Open a Business Current Account

Managing cash is never easy. A well-structured plan should be in place to provide businesses with liquidity to meet short-term commitments without affecting its long-term goals. Depending on the business sector, business model and various other factors, a safety cash buffer of between 1 and 6 months should normally suffice.

For efficient cash management, besides segregating business finance from personal finance to provide a clearer picture of the business’ financial position, using an appropriate account for the cash at hand will be critical.

Current account, a type of deposit account held with a financial institution, is commonly used. It helps to handle payments with ease, and is central for managing money on a day-to-day basis. Current account aids in cash flow management with clients, suppliers and other related parties.

The aim of a current account is to provide services such as, cash or cheque deposits and withdrawals, payments of invoices with cash, cheque, transfer and standing order, and movements of funds with other accounts.

A current account is relevant regardless of the stage of the business’ life cycle. Whether it is starting up, growing or expanding, cash is better managed with a current account.