I know there’s a thousand posts on writing off bad debt. I’ve successfully created credit memos for bad invoices. They’re actual, direct expenses and I’m accrual. so basically I’m sitting at the income cancelled out (it’s same year bad debt from a company that is no longer)
my question: I provide services. I thought I was also going to have some sort of offset for time spent - ie cost of goods sold or similar to reduce my taxable income rather than just zeroing out like I never billed. Is this the case and how do I successfully do that?
Assuming you are not taxed as a corporation, there is no cost for your time and effort.
Cost is what you actually spend.
When you use a bad debt credit memo for an invoice, it is true that the income is expensed (voided), what is not voided however is the cost of anything that was sold, inventory sold in other words, that is still an expense.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
