Bookkeeping Services and Current Liabilities | How Bookkeepers Help (2024)

How a Professional Bookkeeper Can Help

Bookkeeping Services and Current Liabilities - How a Professional Bookkeeper can help you understand your current liabilities.If your first question is “Whatis my businesses current liabilities?” then you know your are in need of professional bookkeeping services as an experienced bookkeeper will absolutely make surethat you have a very clear understanding of not only what current liabilitiesmean but also what your businesses current liabilities are.

Investopedia.comdefinesCurrent Liabilitiesas “a company's debts or obligations that are due within one year” and because it is due within a year it is essential that you either have the bookkeeping knowledge or thebookkeeping servicesto take care of it. And, just to make sure we are all on the same level playing field, current liabilities for your business appear on your company'sbalance sheetand include short term debt,accounts payable, accrued liabilities and other debts.

Essentially, bookkeeping services and current liabilities are bills that are due to creditors and suppliers within a short period of time.Normally, companies withdraw or cash current assets in order to pay their current liabilities. These can range from loans you took out for the company all the way to the mortgage on the facility.

However, you need to take into account that as your company grows; you are most likely going to take on more current liabilities - essentially as your business has the financial structure and ability to handle increased payments. As your company’s financial activities and financial infrastructure change it becomes a challenge to stay on top of all your current liabilities and how it influences your company’s financial health.

When you reach this stage in your businesses life cycle you need to seek out the outsourced bookkeeping services of a professional bookkeeper to help you interpret and comprehend exactly what your businesses current liabilities are and how it affects your business.

Bookkeeping Services and Current Liabilities - Accounts Payable

AccountsPayable is your businesses most common form of current liabilities that yourbookkeeping services will help you with. Whereas accounts receivable are thebills and payments you receive from your customers and clients, accounts payableis what you have to pay out. These are the payments you need to make onproducts, material and outside services.

For example, if you pay for sheetmetal for the fabrication of products inside of your factory, the amount youneed to pay for this sheet metal is filed under accounts payable. Often knowinghow to categorize your different accounts payable can be a challenge without thehelp of a professional bookkeeper and his or her knowledge ofbookkeepingservices and current liabilities.

Payroll and Accrued Benefits

Thisis generally a stable form of bookkeeping services and current liabilities - although it can fluctuatewhen hiring, promoting and providing raises. It covers the salary you owe yourworkers and the bonuses and benefits you must pay during a given time period.

Yourbookkeeping services will help you to organize these different payrolls andaccrued benefits. This helps you to know where the company’s money is going andhow much you are paying different employees inside the company.

Long Term and Short Term Debt

In Conclusion

Monitoringyour debt and staying on top of current liabilities is very important for yourbusiness. If you are not able to do this, you might fall behind, start to incuradditional interest and find it difficult to repay some of these loans andother liabilities.

With the help of your bookkeeping services, you have accessto a professionaladviserwho can walk your business through the best wayof handlingthe liabilities and what priorities you need to make when it comesto paying back the debt and keeping your business financially responsible andstable.

Author

Stephanie Horne is an experienced bookkeeper and Enrolled Agent. She is the owner and founder ofTax Avail, Inc. inRohnert Park,Californiaalong with this website and has over 20 years of in person, virtual and outsourced bookkeeping/accounting and tax preparation experience with businesses of all sizes.

Her love and passion is to work individually with business owners and families to help alleviate any financial stress or concerns by helping them to understand and have better control of their income, expenses, cash flow, and tax liabilities.

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