Yes, and if it is counted as income it then becomes a tax deduction (consult your CPA). Profit & Loss is all a part of business. How can you not have the ability to w/o a bad debt? A business that is 20 years old would have an AR of xxxxxxx pages because of bad debt. Each business should have a bad-debt policy that is incorporated. We adjust off balances after 6 months of attempted collections (system auto posts the notes so we have documentation) if the balance is under xxx. If it is over xxx then it goes to collections. Your PM system has codes for w/o. Contractual, Provider, bad debt, denial can't bill client.
I'm no tax expert and I certainly am no accountant but this sort of leads me to a question about that.. maybe someone knows. can doctors write off bad debt on their taxes? I'm just curious!
No, I think we clarified when they could and couldn't write off. I'm the one that caused the confusion with this :QuoteI'm no tax expert and I certainly am no accountant but this sort of leads me to a question about that.. maybe someone knows. can doctors write off bad debt on their taxes? I'm just curious!
We were definitely told "no right off" for our taxes. By the accountant and lawyer, and that was for work we did, but the provider left us high and dry.Michele