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Bad Debt Write-Off Policy
Free bad debt write-off policy template establishing when and how a company writes off uncollectible accounts receivable.
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This free bad debt write-off policy covers Purpose, Criteria for Write-Off, Approval Thresholds, Accounting Treatment, Continued Collection Efforts with 8 clearly marked [placeholder] fields to fill in — built for small businesses and individuals documenting a loan or expense putting financial terms in writing so both sides have a clear, shared record. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Bad Debt Write-Off Policy
Company: [Company Name] · Effective Date: [Date]
Purpose
This policy establishes the criteria and process for writing off accounts receivable deemed uncollectible.
Criteria for Write-Off
An account may be considered for write-off when:
- It is more than [Number] days past due, AND
- Reasonable collection efforts have been made and documented (at least [Number] contact attempts), AND
- [Additional criteria — e.g. "the debtor is bankrupt, deceased, or cannot be located"]
Approval Thresholds
| Amount | Required Approval |
|---|---|
| Under [Amount] | [Manager/Controller] |
| [Amount] – [Amount] | [Finance Director] |
| Over [Amount] | [CFO/Owner] |
Accounting Treatment
Approved write-offs are recorded as bad debt expense in the period approved, per [GAAP/applicable accounting standard], and removed from active accounts receivable.
Continued Collection Efforts
[State whether the company will continue pursuing a written-off debt through a collection agency, and how any later recovery is recorded.]
Adopted by: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal or tax advice. Writing off a debt for accounting purposes doesn't necessarily forgive it legally — many companies continue pursuing written-off debts through collections, and any later recovery needs to be recorded correctly as income.*
Edit directly in the box above. Download PDF anytime — the docstoc.io footer is always included and cannot be removed.
What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 5 standard sections: Purpose, Criteria for Write-Off, Approval Thresholds, Accounting Treatment, Continued Collection Efforts
- 8 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Informal lending & reimbursements
Money changing hands between people or a business and its team, without a bank's paperwork.
FAQ
Is this bad debt write-off policy template really free?
Yes — this Bad Debt Write-Off Policy template on docstoc is free to view, edit online, and download as a PDF with no account or signup required.
What does this bad debt write-off policy cover?
This finance template includes Purpose, Criteria for Write-Off, Approval Thresholds, Accounting Treatment. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. This covers the standard structure, not the interest-rate limits, disclosure requirements, or tax implications that can apply depending on your state and the amount involved. Check those specifics with an accountant or financial attorney before you rely on it.
Can I edit the wording?
Yes. All 8 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.
Where can I find more free templates like this?
Browse more free finance and related document templates in the docstoc library at /document-templates/.
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