The accounts that track your congregation’s debts are called Liability Accounts. You can generally divide liabilities into short-term and long-term debt.
» Short-Term Liabilities
Short-Term liabilities are obligations you plan on paying off in the near future and are normally smaller in size. They can include payroll taxes that have been withheld but not submitted, or offerings received for other organizations that have not been remitted.
» Long-Term Liabilities
Long-term Liabilities are obligations that normally take years to pay off. Your congregation probably has long-term debts such as a mortgage or a building addition loan.
- The liability accounts can be found in the Accounts grid.
- Access the accounts grid by going to “Accounts” in the menu bar, choosing Account Types, and the selecting “Liability.”
- You can also click on the “A” in the toolbar and change the account type filter at the bottom to “Liability.”
- To add a liability account, click the Add button.
- Type in the name of this account.
- Key in the beginning balance if there is one. You may also choose to journal entry that balance in so you have a better audit trail.
- Now choose or add the grouping categories you want. If you don’t choose to group this liability account, you will still need to pick a sequence number.
- When you are finished, click OK to save the account.