Bad Debts

keeping an eye on debtors and unbilled work is very important to your cash flow. To claim bad debts money must be outstanding for 6 month or longer from a client before it can be deducted as an expense. Should you receive the money after you have claimed it as a bad debt expense then the money needs to be declared as income again. We will need to discuss with you exactly what needs to be identified and the basis of valuation.