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  1. Invoices/Bills - Feature to 'write off' as bad debt

    664 votes

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    13 comments  ·  For small businesses » Accounting features  ·  Admin →
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    submitted  ·  AdminEthan M (Admin, Xero) responded

    Hi community, we appreciate this idea has collected a fair amount of votes and commentary. This has all been feedback and taken seriously by our product teams.

    Currently, there are ways to record a bad debt in Xero, depending on your tax registration status and how you want the transactions to be recorded in your reports - We have help for this on Xero Central you can draw into.

    We don’t have any plans in the near term to expand functionality to develop a button to write off invoices or bills as 'bad debt'. If anything changes in this space, we’ll update you on this idea!

    Bethany Haughey supported this idea  · 
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    Bethany Haughey commented  · 

    I agree that the way Xero deals with bad debt is quite frankly embarrassing ! I know of no other accounting system that is so ham-fisted, even the most basic accounting systems (such as Starling's inbuilt system) deals with it better than Xero. Needing to raise a credit note is just wrong - I do not want a credit note showing on the customer account as this appears to any user of the system as if we, the business, have authorised this reduction their account. Also, there is a risk that the "credit note" might get sent to the client, another big no-no. Please Xero, you need to do better!