Would a business account be of more benefit?

[goodgodfather]

Morning all.

I’m currently working remotely/ online as a freelancer. I do also have a few businesses as well as an online business which are slow and have not yet taken off.

None of my businesses are registered yet and all currently trade under one/ similar names. I’d like to find out if it would be better to open a business account now (just for the online/ freelancing work to start off with) and establish my businesses with that account or to stick to my day-to-day savings account?

I plan on opening up the Gold Business account with FNB. It’s basically the same as the First Business Account but includes E-Bucks for a small monthly account fee.

Would this be a better move to do now (to receive payments for freelancing work) as well as have the account ready for when my businesses and online business take off?

Lastly, would I have a bit more relief with tax after transacting with a business account for my businesses, after some time (and ofcourse registering my businesses) or am I better off sticking to my day-to-day savings account.

TIA, apologies for the long post. I’m still learning and building up my financial literacy.

 

[lovewithoutforgiveness]

@goodgodfather I am not sure about the business account. But you should not use a savings account for transacting. Unless things have changed recently, saving accounts have higher transactional fees. Use a current account for day to day.

 

[peter_g]

@goodgodfather Why are you using a savings account to transact now? That will destroy any interest you're earning on it.

Just get an easy account with FNB. It's incredibly cheap and simple cheque account and you can earn eBucks from it.

Business accounts only really make sense if you have multiple users who need access to the same account or it's not in the name of a legal person.

 

[durkon]

@goodgodfather Starting a business account is a great idea because as your freelance career progresses, big agencies will require your registration certificate and tax clearance (after you see an accountant in the future) to onboard you.

The business account will allow you to pay yourself a salary, and you can start thinking in terms of personal growth and business growth.

You will also incur less from accountants who would need to separate personal and business transactions.

You'll also be able to receive USD and currencies from certain international clients who pay that way - by adding a dollar account linked to your business account.

 

[rebekahbell]

@goodgodfather the major benefit is easier accounting records. I actually don't know of any regulations that make it required but when tax season comes you'll be grateful.

Any time i will have frequent transactions I use a dedicated account otherwise just good recording keeping will suffice I have 100% used a dedicated savings account or otherwise