How should an uncollectible invoice factor into MRR calculations?

Generally, you take some reserve ratio for bad collections. It’s often fairly small once you have data to back it — a few percent.

Once you have a reserve (which will also decrease your MRR each month by the amount of the reserve), you can then write off an unpaid customer or two and match that against your reserve.

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Published on July 26, 2018

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