Liabilities
Liabilities are what you owe. Current liabilities include accounts payable, payroll obligations, current portion of long term debt, taxes payable, lease payments, rent payments, and, generally any obligation due in one year or less.
Long term liabilities are those obligations due in more than one year. Usually, long term liabilities include the long term portion of mortgages, notes payable, and any other debt.
Liabilites should be viewed in a positive frame of reference when they are used properly. Yes, companies extend accounts payable, max out on their line of credit and play the bank float. However, that is no way to run a business profitably. Every person or company granting you credit is extending their trust in you to pay what you owe. Recognizing that if you are not current on what you owe, if you are spending time assuring people they will be paid, pick up the phone and call me 727-587-7871. I am Steve Pohlit and I will help you.
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