If you are a small business owner, you must be aware of the benefits of a current account. However, the benefit of a zero balance existing account is not simply confined to managing your business's finances more conveniently.
Besides, as soon as your business expands, you'll face many dangers that stem from not possessing a current account. Having a single business checking account can not only look unprofessional but also create unnecessary confusion while discerning personal and business budgets.
Here's a quick look at how you can improve your small business with a zero-balance current account facility.
What is Zero Balance Current Account for Business?
A zero balance current account is for businesses, entrepreneurs, and shop owners who conduct multiple transactions on a daily basis.
It is just like any other current account for everyday payments - but a zero balance account does not mandate maintaining a minimum balance As the name suggests, this account does not charge fees - even if the balance is zero. It is ideal for small business owners who find it tough to retain high balances.
5 benefits of a zero balance current account for small business owners
Here are some advantages of a zero balance current account from the perspective of the small business owner:
1. Cost-effective
A majority of the banks charge a high amount as the minimum balance, which can be tricky for many local shop owners and proprietors to maintain.
However, as stated before, a zero balance current account does not require small business owners to maintain an average monthly balance.
The biggest advantage of this account is that you don't have to deposit large sums of money to maintain or open it. Moreover, you won't be charged with fees if you maintain a nil balance.
2. Easy transactions
You can access your zero balance current account anytime and withdraw or even overdraw your money quickly. Unlike other accounts that often impose additional charges on depositing or withdrawing any amount, this type of current account has no restriction on multiple transactions during the day.
This feature is especially useful for shopkeepers that accept digital transactions and credit or debit card payments.
3. Extra benefits
A zero-balance current account offers free perks besides unlimited deposits and withdrawals that meet the requirements of small business owners.
These include NEFT/RTGS, demand drafts, and pay orders. The net banking services are completely free. Plus, a complimentary checkbook and passbook are issued free of cost in the form of a welcome kit when the account is opened.
4. Separate accounts
Many small business owners know that they should sign up for a separate business account. It simplifies bookkeeping and helps you avoid unnecessary tax fees and background checks, especially if you receive many payments in cash.
A zero balance current account allows you to keep your business finances and personal expenses separate. It is also good for tax benefits as it will enable you to declare deductions on business expenses easily.
5. Good for your reputation
A zero balance current account is a professional way of accepting your customers' payments and gives a good impression of your business standards.
If you maintain the existing account well, you can even get strong recommendations from the bank, ultimately reflecting your creditworthiness. In contrast, small businesses that do not have a current account are likely to face scrutiny from the bank and IRS.
In Closing
Opening a zero balance current account can render several benefits for any business and is an appealing option worth checking out.
Visit Onthewaymoney.com to sign up for an existing cash flow that also rewards you on daily transactions.