A bad debt write-off is the accounting process of removing a receivable that is deemed uncollectible from a company’s books. It involves recognizing the debt as an expense on the income statement and reducing the accounts receivable balance on the balance sheet. This action reflects the acknowledgment that the company is unlikely to recover the debt and allows for more accurate financial reporting by reflecting the true value of receivables.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Go Digital in Your Credit Department
Data-driven Finance
Intelligent Order-to-Cash Through Analytics, Automation, and AI
Data-Driven Finance for Achieving Excellence in Order-to-Cash Operations
Add AI to Your Order-to-Cash Process
AR Automation for JD EDwards
AR Automation for SAP
AR Automation for Oracle
AR Automation for NetSuite
AR Automation for PeopleSoft
AR Automation for MS Dynamics
Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
