What is a current account?
Current account Derives from Italian Conto “Invoice” and corrente “expiring.” It is therefore a Current accounting account of business partnersto manage mutual claims and liabilities. Current accounts are therefore required for various transactions. A classic example of this would also be a current account.
What is a current account?
Current accounts are therefore common among business partners to to process receivables and liabilities of debtors and creditors. It is contractually regulated in which period the interim balance is determined and others Rights and obligations of contract partners. For example, whether it is either paid at the end of the month or billed next month.
They are particularly suitable when companies regularly from a supplier furnishes become. The receivables then have a specific amount. Conversely, this means that special demands or those that are unexpectedly high billed once become. Everything What is not contractually agreed is, is therefore not posted to the current account.
What is now ongoing with a current account is the balance, which shows how the relationship of Bank credits and is burdens. Business partners incur receivables and liabilities, which determine the balance.
Special features of accounts receivable and accounts payable
Current accounts are Subbooks managed and for creditors and Debtors will individual accounts or current account accounts Managed. An alternative term is therefore also accounts payable and accounts receivable. As part of Financial statements Will they finalized. They are therefore particularly common for companies with Duplicate bookkeeping.
The prerequisite for opening a current account is the age of majority. Should also a Current account credit must be set up a party but businesswoman or businessman be. Die Current account interest This amounts to 6 to 12 percent. The credit takes effect as soon as the balance is not a credit but slips into the negative.
