Uncollectable fee write-off checklist
Writing off uncollectable fees requires proper governance, documentation, and GST adjustment. This checklist is for finance teams and practice managers managing fee recoveries and write-offs.
This is a 12-step uncollectable fee write-off checklist. It covers recovery steps, governance approvals, GST adjustment, and record-keeping.
The checklist
Confirm debt status
Confirm the debt is more than 90 days overdue and all routine follow-up has occurred.
Review reminder history
Review reminder and demand letter history on the debt.
Confirm letter of demand sent
Confirm a formal letter of demand has been issued and response time expired.
Consider costs assessment
Consider whether costs assessment proceedings are warranted before write-off.
Consider debt recovery action
Assess the commercial viability of debt recovery proceedings.
Assess client insolvency
Check for any bankruptcy or liquidation affecting recovery.
Prepare write-off recommendation
Prepare a written recommendation with reasons and quantum.
Obtain governance approval
Obtain approval from the required authority per firm delegation matrix.
Action write-off in system
Action the write-off in the practice management system.
Adjust GST on write-off
Adjust GST claimed on the original invoice using a bad debt adjustment.
Close client ledger
Close the client ledger and archive the matter.
Log for learnings
Log the write-off for matter intake and credit control learnings.
When this checklist applies
Use when a client debt is assessed as uncollectable and write-off is proposed.
Common pitfalls
- Write-off without exhausting recovery options
- Governance approval not documented
- GST adjustment missed
- Client ledger not closed
- No learning captured for future prevention
Run this checklist on a real matter
Quillio can assemble write-off recommendations and track approval workflow. See /practice-areas/firm-management or start a free trial.
General guidance for uncollectable fee write-offs. Apply firm financial governance and tax rules.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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