<topic sku="core" tNum="287219" author="sallyh" xmlns="x-schema:hhTopicSchema.xml"><index><title>Create a liability account</title><category>accounts</category><klink type="prcdr">How do I create a liability account?</klink></index>
<content>
<extend>
<tease>Why?</tease>
<reveal>
<p>Use liability accounts to track money you owe, except for amortized loans and credit card debt. For example, you can track taxes you owe, short-term loans, or money you've borrowed from your parents. Tracking this information will help you keep track of your overall net worth and progress on getting out of debt. Use loan accounts to track your interest-bearing debt.</p>
</reveal>
</extend>
<ol>
<li>On the <emph>Accounts & Bills</emph> menu, click <emph>Account Setup</emph>.</li>
<li>Click <emph>Add a new account</emph>.</li>
<li>Click <emph>Not held at a bank, broker, or financial institution</emph>, and then click <emph>Next</emph>.</li>
<li>In the list of account types, click <emph>Liability</emph>, and then click <emph>Next</emph>.</li>
<li>Follow the instructions on the screen.</li>
</ol>
</content>
<footer>
<frgmnt sku="biz">
<extend>
<tease>How do I convert an existing personal liability account into a business liability account in Money?</tease>
<reveal>
<p>On the <emph>My Money Home page</emph>, click <emph>Business </emph> in the <emph>Choose a view</emph> box. Under <emph>Select an Account View</emph>, click <emph>View my Chart of Accounts</emph>. Click <emph>Add</emph>, and then click <emph>Account</emph>. Select the personal account you want to add to your business, and then click <emph>Add</emph>.</p>
