Outstanding Balances - Marking Bad Debt

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.
• Select Unpaid >30 days (you cannot mark a session that is less than 30 days old as bad debt).
• Select the checkbox next to the invoice you are marking as bad debt to open the green edit bar.
• Select 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.
• Select Unpaid >30 days. Use the filter icon to Show Bad Debt.
• Select the checkbox next to the invoice you are un-marking as bad debt, to open the edit bar.
• Select 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.