writeoff

Vocabulary Word

Definition

'Writeoff' is when a person, company or organization accepts that something, typically money, has been lost. It's more often used in finance and accounting where bad debt or broken assets may be written off.

Examples in Different Contexts

In business accounting, managing 'write-offs' is crucial for financial accuracy. A finance manager might say, 'A write-off for uncollectible receivables will provide a more accurate representation of our company’s true financial position and performance.'

Practice Scenarios

Operations

Scenario:

The recent storm damaged a big portion of our inventory in the warehouse. We need to assess the impact on order fulfillments.

Response:

Let's do the damage assessment swiftly, so we know the total value of goods we might need to write off.

Accounting

Scenario:

Multiple attempts to collect the outstanding dues have been unsuccessful. We may need to discuss with management about the next course of action.

Response:

If we cannot recover this money, we may need to write off these invoices to clear the accounts.