Chapter 17. Recording Liabilities

What You'll Do

Manage Accounts Payable

Record Payroll Tax Accruals

Set Up Credit Card Accounts

Account for Deposits or Retainers

Record Loans

Use the QuickBooks Loan Manager

Record Loan Payments

The term liabilities refers to your company's debts. QuickBooks groups liabilities into four types of accounts:

• Accounts payable These are the bills you owe currently.

• Credit card This is the balance due on company credit cards.

• Other current liabilities This represents payroll owed to employees, taxes payable, advances, deposits, subscriptions your customers have paid, loans from shareholders, and other debt you expect to pay back within one year.

• Long-term liabilities These are debts that won't be paid back within the year.

Some liabilities are paid quickly. Utilities, for example, are paid each month, and new bills come in to take their place. Other liabilities linger; mortgages stretch out over decades. Credit card balances, although constantly refreshed, might never seem to go away.

Companies are required to report their liabilities on financial statements so investors and lenders have a clearer picture of the value of the company.