Current liabilities are debt obligations due within one year. Some examples of current liabilities that appear on the balance sheet include accounts payable, payroll liabilities, accrued expenses, short-term notes payable, income taxes and interest payable, accrued interest, payroll taxes, utilities, rental fees and other debts. They can be settled with current assets or by swapping one current liability for another one.
Calculating Current Liabilities in Excel
Say company ABC has current liabilities that include the following:
- Accounts payable – $38,000
- Accrued wages – $90,000
- Accrued expenses – $67,000
- Rental fees – $240,000
- Loans – $50,000
- Other debts – $56,000
Type "Current Liabilities" in cell A1, then "Accounts Payable," "Accrued Wages," "Accrued Expenses," "Rental Fees," "Loans" and "Other Debts" in the cells A2-A7. In cell B1, enter the year for which you are calculating the total current liabilities. Enter the dollar amounts in column B next to their category (38,000 in B2, 90,000 in B3, etc.).
To calculate the amount of total current liabilities, label cell A7 as "Total Current Liabilities," select cell B7 and enter "=SUM(B2:B7)" into the formula bar. This will add up the current liabilities listed and give you the total amount for that year.
You can do this for multiple years and compare whether the company's liabilities have been increasing or decreasing.
(For related reading, see "Current Liability Basics.")