Accounting glossary
What is current liability?
A debt due within a year: supplier payables, sales tax collected but not yet remitted, the current slice of loans. Sales tax deserves special respect — it was never your money, just money you are holding.
Example
You owe suppliers $37,929 and hold $13,078 of sales tax collected but not yet remitted. Both are current liabilities.
The tax deserves particular respect: it was never your money. Spending it feels like cash flow and is really a loan from the government you did not negotiate.
In SeroBooks
GST/HST/PST payable accounts are seeded and posted automatically per sale. Canadian sales tax →