Liability Account Classes

The liabilities account group refers to any amount you owe to another business, bank, or persons.

Each account group in Sage Simply Accounting can be further divided into account classes. All accounts grouped from 2000 to 2999 are liabilities. Unless your accountant specifies otherwise, use the default account group Liability.

Account Class	Description
Liability	Any amount that you owe. This class encompasses all liability classes and can represent any type of liability.
Cash	An account set up for over-draft purposes. We do not recommend you use it as a liability.
Bank	An account set up for over-draft purposes. We do not recommend you use it as a liability.
Credit Card Payable	An account set up for over-draft purposes. We do not recommend you use it as a liability.
Accounts Payable	Amounts owed to vendors for goods and services provided.
Other Payable	Other amounts you owe. Sometimes they arise from transactions outside of the company's regular business.
Sales Tax Payable	Amounts owed to the government based on sales taxes collected.
Payroll Tax Payable	Amounts owed to the government based on taxes they require you to deduct from employee paycheques.
Employee Deductions Payable	Amounts owed to others based on the additional deductions taken from employee's paycheques.
Income Tax Payable	Amounts owed to the government based on the income of the business (not employees).
Short-Term Debt	Debt owed to a creditor that you will repay in the short-term. Debts usually represent a more formal agreement than a liability.
Current Liability and Other Current Liability	Amounts owed to a creditor that you will pay in the short-term, usually less than one year.
Other Non-Current Liability	Amounts owed that you will not pay in the short-term and which are not otherwise classified.
Debt	All debts, whether short-term or long-term.
Deferred Revenue	Amounts received for sales that have yet to be completed. For example, for transactions conducted over the Internet, you usually receive payment before delivering the goods or services.
Long-Term Debt	Debt owed to a creditor that will be paid over the long term, usually over one year. Mortgages, for example, are generally considered long-term debts.
Deferred Income Tax	The accumulated difference between income tax calculated on accounting income and taxable income.
Long-Term Liability	Amount owed to a creditor that you will pay in the long-term, usually over one year.
Other Liability	Any liability account that doesn't fit into any of the above categories.

Liability Account Classes

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