A write-down reduces a bill before sending (discounting worked value); a write-off forgives an amount already billed but uncollectible. Both shrink revenue — tracking them protects realization.
The example
$10k worked, $1.5k written down.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Worked − write-down | |
| 3 | Net billed | → $8,500 |
The formula
The formula:
How it works
How it works:
- A write-down reduces worked value before billing —
worked − write_down= net bill. - A write-off forgives an already-billed amount —
billed − write_off= net receivable. - The write-down % = write_down ÷ worked value — track it per matter and per timekeeper.
- Chronic write-downs point to over-staffing, scope creep, or rates above market for that work.
Write-down vs write-off is a timing distinction with different lessons. A write-down (pre-bill) says the work was worth less than the time logged — a pricing or efficiency signal. A write-off (post-bill) says billed work won’t be collected — a client-selection or AR signal. Tagging each entry by reason and totalling with SUMIF turns vague “leakage” into a fixable list.
Try it: interactive demo
Worked value and write-down.
Variations
Write-down %
Share discounted:
Net receivable
After a write-off:
Total by reason
Tag and sum:
Pitfalls & errors
Down vs off. Write-down is pre-bill; write-off is post-bill — different bases.
Tag the reason. Without reasons you can’t fix recurring leakage.
Hits realization. Both reduce realized revenue — track the trend.
Practice workbook
Frequently asked questions
How do I calculate a write-down in Excel?
What's the difference between a write-down and a write-off?
How do I total write-downs by reason?
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