Liability Insurance for Vending Machine Company

Thanks for coming by, @justin cook.

I'll share the steps on how you can record your liability insurance in QuickBooks. You'll want o create a liability account first. This is where you keep track your liability payments.

Here's how:

1. Go to Accounting.
2. Choose Chart of Accounts.
3. Tap New.
4. Select Other Current Liabilities as Account Type, and then Other Current Liabilities as Detail Type.
5. Enter a Name. Then Number, and Description fields are optional.
6. Click Save and Close.

After creating an account, record the down payment and the rest of your payments by creating an expense transaction. See this guide for more information: Enter and manage expenses in QuickBooks Online.

With the above steps, you're able to record your liability payment in QuickBooks. Here's a link that'll guide you with your financial reports: Reports included in your QuickBooks Online subscription.

Don't hesitate to reply to this thread if you have follow-up questions about recording liability payments. I'm more than happy to assist you. Take care and have a great day ahead.

@justin cook  

Do not follow the instructions of @ShiellaGraceA .  She just instructed you to record a liability and then pay it off.  If you follow those instructions, you will not record a business expense for your insurance.

When you make the down payment and monthly payments, you can record a bill and then pay the bill or you can just write a check and assign it to your insurance expense account.  The difference is timing: if you're a cash basis taxpayer, you can do it either way.  If you're an accrual basis taxpayer, enter the bill and then pay it when due.  There is no need to record anything related to the future payments due.  Just enter the bills and pay them or write a check at the time payments are due. 

But

But aren’t insurance payments a  liability since it’s something I will never be making money off of or an expense that is needed to run a business