Glossary › Write-Off
Write-Off
Removing an amount from the books as unrecoverable or fully expensed — a bad debt, obsolete stock, or depreciated asset.
A write-off removes value from the books that will never be recovered: an invoice the client will never pay, stock that can't be sold, or the remaining value of a scrapped asset.
Writing off cleans the books so reports reflect reality. Many write-offs are tax-deductible, which softens the blow — but documentation matters.
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