Hi @rhianak
Thank you for your post. I'd like to extend you a warm welcome to the Community Forum. I hope you find it a valuable resource.
In this regard, I would recommend speaking with your Accounting Advisor as there are a few different ways you could do this. As certain types of categories would require both liability and expense accounts added to them. The main difference between liabilities and expenses is that liabilities impact your equity and expenses impact your cash flow. Liabilities are financial obligations that detract from your business equity. Whereas expenses detract from your business income. And also one difference between them is, Expenses are costs that businesses typically pay for as they occur, while liabilities may be both short-and long-term. Expenses can become liabilities if payment is delayed or if you take out a loan to pay for an expense.
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Best Regards,
Cel
