As a small business owner, you are extremely busy handling multiple things - from managing your payments & collections to meeting customer demands – hence, left with very little time for anything else. Thus, it becomes very important that you have access to the right banking tools which can empower you to grow your business further. One such important tool is a dedicated Current Account for start-ups and small businesses.
A Current Account can help you optimise cash flow, manage day-to-day operations with ease, access funds quickly and safely, and provide other useful financial services which are essential to run your business efficiently. Given all the valuable benefits they offer, here are 5 most important reasons why small businesses should have a Current Account.
1. Managing your funds become easy
Having separate bank accounts for personal and business use is an effective way to manage your money better, as it allows you to easily differentiate between your personal and business expenses. This ensures that all transactions are tracked accurately, which in turn helps with budgeting, forecasting, preparing financial statements, tax filing and much more.
2. Helps to build a professional image
Having a Current Account can be beneficial in the long run to help build a professional image of your business. A Current Account can add an extra level of reliability and legitimacy - which are important factors when dealing with large companies. It is a requirement that cannot be overlooked by businesses seeking success in today's competitive market, as this may be a determining factor in how clients perceive your business.
3. Enhanced transactional efficiency with higher number of withdrawals
A Current Account for start-ups and small businesses helps in simplifying the management of daily transactions. It allows a higher number of transactions and withdrawals, thus helping small businesses to operate with greater efficiency.
Additionally, you get to access various payment modes and solutions, including apps, Credit and Debit Cards, Internet Banking, and Cheque Books – hence, enabling you to manage funds anytime, anywhere and ensuring that you do not miss out on any opportunity to make your business grow.
4. Overdraft facilities
One of the major benefits of Current Account for your small business is the Overdraft facility. This facility is very beneficial in meeting the requirements of your business and managing cash flow problems. This facility allows you to withdraw more money than what is available in the account, up to a certain pre-determined limit. It offers much-needed flexibility in dealing with business expenses like bills, salaries and accounts payable or during delayed payment from customers.
Additional Read: How can you handle your Current Account more effectively?
5. Additional value-added benefits
Many financial institutions also offer additional value-added benefits and offers beyond banking. These include but are not limited to -
Summing up why a Current Account is exactly what your business needs:
Having a Current Account for small business helps unlock banking solutions that empower you to boost your business efficiency. From managing your business funds better to tracking payments and collections seamlessly, keeping all financial records up to date, making strategic decisions with the help of well-compiled reports and much more. With these features readily available at your fingertips, a dedicated Current Account can be an invaluable tool for your small business as it embarks upon the journey of higher growth.
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.