: what does ” write off ” means in business?


hello everyone

I work as a remote graphic designer , I had three shifts with the company im working with but I didn’t receive any work or get contacted by them during those three shifts.

when I asked my manager that I was on the chat but didn’t receive any briefs or work to do during those 3 shifts he told me that I should check in before every shift and that they gonna write off those past three shifts.. so I don’t know if it’s going to be counted for me or not as I need to fill the payment at the end of each month…

I attached the message he replied with in our conversatio so you can have a full aspect of what he said

View post on imgur.com

thank you !

In: 1

For a business to “write off” something, it means they will no longer pursue income from it. That means *their* income, not yours.

I read the text chat. If your manager is using the term correctly, they mean you’re going to be paid for those shifts, despite not having work to do.

It depends on the context.

To ‘write-off’ something for tax purposes means to count it as an expense, which reduces your taxable income. So, for example, if you pay for an expensive dinner for a client, you can write-off 50% of that as cost of doing business and not have to pay tax on that amount.

To ‘write-off’ an asset means that you declare it no longer has value and takes the operating loss. So, for example, if a client owes you money (which is an asset in financial accounting) and you realize they can’t pay, you reduce the value of that asset to zero. You will _also_ get to write off that loss on your taxes.

Comes from accounting practices.

Let’s say someone owes you 100$. As long as you expect that money back, Generally Accepted Accounting Principles require that you keep track of it (it would be listed as an asset you have).

So every year, in your accounts summary, you’d have the line So-and-so owes 100$ written ON your books.

Now let’s say after 10 years, you basically lose every hope of ever seeing this cash back (the person disappeared from your life, went bankrupt, you’ve forgiven the debt, anything). Then you would basically put the assets in gain and loss (pertes et profits, not sure what the term of art is in English) as a 100$ loss. From then on it’s “written off” in the sense that it doesn’t need to appear in your books anymore.