Guides / Set up right
Open a separate account for your freelance money
The single best admin habit for the self-employed.
Keeping business income and costs in their own account makes tracking, taxes and budgeting much easier, and it's simple to set up.
A simple setup
- Business checking: all client payments in, all business costs out
- Tax savings account: a percentage of every payment, for taxes
- Personal checking: your regular "paycheck" from the business account
Good to know
Sole proprietors can often use a regular checking account in their own name for this. Check your bank's fees and any rules about business use.
General educational information, not tax advice. Rules change every year. Pocket Change Pros isn't paid by any bank, software company or tax service.