Running a business requires a lot of time, effort, and money. And thus, efficiently managing your financial resources is important. The success of your business largely depends on how well you plan, monitor, and manage your finances. Here, having the right tools can make all the difference.
To illustrate this point, let’s imagine you run a small boutique that specialises in handmade accessories. You use a savings account for both personal and business expenses since there are few transactions to handle. But as your business grows, the number of transactions and expenses multiply, and soon you realise it’s time to separate your personal finances from business transactions to avoid confusion and streamline your operations. This is where a Current Account can help your business.
From helping you manage your finances to accessing overdraft facilities, a Current Account can help you conduct your business operations smoothly. Here is how.
High upper limit transactions
A Current Account makes it easier to manage large-scale money transfers as they come with high daily transaction limits. This feature is particularly helpful if your business relies on high-value transactions, like bulk wholesale purchases or real estate deals.
Access to the overdraft facility
Overdraft facilities offer businesses a crucial lifeline during a temporary cash flow problem, especially for small- and medium-sized businesses that operate on tight budgets. It lets you cover expenses such as bills, accounts payables, salaries, etc., during emergencies or when you are waiting for funds to arrive from clients.
An overdraft facility enables businesses to borrow funds from their bank account, which can be paid back with interest over a specific period. This facility is useful for businesses that have a seasonal cash flow, experience sudden dips in sales, or other temporary cash flow challenges.
Keep your personal and business expenses separate
With a dedicated company Current Account for business transactions, you can easily keep personal and professional expenses separate, avoiding any confusion or financial errors. This not only makes it easier to track your expenses but also simplifies the bookkeeping process, saving time and money.
Moreover, a Current Account can help you get an accurate record of all business transactions, allowing you to better track your expenses, monitor cash flow, and plan for future growth.
Easy bulk payments and foreign transactions
With the option of conducting bulk payments and foreign transactions, a Current Account can streamline your operations and increase efficiency. Making bulk payments like paying salaries at once can save time and resources, while foreign transactions can help businesses expand globally without worrying about high currency exchange rates.
Make sure to confirm with your banking partner if these features are available in your Current Account to take advantage of them and facilitate smooth business transactions.
Additional valuable benefits
Apart from the above-listed benefits, a Current Account gives you access to additional benefits, including:
- Free demand drafts
- Free NEFT/RTGS/IMPS transactions
- Higher pay order limits
- Free transactions alerts
- Free account statement every month
- Personalised chequebook
Depending on the bank and current account variant you select.
To sum up
The online procedure for opening a Current Account is user-friendly and requires minimum documentation, making it easier to take advantage of its benefits. Simply visit your bank’s website, click on the ‘apply for a Current Account’ option, fill out the form, and provide the required documents.
Once the application is submitted, a bank representative will verify the information and complete your Current Account opening process. Post approval, you can use the account to streamline your operations and focus on growing your business.