Sorting your finances as a freelancer is a hugely important pain in the a**e. I mean, no one enjoys filling in a tax return. But if you track and organise your business income, it will make that dreaded day you decide to fill in your return (usually 6 hours before the deadline) so much easier.
Setting up a business bank account is the best way to keep on top of this. It gives you a separate account to receive payments and helps keep your ‘work’ money away from your ‘play’ money. It also allows you to go crazy now and again…like treating yourself to a Boots Meal Deal* ‘on the business’ – now that’s living. (*Other meal deals are available).
Now, you could opt for a traditional business bank account with your current provider. But bear in mind that most trad banks charge even the smallest businesses a fee. You could end up paying a monthly subscription of around £7 (two Boots Meal Deals) or you could even pay a percentage of your transaction amounts to the bank (around 3%), just for the ‘privilege’ of having an account with them.
That’s not on. Those Boots meal deals belong to YOU, not them!
So, what can you do about it?
Well it’s simple, stop buying boots meal deals.
Ha…That ain’t gonna happen.
Ok then, look elsewhere.
How about one of those ‘super cool’ new challenger banks?
Here’s a few reasons why…
● Most challenger banks offer free business accounts to freelancers and small businesses. Yes, you heard right. They’ve taken the word fee…and added an r. It’s FREE.
● You can tie in cool features like accounting software that helps make paying your taxes easier – you might even submit your return a whole DAY before the deadline. You can also set up savings pots that makes saving money a breeze.
● Most challenger banks don’t have physical stores – happy days, no queues! But if you’re one of those cats who likes a good queue and the smell of real money, you can still access a physical location to pay cash into your account. In the UK alone, there’s about 11,500 Post Office branches that are matched to a Challenger bank – you won’t struggle to find one.
● The need to talk to other humans is mostly removed by the incredible in app features and support that challenger banks give the user. Yes, you’ve got to rely on robots and technology a bit here, but if it saves you 20 minutes on hold with the same irritating song on loop, sign me up.
On a serious note, using a challenger bank compliments Fairdo. We make sure all the work you do is managed in a fair way and challenger banks, well they work to make sure your money is managed in a fair way too. We both want the same thing essentially – to make the gig economy a better place.
As a freelancer, not much comes for free – not even a boots meal deal. So if there’s a company trying to make things CHEAPER and EASIER for you when it comes to starting out, you should probably get on their side.
To get started, have a look for Tide, Starling and Monzo. They all offer an attractive current account and an easy set up business account.