Is line of credit long term or short term liabilty?
WaveWaveWave
Member Posts: 10
Everywhere Ive read it says it's a short term. Why in Wave is shown under long term liability?
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WaveWaveWave
Member Posts: 10
Everywhere Ive read it says it's a short term. Why in Wave is shown under long term liability?
Comments
Hey @WaveWaveWave! Great question here. Within the Chart of Accounts in Wave, there is an option for Loans & Lines of Credit specifically, under the 'Liabilities & Credit Cards' section. You should likely use this as the category for this account. Where are you seeing this set up as a long term liability? Is this something that you'd added yourself? Would love to see what you're seeing!
Hello @ConnorM ! When I put Loan of credit under the "Loan and line of credit" section then in balance sheet it showes it in "Long term liabilites". Here , I made a mockup for you:
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Then this number is kinda skewed:
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Shows I am in much better shape than actually I am.
Hey @WaveWaveWave. Thanks for reaching back out with this context here. As far as why this is pulling in as a long term liability, this is not something that the Support Team entirely has an answer for, as it falls outside of our scope. You may want to speak with a professional accountant on this in order to determine the 'Why' here!