Typical threshold: 120+ days past due with no customer response. Bad debt is deductible against income for cash-basis businesses only when the cash was previously recorded as income.
Short definition. An invoice unlikely to ever be collected and written off the books.
Category. Bad debt is a accounting term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds bad debt into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does bad debt mean?
Typical threshold: 120+ days past due with no customer response. Bad debt is deductible against income for cash-basis businesses only when the cash was previously recorded as income.
