What's the Point of a Business Account for Freelancers?

Seriously consider using a piggy bank instead of opening a business account. It may be the better choice. Photo by Carol.

What's the Point of a Business Account for Freelancers?

Not much.

That was the exact question I asked my banker today. And there really wasn't a point for some one like me to get a business account. It surprised me because I'd read more than once that the first thing you do when you have your business registered is you go and get an account. However, after looking at the monthly fees associated with the accounts I really started to ask, "what are the benefits?"

I booked the appointment with my banker, Shannon, for the sole purpose of asking that question. As I sat down I said, "I'm thinking of opening a business account." I'd spoken to her about my business before so she asked if I had the necessary information and started to pull out some forms.

"...but I'd like to know what the advantages are."

At that point she stopped and set the forms aside and told me straight up that business accounts just cost more. The only real difference, at least for my situation, is that I would be able to write cheques in the name of the business and receive cheques in the name of the business. Tracking finances would be a little easier but you can use any kind of account for that.

To be honest, I sort of expected she would present a good case for opening a business account and I could make my decision based on that. But if she doesn't think it's the right choice either then the decision is that much easier.

Another good reason to talk to a person, and I gotta say, I really like the people at my branch.