Whether it is end of year review or just time to write-off those invoices which will never be paid, the QuickBooks Online Accountant 'Accountant Tools' can make it fast and convenient to accomplish this task in a few steps. The Accountant Tools menu (the briefcase icon) displays tools not found in QuickBooks Online that help accountants manage client companies. The Write Off Invoices tool will move Open invoices from your Accounts Receivable on the Balance Sheet to the Bad Debt Expense account on the Profit and Loss.
1) Using the Tool Box at the top of your QuickBooks Online Accountant, choose Write Off Invoices
QBOA Accountant Tools Write-off
QuickBooks Online Accountant displays the Write Off Invoices page, which enables you to view invoices you might want to write-off, and then write them off to an account of your choice.
QBOA Invoice Write-off
2) Select date range and Choose write off date.
At the top of the page, you set filters to display the invoices you want to review. Select the age of the invoices to view: greater than 180 days, greater than 120 days, in the current accounting period, or in a custom date range you set. You also can set a balance limit.
3) To write off any invoices, click the check box beside them.
QBOA Write-off Account
4) At the bottom of the page, select the account you want to use to write off the invoices and click the Preview and Write Off button. The Bad Debit account is the default account, but you can select a different account if necessary.
5) QuickBooks Online Accountant displays the Confirm Write Off dialog box; if the information in the dialog box is correct, click Write Off, otherwise, click Cancel.
Looking at the Sample Accrual Basis reports below you can see the Accounts Receivable amounts on the Balance Sheet before and the after Write-off Bad Debts posted on the Profit and Loss.