that will work for you.
Attend our Cash Rich Business Workshop where we will spend 2 hours walking you through the exact step by step process to become a far more profitable business than you currently are. https://inspireca.com/events