Glossary
Liability
A liability is what you owe others, such as supplier bills, loans and tax due, which you must settle later.
What it means for a shop owner
Each liability matches an asset or cost that came into the shop. Watch the due dates so you do not pay late and face penalties. Liabilities growing with no rise in income is a warning sign.
A worked example
A supplier bill of 900, a loan of 2,000 and tax of 100 make 3,000 in liabilities.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes