What Is Liability Bookkeeping?

Liability bookkeeping is the process of recording, updating and keeping track of the bills or payment owed by a certain company to another individual or another company. It is a detailed process which needs takes a lot of time and is very important for companies.

Liability bookkeeping is important for certain companies in a way that it helps them keep track what payment needs to be paid in order to avoid any problems especially if it’s a subscription that needs to be paid monthly. It also helps track what percentage of earnings of a certain companies go to miscellaneous bills and have a complete idea what are the expenses of the company.

During the early times, this is done on a large notebook which has tables where the bookkeeper will log the entire monthly or if not a weekly expense of the company. There are also bookkeepers who work for private individuals who have different business expenses that need to be updated. Continue reading »

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