Written-off balance collection needs a record that separates the accounting treatment from continuing recovery activity. An internal write-off entry does not by itself explain whether a debt was waived, settled or remains subject to collection. Ask the accountant and authorised decision maker to clarify the accepted position.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Identify the approved entry

Keep the invoice, customer ledger, write-off approval and reason. Note whether the entry concerns the whole balance, a disputed component or an allowance rather than a completed write-off.

Check for a settlement agreement or other instruction affecting recovery. Do not send a new demand without considering what the company already agreed.

Align the collection record

Tell the responsible collector how the account is represented in the books and which actions remain authorised. Keep disputed amounts and promised payments separate from cash received.

Ask the accountant how later recoveries should be recorded. Do not reopen or duplicate the original sale simply because a payment arrives after the write-off.

Example: a partial receipt arrives later

The company removed an overdue balance from its active ledger, but the customer subsequently makes a payment. Match the receipt to the original transaction and the accepted recovery treatment. Leaving it as unexplained income or posting another full invoice can obscure the history.

Preserve the distinction for review

Retain the original debt, approved entry, collection instructions and recovery evidence together. Review GST and tax consequences separately where relevant; an internal write-off does not automatically establish tax relief. Where legal rights need interpretation, obtain assistance through advisers from associated law firms.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.