When running a business, it’s important to keep track of the money coming in and going out. Increase A Liability Debit Or Credit is a phrase used to describe the bookkeeping practice of recording any changes made to your company liabilities. A liability is any amount that is due or owed by one party (the debtor) to another (the creditor). When you increase a liability debit, you add a new entry to your books that records the money owed; and when you increase a liability credit, you make an entry to reduce the amount owed. Bookkeeping with Increase A Liability Debit or Credit helps you stay on top of your business finances and ensure everything is up-to-date.