Are you going to start your own business? Are you willing to start the freelance work? The problem comes in selection of bank account type. Many people are confused about selection of either personal bank account or business bank account. In this article, we are going to explain to you that who needs a business account for finance management.
Working for yourself or for company.
If you are working as a sole trader of the business, then you don’t need a business account. Swissblock personal account will work fine. If you own a LTD or LLC company, it’s better sign up for business account in order to fulfill the emerging needs of business and cash settlements.
Also some of the sole traders dealing with multiple sectors need business bank account. So we will suggest that if you want to sign up for it than just go for it. Because business bank accounts are easy to create, free and a great way to deal with finances. Also for the tax settlements, it makes it easy to calculate the tax numbers.
Easy setup of business bank accounts
First, you need to look for the business bank account providers that give you free setup and good plans. Initial setup as per swissblock business bank account should be free. If your business grow, you can upgrade it to premium features with minimal fees but it should be free for the start.
Also keep this thing in mind that if the business bank account is not working for you than you can simply close it and move on. There is no reason to stick to it without getting any benefit.
Types of finances
There are two types of financial transactions basically: Money inflow and money outflow.
Always encourage your customers to pay you in your business bank account rather than sending money in personal bank account. Also comply some invoice matching software with your account like Quickbooks intuit. This will give you clear idea about the money inflow by customers.
Swissblock also gives you the complete detailed money management and invoices reconciliation through simple clicks without any headache of buying some paid softwares.
It is preferred to use Business bank account while sending money from bank account. Business bank account comes with mastercard or visa from where you can easily spend money.
You can be able to classify your business expenses in one place and this gives you clear idea about money outflow and taxation. Its easy to get distracted and confused if you use same account for all personal and business transactions. That is why by setting up a business account you can learn and get idea about your finances much better.
Taxation on business bank account
If you proceed all your transactions through business bank account, then you its easy to file tax at the end of the year because you will know the actual money in and out from your account and the earned profit. It is also advisable to keep a certain amount of profit in account in order to cope with the taxes.
Sign up today on swissblock and get detailed idea on business bank account and much more.