Occasionally, you may experience Bad Debt, or a debt that cannot be recovered. This would happen when a client has been to see you for a session, and never paid you for that session.
Tracking bad debt is important for accurate accounting.
To mark an invoice as Bad Debt:
- Head to the Workflow.
- Click Balance Owing >30 days (you cannot mark a session that is less than 30 days old as bad debt).
- Click the checkbox next to the invoice you are marking as bad debt, to open the green edit bar.
- Click the Toggle Bad Debt button.
- This will remove the invoice from your list of unpaid invoices, but you can always use the Filter Icon in the top right to view all Bad Debt.
A record of bad debt is stored in your A/R Report and each item you have marked is clearly indicated under the Bad Debt column.
If a client does pay you for an old session which you have marked as Bad Debt, simply reverse the process above!
- Head to the Workflow.
- Click Balance Owing >30 days. Use the filter icon to Show Bad Debt.
- Click the checkbox next to the invoice you are un-marking as bad debt, to open the green edit bar.
- Click the Toggle Bad Debt button.
- This will add the invoice back into your list of unpaid invoices! You can then Record Payment from the client's Client Account or right from the Workflow!