What does it mean to write off an invoice?

Overview

When you know you won’t receive payment for your invoice, you can write it off. We’ll take a look at why you should write off uncollectible invoices, and how to do it. This version is adapted for Nexbal with a shorter, practical structure.

Key Takeaways

• When do you write off an invoice?
• Pro-tip: If there’s a mistake on the invoice, you should credit it
• Why should you write off an invoice?

Practical Checklist

1. Define the process and responsibilities before you invoice.
2. Verify customer data, amounts, taxes, and due dates.
3. Use a consistent template and keep documentation in one place.
4. Follow up unpaid invoices with a predictable reminder flow.