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Liabilities Accounts

Your liabilities are the same as your debts, and these include everything your company owes other companies or persons. Your liabilities are grouped into three types:

  1. Short-term Liabilities
  2. Long-term Liabilities
  3. Other Liabilities

Short-term Liabilities

Short-term liabilities are debts that are due for payment within a reasonably short time. Short-term liabilities include the following groups:

  1. Credits
  2. Withheld Taxes
  3. Outstanding VAT
  4. Accounts Payable
  5. Other Short-term Liabilities

Credits

Credits include bank overdrafts, credit card debts and written checks etc. These are credits that your company uses in the very short-term.

Withheld Taxes

These are taxes you pay on behalf of your employees. An example would be UIF contributions.

Outstanding VAT

This is value-added tax that you have not yet paid to SARS.

Accounts Payable

Accounts payable is what you owe your suppliers.

Other Short-term Liabilities

These are other debts that you have to pay in the near future.

Long-term Liabilities

Long-term liabilities are loans that your company has. This would be bonds and mortgage loans and other loans that you pay off over a long period of time.

Other Liabilities

These are liabilities that your company has to its owners and other related parties.