Inventories that have been recorded in accounting terms but cannot be sold due to obsolescence, damage, or other reasons are referred to as inventory reserves. A write-off is when a portion of inventories are deemed either unsellable/unusable or of no added value and so the cost is written off from the financial records. To put it in simpler terms, an inventory reserve is a temporary step that allows organizations more time to liquidate their assets, while a write-off is a definitive action where the value of an asset is removed from the company’s books permanently. This can result in increased tax liability as well as a decrease in overall stock value.