If a customer has filed for bankruptcy and you will not be receiving payment, you can record this in Estimate Rocket so your books stay accurate. Follow the steps below.

Step 1: Add a Line Item for the Loss

1. Go to your project and add a line item from your Discount template.
2. Choose Discount (Dollars) as the type.
3. Enter the total project amount as the discount.
4. Create a group and name it Bankruptcy Dollars.
5. After saving, rename the line item from “Discount Dollars” to Bankruptcy Dollars so it matches the group.

Step 2: Delete Any Invoices

• Go to the project’s invoices and delete all invoices.

This ensures the project is marked as unpaid and prevents future billing.

Step 3: Add Internal Notes

• In the project’s internal notes, add something like:
  #bankruptcy-loss

This will help you quickly find and track these projects when preparing your business taxes.

Step 4: File as a Loss for Taxes

• When doing your Business Taxes, search for #bankruptcy-loss.
• You can then record the project as a business loss.

✅ That’s it! You’ve now recorded the bankruptcy correctly in Estimate Rocket and prepared for tax reporting.