Writing off or sending to collections
Not every invoice gets paid. Inspector Studio provides two statuses for invoices you cannot collect: In Collections (when you have escalated the debt to a third party) and Written Off (when you have decided to absorb the loss). Here is how and when to use each.
In Collections
Use the In Collections status when you have sent the outstanding balance to a collections agency or attorney for pursuit. This flags the invoice in your records so you know external action is underway.
How to mark an invoice as In Collections
Open the invoice.
Click the options menu (three-dot icon).
Select Mark as In Collections.
Add a note if you want to record the collections agency name or the date the account was sent.
The invoice status updates to In Collections. You can still record a payment if the collections process results in recovery — the invoice remains active in that sense.
What happens next
Inspector Studio does not communicate with collections agencies — marking the status is purely a recordkeeping action. You manage the external collections process through your agency or attorney. If and when they recover funds, record the payment against the invoice in Inspector Studio.
Written Off
Use Written Off when you have decided the balance is uncollectible and you want to close the invoice without expecting payment. This is a final step — you are acknowledging the loss for your records.
How to write off an invoice
Open the invoice.
Click the options menu (three-dot icon).
Select Write Off.
Optionally add a note (reason, date, context).
Confirm.
The invoice status changes to Written Off. It is no longer shown in your active outstanding balance.
Write-offs and accounting
Written-off amounts may be deductible as bad debt for tax purposes depending on your accounting method and jurisdiction. Consult your accountant for guidance on how to handle written-off invoices in your books. Inspector Studio records the write-off but does not generate accounting entries automatically.
Reviewing your bad debt
To see all invoices marked as written off or in collections, go to the Invoicing list and filter by those statuses. This gives you a picture of historical uncollected revenue for your records.
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