Liabilities, on the other hand, are the financial obligations or debts your business needs to settle down the line. This could mean the money you owe to suppliers, taxes you need to pay, or wages for your employees. While assets can become less valuable over time (like a car losing value as it gets older), liabilities stay the same until you settle them. Monitoring both assets and liabilities offers an accurate snapshot of your company's financial health and helps in making informed decisions.