In accordance with accounting standards, cash outflows on payment cards must be properly classified in the cash flow statement. Payments made with a debit card immediately represent an outflow from the current account and are recorded according to the nature of the transaction—such as payments to suppliers, representation expenses, acquisition of fixed assets, or salary expenses if related to employee benefits.
On the other hand, payments made with credit cards create a liability to the bank, which is recorded as a debt in the liabilities account. Only when the employer makes a payment to the bank for the credit card balance is the cash outflow from the current account recorded. If the credit card debt is settled in the short term without significant interest charges, it is treated in the same way as debit card payments, classifying the cash outflow according to the business purpose of the expenses.
How are changes in accounts recorded?
For debit cards, the expense is directly recorded as a liability to the supplier (account 435) and simultaneously settled by withdrawing funds from the current account (account 241). Payments made with credit cards are recorded as a liability to the bank (account 422) and are settled later by payment from the current account. Additionally, if interest is charged on the credit card debt, it is recorded as an interest expense (account 562) with the corresponding liability to the bank (account 460).
Properly recording these transactions ensures the accuracy of financial statements and helps avoid potential tax irregularities. Categorizing expenses according to their purpose enables transparency in financial reports and facilitates business analysis.
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