Credit Memos, Write-Offs, and Revenue Adjustments Done Right
Written by Harry Prabandham
Curated by Rubric Financial
Last updated
1 / 5
Three Adjustments That Get Confused
- Credit memos, write-offs, and revenue adjustments are distinct transactions that founders often blur together in the books.
- A credit memo reduces what a customer owes, usually for a billing correction, discount, or service issue.
- A write-off recognizes that a receivable you still believe is valid will simply never be collected.
- A revenue adjustment changes the amount of revenue you recognize, and treating one as another distorts both revenue and receivables.
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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