An expat’s guide to a business account

If you moved to another country and decided to work for yourself – started freelancing, you’re probably using your private account for transactions. A fast online search confirms the legal terms and conditions. As a freelancer, you are not required to set up a separate business account. However, given the bunch of advantages, it can offer to you, it is worth considering opening a separate business account for your work. Here’s why.

No troubles with bookkeeping

With the possibility to keep track of transactions, your life becomes a whole lot easier as you do not need to spend hours arranging all your inbound and outbound payments. With a separate business account, you’ll never have your personal and business expenses mixed. So having everything prepared and well-organized, you are not worried when tax season rolls around. It is advisable to open a business account immediately, once you’ve become a freelancer. Switching, later on, requires contacting clients and service providers to switch payments and subscriptions to your new account and can bring you a lot of trouble.

Monitor your cash flow

Opening a separate business account ensures an accurate view of your business inbound and outbound payments – and by extension your personal balance. This way you’ll precisely know what finances are yours (private) to spend and what funds are necessary to manage your business. Nobody wants to spend time raking Netflix or Spotify subscription payments just to find that software check from 3 months back. Tracking your business’s cash flow in a separate account also assists you to bypass overspending – particularly in the early stages when you’re just starting from scratch.

Hassle-free invoicing

Individuals with personal accounts may be tired of compulsively checking their phones to check if that invoice has finally been paid. On the contrary, with the business account, you can now find business accounts with built-in online invoicing instruments made to take the stress out of invoicing. The reason for this is very simple: we all adore getting paid, however, nobody likes asking for money – even if we’ve earned it.

 Your bank might ask you to open a separate business account

For this reason, you should check your bank’s account terms and conditions – it is often the case that some banks restrict using your personal account for business purposes. For example, traditional banks in Germany allow only a certain number of business transactions each month. If your monthly business turnover prevails over your personal account’s limit, your banking institution might try to switch you over to a business account, typically with a temporary free trial period.

What are the options for choosing a business account?

Generally, there are two basic options for choosing a business account:

• Free (comes with no monthly fee);
• Paid (comes with a monthly fee).

Free business account

Such type of business account may not feature monthly fees, however, it could still cost you to run. Instead of a fixed fee, you might be charged a slightly higher amount for card transactions or other services. A free business account can still be a more affordable option for you if it fits your needs.

 Paid business account

The other variant is a paid business account. When paying a monthly fee, you can expect lower transaction costs (for instance, for withdrawing cash). Some additional features might also be added aiming to assist you to manage your business.

To open a Payscrip business account, you need the following:

• a valid government-issued photo ID or passport;
• a proof of registered address.

Why choose Payscrip?

Opening a Payscrip business account may significantly save you time and energy by separating your personal and business finances. Our online banking solution cuts off the flaws and inconveniences of the banking sector while maintaining all of its essential features. If you want to use the advantages of the Payscrip business account, do not hesitate to contact us. We are here at your service to offer you a full range of services, including instant access to the account with virtual and physical cards, contactless technologies, and many other things you’d love to use.