YAP, an independent and innovative digital banking platform provided by RAKBANK, seeks to redefine the structure of digital banking by offering a horde of benefits to its customers.
As a business owner, you must be an expert in managing your finances. It helps you save time and keep your business on track. One of the most effective ways that various companies implement to manage their finances is by opening a small business account as soon as the business launches.
Even the small-scale businesses that do not legally need to create a bank account create one to keep their business records accurate. It helps them maintain their peace of mind and prevent headaches as their business grows.
Here we will help you learn why you need a small business account for your start-up, followed by the best business accounts you can choose from depending upon your business needs.
Here are the significant reasons why small and medium-sized businesses need to open separate business account.
A business account helps businesses differentiate business transactions from personal ones. A business must track its income to analyse the growth, which is quite tricky when there is a common account in use to meet business and personal expenses.
Businesses need to open a bank account to keep their small business account records organized. It helps them track all their transactions and create a separate statement for the same. Also, with a different business bank account, the businesses can keep the accounting books organized and well-maintained.
In addition, a dedicated business account makes it easier for a business to file taxes and get returns. It helps a company create an image of a separate legal identity. And the best part is opening a small business account can help the businesses avail additional benefits like unlimited transactions, multiple currencies, no monthly fees, etc.
New businesses need to open a business account to meet the legal requirements. If they do not have any business bank account, they will not be able to receive any money from their customers and third-party clients. In the same way, they will not be able to issue any cheques or demand drafts to make payments. Additionally, opening a small business account enables the start-ups to include an estimate of their total share value in their accounting books.
Small or medium-sized businesses need to create a credit profile for their company. This helps them apply for a credit card, loans, mortgages, etc., in their business name and not their own. Creating a business account also allows businesses to keep the borrowing fees and interest charges separate for tax-filing and bookkeeping purposes.
A bank account helps businesses create a professional image and establish better relationships with their clients, suppliers, and competitors. For example, you need to accept payment from your client. If you have a business account, you can simply ask them to write a cheque on your business name or else you need to accept the payment under your name, which doesn’t sound professional.
Using a small business account to keep track of personal transactions helps your accountant or bookkeeper find essential information while filing taxes. For example, your accountant spends more time finding the relevant transactions from your records than filing the taxes. When filing taxes, it must be easier to gather the required information. It can streamline the whole process and save your money spent on accounting and bookkeeping fees.
Now that you know the significant reasons why you must try opening a small business account for your start-up, let us go ahead and help you find the best bank account that you could open.
Banks in the UAE offer multiple small business account options for local and foreign individuals. Choosing a business account that meets all your business requirements can be a tedious task, but it is equally critical to choose the one that fits in.
So to help you pick one, we have listed here the top seven small business accounts available to open in the UAE. You can go through the features and benefits provided and pick the one based on your preferences.
ADCB Standard Savings Account is an excellent small business account with a convenient account opening process. Small businesses can open this bank account in AED and other major currencies based on their requirements. If all the documents are in place, it takes around three to five business days for the bank to activate the business account.
ADIB Business Time Deposit is a small business account that offers attractive rates on business finance for the account holders. Once all the documents are submitted correctly, the bank takes one working day to activate the business account.
Note: For joint accounts, the company needs to submit all valid company documents and the original passports of all the applicants
Business One is another small business account that ADIB offers. The bank account can be opened in multiple currencies and comes with a low minimum balance requirement. The best part about this small business account is that it applies no additional charges on the online local or international funds transfer. This bank account also takes one business day to get activated.
Note: In case of opening a joint account, the company needs to submit all valid professional documents and the original passports of all the applicants
Emirates Islamic Business Classic Account is one of the best small business accounts as it provides the account holders with free access to online portals. Once all the documents are submitted, the bank takes one to four business days to activate the account.
CBD My Business provides account holders with a free online banking enquiry service. The bank account also enables the account holders to upgrade this enquiry service to an inclusive and collaborative online banking service. Other than this, the bank account offers a wide range of free services and benefits for the account holders. Here are a few. The bank takes around two working days to activate the account after all the documents have been submitted correctly.
Sharjah Islamic Bank Business Current Account is a small business account with low minimum balance requirements and takes three to five working days to get activated for the account holders. Let us go through the features and benefits of the Sharjah Islamic Bank Business Current Account.
Ajman Bank Business Current Account is a leading small business account that gets activated in three business days. Unlike other business accounts, the Ajman Bank Business Current Account allows account holders to make unlimited free online transactions.
Open a small business account today to keep your business transactions and tax documents organized. Other than the ones already mentioned, there are various other good reasons to open a small business account. It may take time to open a bank account, but it plays a critical role as your business grows. A bank account will enable you to establish good habits of managing your finances, making your bookkeeping simpler than ever.