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I have a case which will ultimately become pro bono. My question is related to billings best practices. Do you just quit billing records or do you continue to track hours/billings and write it off?
I have done it both ways, but ultimately, I have decided to keep track of hours and write it off. I do this primarily for my own records so I know how much time I have spent on those projects. I also feel like it gives me added protection should there ever be an issue about what I did or how much time I spent on it.
I’ve asked my accountant about this and since I’m on a cash basis for bookkeeping, it’s not really a write-off. I just don’t collect any income. I still track the work and note how much time, but put N/C after the detail and zero hours in the hours column. Sometimes I use this method with my regular clients if I feel that billing them for a short consult is not appropriate.
Is the original question about taking a write-off (accounting/IRS term) or about how to display on the invoice? I got the impression it was more about how to display it on the invoice/statement than it was about tracking in the company’s bookkeeping.
Thomas – the question is not about the mechanics of Quicken or other recording method for the pro bono work. But rather about whether to track is as a write off or just no longer track it.
Thanks for the clarification, Amy.
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