Liabilities: Accounting Speak for Money Your Handmade Business Owes
Liabilities are the money your handmade business owes — like credit card balances, sales tax collected but not yet paid, supplier bills, or equipment loans. In this post, we’ll break down what liabilities mean in plain English, how they show up in your Chart of Accounts, and why tracking what your business owes helps you avoid accidentally spending money that’s already spoken for.