Guest post by Eliza Morgan
If you are just starting out on the long, exciting, unpredictable journey of freelancing, chances are you’ve started out small. Most people who begin freelancing do so as a side project in addition to full-time employment before eventually freelancing full-time. As your freelancing business grows, it is important that your business sense grows along with it. One way to establish yourself more professionally is to open a business bank account. Here are a few benefits and things to consider before opening a second account.
In order to run an effective business, even if your freelancing activities don’t really feel like a business per se, it is important to keep your personal and professional finances separate. The only way to make a consistent profit through your freelancing business is to be able to easily access how much money is going in and going out. What’s more, keeping a separate business account helps to you to control your personal spending, since you can deposit discrete amounts into your personal account from your business account.
2. Having a business bank account will ease the confusion come tax payment time.
This is perhaps the single best benefit of opening a business bank account. Whether you have your own business accountant or you file your taxes yourself, having a business account will enable you to see all your expenses immediately and file your tax forms accordingly. If you have an accountant, having a business account will save you substantially since accountants will often charge you more to sift through your personal account for business statements.
3. When clients make checks out to a business, they feel that they are in the hands of a professional.