Glossary
Bad debt
Bad debt is an amount you sold on credit and are now sure will never be paid.
What it means for a shop owner
Do not wait forever, since an old debt becomes less likely to be collected every month. Write it off when you have run out of attempts, which books a loss. Lower the credit limit of a customer who is often late.
A worked example
A customer still owes 150 from a year ago and does not answer. You write it off and book a loss of 150.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes