Accounting for business cards

All companies are required to order business cards for business purposes. A true professional communication tool, they are subject to a specific accounting treatment . Account-Easy the detail here by indicating how to account for business cards .


Accounting for the purchase of business cards

The business card purchases represent jobs that are consumed during their first use. They disappear immediately afterwards. Consequently, these are charges to be recorded in a Class 6 account and more particularly to the debit of account 6236 “Catalogs and printed matter” , given the advertising nature of the cards. They constitute advertising expenditure .

In practice, here is how to account for a purchase of business cards :

We debit :

  • Account 6236 “Catalogs and printed matter”
  • Account 44561 “VAT deductible on other goods and services”
  • And account 401 “Suppliers” is credited .
  • Then, when the invoice is settled:
  • Account 401 “Suppliers” is debited ,
  • And account 512 “Bank” is credited .


Example : a company bought business cards, amount of the invoice, dated 30/06 / N: 120 euros inclusive of tax (100 euros excluding taxes and 20 euros VAT). It pays its supplier immediately by credit card immediately. It will be required to post the following entry in a purchase journal on 30/06:

  • Account debit 6236 “Catalogs and printed materials” for € 100,
  • Debit from account 44561 “VAT deductible on other goods and services” for € 20,
  • And credit of account 401 “Suppliers” for 120 €.
  • On the same date, in her bank journal, she must enter the following transaction:
  • Debit from account 401 “Suppliers” for 120 €,
  • Credit account 512 “Bank” for 120 €.

Accounting for regularization of undistributed business cards

When the business cards are not all distributed and their amount is significant , the company must carry out their inventory at the close of the accounting year in order to make adjustments in the accounts called prepaid expenses ( CCA) . They are recorded, for their amount excluding taxes, if the company is authorized to recover VAT, in this way:

  • Account 486 “Deferred charges” is debited ,
  • And account 6236 “Catalogs and prints” is credited .
  • Once the fiscal year and the new fiscal year are opened, the entry must be reversed (this means that it must be turned upside down):
  • Account 6236 “Catalogs and printed matter” is debited ,
  • And  account 486 “Prepaid expenses” is credited .

For example, one company bought business cards for 5,000 euros excluding taxes and received them on 29/06 / N (it correctly recorded the purchase invoice as of 29/06). It shall close its accounting year on 30 June of each year. On that date, it has not yet distributed any business cards. They must therefore all be recognized as prepaid expenses in a journal of miscellaneous transactions as at 30/06 / N ( inventory entries ):

  • Debit from account 486 “Deferred charges” for € 5,000
  • Credit for account 6236 “Catalogs and printed matter” for € 5,000.
  • The expenditure generated by the purchase of the business cards in account 6236 will thus be neutralized in terms of accounting result (+ 5,000 – 5,000 = 0).

Conclusion : Business card purchases are recorded in account 6236 “Catalogs and printed materials”. At the end of the financial year and only if the amount is significant, the undistributed calling cards must be regularized in the accounts.