[GNC] Liabilities vs Expenses.

[Michael Hendry]

> On 21 Nov 2024, at 19:08, Griffin <griffin at bernevyl.com> wrote:
> 
> I'm no accountant, so I'm wondering what the difference is between liabilities and expenses, and the importance of that difference.

Nor I, so my comments are not definitive.

> 
> I currently have GnuCash set up so that everything I spend is an expense. Would it be "better" to have the recurring bills as liabilities, i.e. rent, utilities, etc. If that is the case, would I place a debt onto the liability at the statement date, and then payment when I make a payment.

Liabilities accounts are used to record money you’re going to have to pay at some time in the future, and I use them from credit and debit cards in my personal Gnucash accounts.

Credit card spending is recorded as a transaction between Liabilities:Mastercard and Expenses:Groceries (or whatever) and the Liability disappears when you pay off the credit card (recorded as a transaction between your bank (e.g. Assets:Current Assets:Bank) and Liabilities;Mastercard). 

Michael

> 
> Does it really make any difference to anything?

It means you can reconcile expenditure on your credit card with the credit card statement.

> 
> Thanks
> 
> Griffin
> 
> 
> -- 
> This email has been checked for viruses by Avast antivirus software.
> www.avast.com
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.