Liabilities refer to the financial obligations of your business, representing amounts owed to external parties. They can be further classified as:
- Current Liabilities: These are obligations expected to be settled within 12 months. They include items like loans, credit card bills, unpaid invoices, GST, taxes, and wages owed.
- Long-term Liabilities: These are obligations expected to be settled after 12 months. They may include long-term loans and other extended financial commitments.
You can record and track your liabilities entered into Thriday using the Asset and Liability Register.