Why Freelance Writers Should Separate Their Personal And Business Finances
If you're a freelancer, you might currently use your personal accounts for both business and personal expenses. This might seem normal when you work for yourself, and it's not truly necessary to open up commercial bank accounts if you're self-employed as a freelancer. Doing so has its perks, though, so it's something to at least consider.
It Makes Preparing for Tax Time Easier
A lot of freelancers dread tax time. Sorting through your personal accounts to try to determine how much you've made and how much you've spent on your business throughout the course of a year can be a nightmare, especially if you have to weed between transactions for things like groceries and hair appointments. If you have separate business accounts, keeping track of things for tax time — and for your own records — is a whole lot easier. Not only will you not have to sort through all of your personal transactions, but many commercial bank accounts have online banking tools that are designed just for business owners and that can be very helpful for your freelancing business.
It'll Help You Make Sure You Have Money for Business Expenses
Even though freelancing doesn't usually have the same amount of expenses as some other businesses do, you probably still have some expenses that you have to worry about. You have to set aside money for taxes and make sure that you have money for things like business travel, a new computer, a new printer, advertising materials, and more. If all of your money is in your personal accounts, you might spend more than you intended, and you might be left without money for business purposes. But if you keep money specifically in your business accounts for all of these things, you'll have what you need when you need it.
It Makes Tracking Your Personal Expenses Easier
Keeping track of your personal finances, such as how much you're spending on utilities and groceries, is important so that you can make small changes here and there to save money and be more financially secure. If your business and personal accounts are all mixed up, though, tracking your personal expenses becomes a lot harder. By separating the two, you won't just be improving your business, but you'll also be improving your own personal finances, too.
Finding a good bank that offers commercial banking is smart for many freelancers, and it might be a positive change to make for your freelancing business.