Let's know why a business bank account is important and how it helps
Nowadays everyone does some kind of business, some run a small shop, some sell clothes online, some do freelancing But one thing that people often do not pay attention to is a business bank account. Most people do business transactions from their personal savings account. This seems easy in the beginning But this can create problems in the long run
Difference between personal and business account
See, a personal account is for your everyday needs Receiving salary, doing household expenses, personal shopping etc. This is fine for everyone but when you start entering business money from this account then things get mixed up
. Income and expenses are not clear
. There is confusion in filing tax
And the most important thing is that the
. And most importantly, the credibility of the business i.e., reliability decreases.
Benefits of a business account
1 Professional Image
When you give a request or transfer to a client and the name of the person interested in it is ABC Enterprises or your personal name, the impression automatically becomes strong The client feels that you are serious about your work.
2 Easy Accounting
When all the transactions are done only through the business account, the accounts will be clear and you will not have to think whether the expense was personal or related to the business.
3 Loans and Credit Facilities
Most banks provide special facilities to business account holders like overdraft, business loan, credit card, etc. If your business account continues to run and the transactions remains healthy, then the bank itself will offer loans.
4 Tax Compliance Easy
The biggest tension in business is that of tax. When you have a proper business account, every income and expenditure is documented. This makes it easier to file audit or tax returns.
5 help to move forward
Just think, if you are trying to convince an investor and he sees that the entire financial history of your business is clean and professional, then he will trust you more
What is required to open a business account
Now the question arises whether it is difficult to open this account.
Not at all, everything seems to be basic documents
Business Registration Certificate GST MSME Shop Act
In the country where you live, meet the bank that you are comfortable with and find out what you think
- Now the question is which account to choose?
- Current account is the biggest one, it allows unlimited transactions
- Premium Private Limited Account: Extra facilities are available in this like higher cash deposit limited also check book free DDS etc.
- Digital Business Account Fintech Companies And some banks now offer fully digital current accounts which are especially useful for freelancers and startups
Common mistakes people make
1 Running a business from a personal account
2 Choose the account only after looking at the balance and do not pay attention to other features Choose the account only by looking at the minimum balance and do not pay attention to other facilities.
3 proper KYC and not keeping the documents ready
4 transaction charge and hidden Do not check fees
Conclusion
A business account is not just a bank requirement but it is the foundation of your business identity and structure The day you start your business, you should decide that you should have a separate account for transactions
Be it a small business or a big one, a freelancer or a start-up founder, a clean, transparent and professional business account is a big support system to make your work stable and successful in the long term
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