Bad Debt and Write-Off Log

Who this is for

Record the invoices you have stopped chasing. Each line shows the invoice, what it was for, anything recovered, the amount written off, the reason and the date the decision was made. The decision and the figure are then on paper for your books and your accountant.

Sole traders and freelancers who invoice clients on credit and occasionally have to accept that a debt will not be paid.

What this helps you track

• Which invoices were written off and for which customers
• The original amount and anything recovered before giving up
• The amount written off on each invoice
• Why it was written off and when the decision was made
• Who approved it, and the total written off in the period

How to use it

1. Write the business and the period the log covers.
2. When you decide an invoice will not be paid, give it a line with its number, customer, date and original amount.
3. Enter any part payment or recovery, and the amount you are writing off.
4. Note the reason plainly, such as customer ceased trading, disputed and settled, or not worth pursuing.
5. Date the decision and initial it, then mark the invoice as written off in your sales records.
6. Total the written-off column at the end of the period and carry the figure into your year-end summary.

Formats

• Printable PDF (A4 and US Letter)
• Fillable PDF with form fields
• Fill in online, saved in your browser

The printable is laid out inside a box that fits both A4 and US Letter, so the two files are identical and neither one is scaled. The fillable PDF has real form fields. The online version keeps what you enter in your own browser and builds the completed PDF on your device.

How to print

Download the A4 or US Letter file to match the paper in your printer, open it in a PDF reader and print at 100% — not "fit to page", which shrinks the writing space. Both files leave a 14 mm margin, which clears the unprintable edge on home printers. To print the online version with your entries in it, use the Print this sheet button, which prints only the sheet and none of the page around it. More on printing.

Questions

When should an invoice go on this log?

When you have decided to stop pursuing it, not while you are still chasing. Keep chasing records elsewhere, and move the invoice here once the decision is made so the log only holds settled outcomes.

Can a written-off debt be recovered later?

Sometimes. If money arrives after the write-off, note it against the original line and record the receipt in your cashbook. How a late recovery is treated in the accounts depends on the rules where you are.

Is a write-off an allowable expense?

That depends on your accounting basis and the rules where you are, so this sheet does not say. It records the facts; check with your tax authority's guidance or your accountant on the treatment.

Why record who approved it when I work alone?

Initialling and dating it marks the point you made the decision. If you have a partner or bookkeeper, it shows which of you agreed it.