Company Credit Card

This Current Assets code records company credit card. As an asset account, it normally carries a debit balance: debit entries increase the balance and credit entries decrease it.

Real-world examples

Field sales and multi-cardholder businesses

A business with several sales reps or site managers each holding a company card generates multiple statements to reconcile every month, with spend coded across different nominal accounts depending on what was bought — fuel, subsistence, client meals — rather than sitting as a single lump sum.

Owner-managed business

In a small owner-managed company, a single card is often used mainly by the director for ad hoc purchases and travel, with the balance cleared in full each month by direct debit from 1200 (Bank) — a simple, low-volume account compared to a larger business's multi-cardholder setup.

Consultancy or agency with client entertaining

A consultancy or agency running up client entertainment costs on a company card should note that input VAT on business entertainment of clients — as opposed to staff — generally can't be reclaimed at all, regardless of what the receipt shows. It's a common area for VAT errors precisely because staff and client entertaining often sit on the same card statement.

Commonly confused with

Because code 1235 (Cash Register) sits right next to this one in Current Assets, it's a common mis-posting target. Code 1240 is specifically for company credit card, while 1235 covers cash register — similar in nature, but keeping them separate is what makes the current assets section of your management accounts meaningful rather than a single lumped total.

What a mis-posting here costs you

Because Company Credit Card sits within Current Assets, an error here overstates or understates working capital on the balance sheet rather than affecting reported profit — it won't move the bottom line, but it can make the business look more, or less, liquid than it actually is.

Other codes in Current Assets