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Accounting
Write-Off
Removing an asset or debt from the books because it has no value or is uncollectible.
Write-offs can be for bad debts, obsolete inventory, or impaired assets. They reduce reported profit but are sometimes necessary for honest accounting. Tax rules often allow write-offs as deductible expenses.
It's admitting that the money or item is gone and officially crossing it off the list.
Real world: A company sells goods on credit but the customer goes bankrupt and never pays. The company writes off the receivable as a bad debt, reducing both assets and profit for the period.
💡 A write-off is painful but honest — it clears the books of things that no longer exist.