When starting a business, setting up a current account is something that cannot be overlooked. A current account is crucial as it helps in keeping business banking operations separate from personal banking. This type of account enables a large number of business transactions on a regular basis. Entrepreneurs, businessmen, and startups open current accounts because their volume of transactions is very high.
A current account can be opened in any commercial bank. Also, a current account helps in keeping track of all the expenses and makes the taxation process easier. Let’s look at some of the reasons why every business needs a current account.
Benefits of a Current Account
Separate your personal assets from business
Having a savings account for business transactions means you will end up mixing both personal and other transactions. This could be problematic from a tax and other financial points of view. You must keep your personal assets separate from business assets.
This can be done by having a current account. You will be able to plan and manage the budget more efficiently. Also, this will be helpful in calculating tax and deduction. You will have a ledger of all the transactions done specifically for business.
Make your business look legitimate
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If you write cheques or make online payments to vendors and others from a personal account, it has an impact on your business image. Having a current account means making your business look more legitimate. It is a reflection of your professional attitude and also provides more credibility to the company.
Get more benefits
While a current account has all the benefits that are typically present in a savings account, it comes with more features. You can enjoy free NEFT, IMPS, and RTGS transactions, higher limits for demand drafts & pay orders and more along with a higher withdrawal and deposit facility
No cap on the number of transactions
When you have a current account, there’s no limit on the number of transactions that can be performed. You can withdraw money any number of times, whenever you need. Also, the upper limit for transactions in a current account is high, which enables you to have maximum fluidity from an operations perspective.
Ease your operations
Delay in making payments when you make business transactions can have a negative impact. A current account enables you to carry everyday transactions easily and there’s no delay in operations. As the speed of transactions is high, you will always have a good relationship with customers and vendors.
Parting Thoughts
Opening a current account can be of great help as it streamlines transactions. If you are looking for the right bank to open a current account, visit IndusInd Bank. You can choose between Indus Premier and Indus Max Current Account, which are feature-rich, loaded with benefits and can help you grow your business.