Bad Debt Deductions Information 
Your Virtual Credit Manager
MAY 23, 2023
Any subsequent collection expenses and bad debt write-offs are more easily recouped through additional sales than if your gross margins are low. If a customer regularly pays late, constantly takes payment deductions, generates a high return volume, or constantly raises disputes, your net profits will be negatively affected.
Fundera
FEBRUARY 13, 2017
But while there’s a wealth of information out there about tax deductions for business owners in general, when you run your business out of your home, it can be far more challenging to understand how some of those policies apply. If you or your spouse are 65 years or older, you can deduct expenses that exceed 7.5% of your AGI.
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Your Virtual Credit Manager
DECEMBER 24, 2024
The only time AR comes to the forefront is when there is economic turmoil and an increased risk of bad debt losses. If they are not proving effective, ensure you are supporting them fully by providing customer information, access to your AR Ledger, copies of invoices, purchase orders, shipping documents, and so forth on a timely basis.
Your Virtual Credit Manager
DECEMBER 20, 2022
All these bad customer behaviors are a drain on your profit. Buy Credit Reports Managing Credit In-house Your other option is to assess, monitor and control the bad debt exposure yourself. Invalid customer deductions, however, account for only 5 to 10 percent of the deductions impacting a seller.
Fundera
OCTOBER 26, 2019
21 Small Business Tax Deductions. For small business owners, there are few sweeter phrases than “small business tax deductions.” ” After all, everyone wants to save money, and small business tax deductions allow business owners to do just that. What Is a Small Business Tax Deduction? Inventory costs.
Your Virtual Credit Manager
NOVEMBER 14, 2023
It affects the level of bad debt loss (uncollected Accounts Receivables) you suffer. Selling only to financially strong customers reduces the risk of bad debt loss, (and the cost of Credit and Collections activity required). The increased risk of a significant bad debt loss that your firm bears.
Your Virtual Credit Manager
SEPTEMBER 12, 2023
References require checking, a credit report must be ordered, all the information evaluated and a decision made. To make matters worse, invoice errors also tend to generate payment deductions (partial payments). To make matters worse, most payment posting errors will involve deductions. Here’s more on credit evaluations.
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