Glossary
Liability
Definition
A liability is an amount the company owes to someone else, to be paid or settled in the future. Money owed to suppliers and to the owner are typical liabilities.
Example. An invoice of €600 from a supplier, not yet paid, is a liability of €600 until the payment is made.
Why it matters for your company
Liabilities tell you what the company must pay. A growing liability to the owner, for example, means the company is using the owner's money.
Where you see it in Sapita
In the balance sheet, in the liabilities section, and in the owner loan view.