At a recent meeting with a GP practice, the issue of the partners’ current accounts (aka capital accounts) came up. The balances had grown steadily over recent years and the three partners each had current account balances of close to £25,000. They wanted answers…
‘Why are our balances so high?’ as well as ‘what should we leave in our current accounts?’ and ‘why won’t you (aka me) let us take our money out of the practice?’
All good questions. The answer lies in a better understanding of the current accounts.
