My company hires others to do portions of projects. We give them Purchase Orders based upon the Products and Services we have. I am setting up my products and services in QBO now, should the services we purchase be assigned to an expense account or a liabilities account? We pay the Purchase Orders a little at a time as the project progresses. I believe this makes this a liability because it is something we will pay, but once paid it is an expense. Do I assign it directly to an expense account, or to a liabilities account?