Bad Debt Provision Calc Template

Description
What is bad debt provision? This is a provision to cater for future potential liability occuring by some of your companies debt resulting in not being paid for and therefore incurring a loss


Why provide for bad debts? It is prudent to make a provision for any doubtful debts upon assessment of the likelihood of that debt not being paid. This will ensure that the future potential loss is already covered in the books and will not result in an expense in the future months or years


It is very important and part of the IAS and IFRS standards to make a provision for bad / doubtful debts. 


This template will allow you to effectively control and compute the debts in your Accounts Receivable aging and consider making a provision for bad/doubtful debts to ensure capturing the potential future liability in your books.


The template can be used on a monthly basis to review and revise your provision and always have the potential liability covered in the books.


It will help you assess debts in all aging categories for you to assess and determine whether a provision needs to be made for any of these debts
Simple and easy to use yet highly effective!
Enjoy this free template!