5 Reasons Why Freelancers Should Have a Current Account - iBlogs (2024)

Posted on Friday, December 29th, 2023 | By IndusInd Bank

Are you having difficulties managing your finances as a freelancer? In today’s digital world, it might be challenging for freelancers to manage financial operations with multiple clients without a reliable digital channel.

A current account offers a wide range of benefits for freelancers. You can get access to essential banking services, potential credit prospects, improved tracking of your expenses, and financial organisation. This convenience can save you time and effort in handling financial matters related to your freelancing work.

In order to handle your finances more efficiently as a freelancer, this blog offers some compelling reasons why you should consider having a current account.

Benefits of current account for freelancers

Having a dedicated current account can offer several advantages. It can contribute to the growth and success of your freelance business. Here are the five major reasons why you should have a current account:

Separate financial identity

When you mix personal and business transactions in a single account, it can lead to confusion and inefficiency. A current account provides a separate financial identity for your freelance business. It helps you maintain a clear difference between your personal and freelance finances. This separation also helps streamline your financial transactions. Consequently, it makes it easier to track income and expenses.

Furthermore, a current account demonstrates professionalism and credibility to clients, as they can make payments to a dedicated business account rather than a personal one.

Expense tracking and budgeting

For freelancers who need to monitor their cash inflows and outflows closely, current accounts often provide valuable tools for tracking, categorising, and managing expenses. You can easily track your business-related transactions, making it simpler to monitor your earnings and expenses. This aids in budgeting, tax preparation, and ensuring that you have enough funds to cover business-related costs.

Tax management

Since freelancers are responsible for managing their taxes, which can be complex, having a digital current bank account dedicated to your freelance earnings makes it easier to set aside money for taxes. You can transfer a portion of your earnings into a separate account. It ensures that you will not inadvertently spend funds needed for tax payments.

Multiple payment options

With a current account, you get a variety of payment options, including demand drafts, cheque books, mobile banking, online banking, etc. The availability of multiple payment options makes it easier for you to receive payments from clients. Additionally, you can make business payments conveniently.

Access to business services

IndusInd Bank offers business-specific services and perks for current account holders. These include merchant services to accept credit card payments, business loans, overdraft facilities, and accounting tools.

A current account with an overdraft facility is extremely beneficial for freelancers, as you might be getting irregular income flows. With an overdraft facility, you can withdraw more money than you have in your account, up to a pre-approved limit.

Having a digital current account can provide access to these resources, which can be beneficial for growing your freelance business.

What to look for in a current account?

Now that you have a clear idea of the reasons for having a current account as a freelancer, here are some key points that you need to keep in mind while opening a current account online:

1. Remote current account opening

2. Video KYC

3. Easy access to the account via the web or a mobile app

4. High-level account security

5. Digital invoicing

6. Low monthly fees

7. Low minimum balance requirements

8. Transaction overview feature

9. Responsive customer support

Advantages of opening an online current account with IndusInd Bank

IndusInd Bank provides the option of opening an instant digital current account, such as the Indus Freedom Current Account and the Indus Tarakki Current Account. Both these accounts can be opened from the comfort of your home or office, which cuts out the need for lengthy paperwork.

Additionally, you can choose the option of video KYC, for which you only require your PAN and Aadhaar details. This means you do not need to visit the bank physically, thus saving a lot of time and effort.

You can also avail the following benefits:

• Hassle-free account opening process
• Freedom to pick an account number of your choice with the My Account My Number (MAMN) facility

• Premium doorstep banking services, including cash/cheque pick-up and drop
• 24×7 customer support for any query related to accounts and services

Conclusion

Having a digital current account for your freelance business is a wise decision. From enhanced professionalism and credibility to simplified tax management and effective budgeting, a current account for freelancers is a must. By adopting a dedicated current account, you can ensure greater financial organisation, better decision-making, and a more streamlined approach to managing your freelance career.

Ultimately, this efficient management of your finances can help you run a more successful and sustainable freelancing business on your own terms.

Make IndusInd Bank your trusted partner and take your freelance endeavour to new heights. Experience the convenience of digital banking, seamless transactions, and the useful overdraft feature. Open an IndusInd Bank Current Account today!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circ*mstances. 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.