Having a current account helps you to keep your personal banking and business banking separate. While you can keep a savings account for your personal funds, a current account manages all your business banking operations, including keeping a track on your taxes. So let’s delve into why a current account is important.
Before we look into the importance of the current account, let’s know what is a current account?
What is a current account?
A current account is a type of bank account that allows the account holder to make large number of transactions compared to any other account. Due to its flexibility of allowing huge daily transactions without any restriction on the volume, a current account does not earn any interest.
With a current account you can do any banking related transactions like cash withdrawals, deposits or contra transactions. You can even avail online banking facility from your current account. While you can open current account from any bank across the nation, you can carry out transactions from any bank branch of any location with just a nominal fee.
So, having a current account allows a business to carry out the transaction seamlessly. Let’s now check 5 reasons why it is necessary to have a current account.
Current Account Allows Unlimited Amount Of Transactions
Current account allows to have any number of transactions within a day, the upper limit of the transactions are so high that one need not worry about the frequency of transactions that can be done. Along with the number of transactions there is also very high limit to the volume of transactions that can be done. The fluidity of current account allows any business to operate seamlessly and promptly.
Keeping your personal assets away from your business
Keeping your personal assets away from your business is of utmost importance. Current account helps to track all your business related transactions without mingling with any of your personal banking transactions.
Keeping all business transactions away from your personal transactions keeps your record clean, thereby helping you to organise your data, expenditures, and taxes in a more accurate manner.
Current account makes operations more easy
Your businesses keep running efficiently and seamlessly as your banking operations are uninterrupted. You can have a good rapport without your vendors with prompt and instant payments. Online banking further helps you to receive and send money instantly anywhere with just a click.
You can also enable SMS banking facility on your phone making it even more easier to get transaction details instantly.
Current account is a way to prove your business legitimacy
It seems more professional if you sign a cheque with the account in the name of your business. It makes your vendors feel more affirmed and legitimate towards the business. Obviously signing a personal cheque wont affect your business but having cheques in the name of the business is more professional.
Extra benefits of having A current account
Current accounts come loaded with numerous benefits. From unlimited transactions to overdraft facility of overdrawing from your account. You can also have facilities of cheques, demand drafts, and online banking through NEFT and RTGS.
Now that we have spoken enough about Current account. Go through your bank’s website and check on the procedures and steps for having a current account.
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