Carrying a dead invoice on the aging report for a year does not make it more collectible; it inflates AR and trains the team to ignore old balances. Once a final notice deadline passes with no engagement and an agency is not worth the fee, write it off. Across US B2B, roughly 5% of long-overdue invoices end up as bad debt (Atradius, 2025).
Glossary
Write-off
Also: bad debt · bad debt expense
A write-off removes an uncollectible invoice from accounts receivable and records it as bad debt expense.
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