Bad debts or loans significantly affect the finances of every economy and can weaken the financial landscape of the cash market. Bad loans or bad debt are not limited to financial institutions. This GhanaWeb Business article aims to help businesses and financial contributors understand what bad debt entails and, in particular, how to write off bad loans. Adhering to proper procedures for writing off bad debts is essential for businesses to maintain compliance with accounting standards and tax regulations. Writing off bad debts is crucial for maintaining accurate financial reporting, as it reflects the true value of accounts receivable.
