Recording Liabilities in Accounting

With ChurchTrac, you can track assets such as checking and savings accounts. But you can also use the software to record and track liabilities. This article shows how using a credit card as an example.

Creating your Liability Account

After clicking the "Add" button on the Accounts screen, name your liability account, select the "Liability" Account Type, and insert your beginning balance. For this example, we used a "Credit Card #2":

Your starting balance amount will be a positive numer, as the software will automatically make liability accounts a negative.

Use your statement beginning date and assign your liability account to the Category and Fund of your choosing.

Edit your beginning balance transaction to include the categories that make up the expenses.

Liability Transactions

To enter liability transactions, select the date and "Expense/Charge" Transaction Type, enter your reference, and add/select your Payee/Description. You can add multiple transactions.

Liability Payments

To make a liability payment, create an account-to-account transfer from your checking or savings account to the liability you wish to make a payment on. Here is an example with the credit card account we made:

For additional help with liabilities and ChurchTrac, reach out to our support team.