In accounting, why does it make a difference whether liabilites are reported as current or long term?

Well the financial statements are there to portray the activities of the business, so it just lets them know what short term liabilities they have to pay off, which leads to better decision making and planning. Otherwise, in accounting terms, it wouldn't make too much difference as the figures in the statements would be the same

Short term liabilities are those that would be paid in 1 year or less. Long term liabilities would be longer than 1 year. Long term liabilities have a current portion that is often reflected on financial statements. The current portion of a long term liability is the amount due in 1 year. The current portion is reflected as a credit in the short term liabilities section and as a debit in the long term section of a financial statement.