Current account
A current account is a running account on which mutual claims and debts are carried forward and offset, so that only the balance is owed.
Definition
In bookkeeping every receivable and payable account is a current account: invoices, payments, credit notes and discounts accumulate, and what is owed is the balance. The same applies to the bank current account and to shareholders’ loan accounts.
For a shareholder’s current account a tax question is added: an account permanently in debit can be treated as a hidden profit distribution or a private withdrawal — with interest consequences. Movements should therefore be justified and bear interest.
Where to read it
What the software must be able to do
Check whether the software keeps a running account with balance and statement per partner, whether interest can be calculated on it, and whether claims and obligations of the same partner can be offset.
Checked Aug 2026
More terms under Invoicing, payment and banking: Advance payment Allowance for doubtful debts Bad debt camt.053 Cancellation invoice Cash discount Certificate of shortfall Credit note Creditor Debt enforcement Debtor Default interest Delivery note Dunning eBill Final invoice IBAN Invoice number ISO 20022 / camt Open items pain.001 Part payment Payment term Pro forma invoice QR reference QR-bill QR-IBAN Quotation Receipt Tips TWINT as a payment method Visitor taxes