Choosing the right business accounts for freelancers and small businesses may be a hard decisión to make, but it’s not impossible. Here are some tips to make things easier.
When starting out as a freelancer or beginning any self-employed venture, the first topic on the agenda is how to properly manage your money. There are many types of bank accounts available to freelancers and beginner entrepreneurs, but in order to decide which is best for you, there are differences you need to know.
Freelancers vs. Entrepreneurs
Although they are both independent thinkers and work for themselves, freelancers are different in almost everything to entrepreneurs with small businesses.
Entrepreneurs work on personal projects in an attempt to create an organization that will, in turn, produce money for them continuously, while freelancers primarily operate as a single person acquiring different projects from others as a means of maintaining a steady income.
Best accounts for small businesses
When financial institutions were constructing checking accounts for small businesses, they somehow seem to have missed the freelancer seeking to make a living.
Various small business accounts are offered, and allow small ventures in different stages of their business’ development, to choose accounts that are suitable for their financial needs.
The assumption many of these accounts hold is that there is more than one individual operating the business and that there will always be a consistent balance in the account, with money coming in regularly as opposed to periodically.
This is why these accounts are not entirely appropriate for a single freelancer with a variable income.
Best accounts for freelancers
In general, the best checking account for a freelancer is one that does not require monthly service deductions. An ideal account for a freelancer is one that enables him to retain as much hard-earned money as possible, with no fees and no minimum balance requirements.
Thre are different online accounts offered by entities like Bank Novo, Chase Total Business Checking, or Spark Business from Capital One that can be an option, or you can find traditional banks that offer solutions like the U.S. Bank Silver Business Package, for example.
In an attempt to completely rid yourself of the traditional checking account, you can opt for the business solutions that are provided by PayPal. By electing to receive money from freelance work via PayPal, you can use the PayPal balance to make purchases. Anything you do with your traditional bank can also be done using your PayPal account.