The smart business account for the self-employed

A business or company account for freelancers, self-employed individuals, and companies essentially corresponds to a personal account and includes the same basic functions: depositing money, making and receiving payments.

However, there are some differences, including the following:

• The business account usually includes more extensive features for professional financial management.
• Depending on the type of company, the business account is usually under the company's name.
• Depending on the provider and type of company account, multiple authorized signatories can usually be set up.

Qonto's company account is an affordable online business account specifically tailored to the needs of freelancers. In addition to the classic banking functions, it also includes tools for preliminary accounting, simplified invoicing, and real-time financial tracking.

It is possible for freelancers to handle their business transactions through a personal account.

However, as your business picks up, you gain more clients, and business transactions increase, it becomes quickly confusing if you use your personal account as a company account. As a result, it is no longer clear how your freelance activity is developing financially.

Additionally, accounting and tax preparation become more complex and time-consuming if you first have to go through all transactions and prove business expenses.

Some banks also prohibit the business use of personal accounts.

If all your business transactions flow through a separate company account, you avoid these difficulties – your business and personal transactions are neatly separated.

Since business account providers often offer interesting additional features, maintaining a company account is usually the preferred solution.

With Qonto, you can open your business account online at your convenience in just a few minutes – easily and without an appointment.

After your registration, Qonto reviews your documents. In most cases, Qonto activates your account within just one business day, although in special cases, it can take up to 5 business days. Even before activation, you have access to the Qonto app and can familiarize yourself with the integrated business functions.

Once your Qonto business account is activated, you can make payments with your online-created virtual Mastercard cards.

Your physical One and Plus cards are usually delivered within 5-7 business days, and your X Card is shipped via DHL courier and typically reaches you within 2-5 business days.

If you are switching from another provider to Qonto, you can use the free account switching service.

Banks and other business account providers offer a wide range of options. To navigate the jungle of different services and offerings, you should first compile the criteria that are important to you.

Based on this criteria catalog, you can then compare the different offers from banks and fintechs – and make a decision for a business account that is best tailored to your needs.

Account for self-employed and freelancers: Free account?

An important point is certainly the costs. A seemingly free business account is not necessarily the cheapest choice. It often comes with numerous additional costs and fees for various services. It is definitely worth taking a closer look at the fine print of the respective bank.

A monthly flat rate provides more clarity in cost calculation.

Payment cards

Another important criterion in the business account comparison is often the payment cards. Is a free debit card or credit card included in the business account? Can you withdraw cash for free with it? What are the payment and withdrawal limits? A comparison of the conditions is worthwhile.

Qonto offers a wide range of payment cards: From various physical Mastercard cards to the elegant X Card made of metal to virtual cards and Instant Cards. Learn more about our company cards here.

Best business account for freelancers: Digital tools for accounting and financial management

As a freelancer, you should inquire about the additional services included in a business account. Especially providers of digital accounts often offer interesting additional features that make the financial management of your freelance activity easier.

Use sub-accounts to set aside reserves – for example, for upcoming taxes –, give your accountant read access, and never lose receipts again thanks to digital receipt management: Scan them directly after payment via app and upload them to your business account. All this and much more is possible with Qonto.

Other criteria in the business account comparison can include:

1. German IBAN,
2. Payment methods like real-time transfers, direct debits, or Google Pay and Apple Pay,
3. Loans for self-employed,
4. Real-time financial tracking via app,
5. Digital business banking via app,
6. Quick and easy opening of the company account,
7. Free paperless or paper-based transactions,
8. Financial reporting,
9. Digital invoice management,
10. Responsive customer support and much more.

The most important features for freelancers are, of course, sending and receiving money. But digital invoice management is also useful for saving time in everyday life.

Additionally, the integration of accounting programs and exporting to a tax advisor can help make bookkeeping and annual tax returns easier and faster. This way, freelancers save money and time, which they can directly invest in their business.

Financial reporting and sub-accounts with their own IBAN help keep track of your finances.

The offer of the 3-month free trial period is valid for new Qonto customers who choose the Basic, Smart, and Premium plans and sign a contract between 01.07.2024 and 30.09.2024. The Qonto Essential, Business, and Enterprise plans are excluded from the promotion and can still be tested for free for 30 days.

All offer conditions can be found here.