Essential Considerations: Does Your Small Business Require a Current Account?

Posted on Monday, January 1st, 2024 | By IndusInd Bank

Starting and managing a small business involves numerous decisions, and one crucial aspect is determining whether your business needs a current account. While not every small business may find it necessary, there are key considerations that can help you evaluate whether opening a current account is the right move for your venture.

Understanding Current Accounts

A current account, also known as a checking account, is a financial tool that allows businesses to manage their day-to-day transactions. Unlike savings accounts, current accounts provide more flexibility for frequent withdrawals, deposits, and payments.

Key Considerations
1. Transaction volume: Assess your business’s daily financial activities. If you deal with a high volume of transactions, a current account can provide the necessary flexibility to manage these effectively.

2. Professional image: A current account adds a level of professionalism to your business. It separates personal and business finances, which can be crucial for credibility and financial transparency.

3. Payment processing: If your business involves regular payments, having a current account makes it easier to process and manage transactions. It also provides a platform for electronic payments and direct debits.

4. Access to credit facilities: Many financial institutions offer credit facilities linked to current accounts. This can be beneficial for managing cash flow fluctuations and seizing business opportunities.

5. Accounting and record-keeping: A dedicated business account simplifies accounting processes. It streamlines record-keeping, making it easier to track business expenses, income, and tax-related transactions.

6. Legal and regulatory compliance: Depending on your business structure and location, there may be legal requirements or tax implications that necessitate the use of a separate business account.

7. Banking services: Consider the additional services offered by banks with business accounts, such as online banking, mobile apps, and account management tools. These can enhance your business’s financial management capabilities.

Choosing the right bank for your small business current account

IndusInd Bank with the legacy of over 29 years, offers a variety of current accounts curated for the needs of your business ensuring it thrives every day. Your search for the perfect business partner ends with IndusInd Bank current accounts including Indus Freedom, Indus Tarakki, Indus Premier and Indus Select and others. Your choice of a current account for your small business will impact in every way, hence, it is advisable to consider the benefits and features of the same. Let’s look at the features of these IndusInd Bank current accounts for the best of banking experience.

Indus Freedom Current Account

Suitable for small or medium businesses offering benefits to Individual & Sole Proprietorship only including:

1. No minimum balance requirement
2. One Financial transaction to be done every month on Net banking or Mobile App or ATM
3. Free Cheque Book

Indus Tarakki Current Account

Suitable for retailers, traders and merchants to enjoy seamless digital collections through POS, QR code, Payment gateway, UPI. Benefits include:

1. No Monthly Balance Requirement
2. Digital Collections through POS/PG/QR/UPI with minimum 1 digital collection transaction in a month
3. Anywhere free cash deposits up to ₹5 lakh per month

Anywhere free cash withdrawals and many more

Indus Premier Current Account

Suitable for medium-size businesses with an Average Monthly Balance (AMB) requirement of ₹50,000 only. Benefits include:

1. Dynamic Cash Deposit Limits
2. Higher transaction limits
3. Auto Sweep Deposit and Grouping of Accounts facility

Indus Select Current Account

Suitable for medium-size business with an Average Quarterly Balance requirement of ₹1 lakh (at single/group level). Benefits include:

1. Grouping of Accounts- add Family & Business accounts at no additional balance requirement.
2. Dynamic Cash Deposit Limits
3. Waiver on Outward Cheque return charges
4. Auto Sweep Deposit

Summing it up
Deciding whether your small business requires a current account involves a careful assessment of its financial needs and operational requirements. Choose IndusInd Bank current account as your business partner to achieve significant business goals as it is curated for your business’s unique circumstances. They offer convenience and professionalism, and align with your business goals, financial strategy, and operational preferences. Regularly reassess your business’s financial needs to ensure that your chosen banking solution continues to support your growth and business.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.