Debiting a liability account is the process of adding funds to a business’ financial accounts that represent money owed by the company. This could include, for example, owing money to suppliers or customers, or accruing interest on loans. Debiting a liability account increases the value of that account, as it is effectively showing an increase in the amount owed. The opposite of debiting is crediting, which means decreasing the value of the liability account when payments are made towards the amount owed. When managing finances, it’s essential to understand both debiting and crediting, as it helps businesses ensure their books are balanced and up-to-date.