Starting a business is quite simple in today’s world. The traditional norms for business activity have become quite fluid lately, with many companies operating remotely and spanning geographical boundaries without owning an office space.However, the first thing to do on starting your own company is to open a current account for small business. Consider the reasons why
1. A current account marks you as a serious business entity.Whether you start your business with a staff of 20 or begin working as a sole proprietor that outsources work to vendors, your business still needs its own current account. A registered organisation with a current account in the company’s name outlines your intent to function as a professional set up. The first benefit of a current account is that it establishes your company’s credentials and makes it easier to accept payments.
2. It makes it easier to track revenues.All the revenues and working capital that your business needs is linked to your current account. The current account for small business has a weekly or monthly statement that gives an accurate summary of all expenses and income. Taking an in-depth look at your current account statement makes it easier to get an idea about areas of expenditure, scope for improvement, etc. It also helps you track the growth trajectory of your company, so you can strategise for the next quarter.
3. It improves your credit score.Taking care to file your company’s IT returns, repaying business loans, and ensuring that cheques never bounce, all contribute to giving you a good credit rating. When your current account for small business is properly maintained with zero defaults and healthy account balances at all times, your credit history improves and your bank is more amenable to lending you working capital and other loans.
4. It makes banking easy.Gone are the days when small businesses transacted in cash to save on taxes. Today, paying GST every month and adhering to all taxation norms is key to finding continued success in business. The biggest benefit of a current account is that it lays out a paper trail of all transactions – this aids in maintaining financial records and all related paperwork. Since every transaction is recorded electronically, you can easily answer any queries from the IT department, if necessary. Online banking helps make daily operations even simpler, and you don’t need to maintain paper records of your banking transactions either.
5.There are various types of current accounts to choose from.
Leading banks in India today offer a wide variety of current accounts for small businesses. A valuable benefit of a current account is to have a zero balance account, which is helpful for start-ups. Besides, banks customise the current account suite and offer value added services to make daily banking more efficient. You can easily open a current account for business online, without paperwork or bank visits.