Hi, we have an invoice that will never get paid (bad debt). I want to void it so it doesn’t still show in our total open receivables, etc. in Syncro.
The invoice syncs to QuickBooks Online. I already voided it there.
How can I void the invoice in Syncro?
I’d speak with your accountant to confirm, but typically you don’t want to be voiding invoices in this manner. You should be marking them as bad debt, particularly because if you performed work and didn’t receive payment that has positive tax implications.
So normally you’d want to create a payment method in Syncro called “Bad Debt” and use that to pay for and track these types of situations.
Hi Andy, thank you for your advice. We actually use cash based accounting for taxes. I believe marking the invoices as paid using the bad debt method would increase our cash based income on the P&L and have negative tax implications. This is why we decided to use the voiding method. Your comment does make me wonder if we should be using accrual based accounting only, I will need to bring that up with the accountant. Thanks.
I’d recommend double checking that with your accountant.