As a self-employed person, you want to stay in charge of your finances. A business account can help you do that. But is such an account actually mandatory? What does it cost? And which type of account suits you best? In this article, we will take you through all the ins and outs so you can easily make the right choice for your business.
What is a business account?
A business account is a separate bank account for your business. In this account, you receive income from customers and pay business expenses. Think of accounting software or fuel costs. This way you keep your private and business finances clearly separated.
You can usually link a business account to your accounting programme, keeping your records up-to-date automatically. This saves a lot of time and reduces the risk of errors. Moreover, it looks a lot more professional when customers pay to an account in your company name.
Is a business account mandatory for self-employed people?
The tax authorities do not oblige you to open a business account. In principle, as long as you keep your records in good order, you can also just use your private account. But whether that is convenient, you may ask yourself.
But banks think otherwise. In fact, many banks do not allow you to use a private account for business transactions. This is often stipulated in their terms and conditions. So to avoid hassle, many self-employed people choose to open a separate business account.
Advantages of a business account
A business account offers you many advantages as a self-employed person. It gives you more overview and prevents your private and business finances from getting mixed up. It helps you keep a grip on your money and simplifies your administration.
Key benefits at a glance:
- You separate your work and private life, which gives peace of mind and overview.
- At a glance, you can see what you earn and spend in business.
- Accounting becomes simpler and clearer.
- An accountant can work more efficiently with your figures.
- It comes across as professional to customers.
What should you look out for when choosing an account?
Know that not every business account is the same. In fact, some accounts are inexpensive, while others offer additional features. Therefore, it is smart to think about what you need beforehand.
For example, note:
- Your account's monthly fees and transaction costs.
- Whether you can link the account to accounting software.
- The ability to apply for additional debit cards or a credit card.
- Whether you can deposit cash.
- Whether you can link an ATM to the account.
- International payment options, useful if you work in or with foreign countries.
What does a business account cost?
The cost of a business account varies from one bank to another. In fact, with the majority of banks, you pay between €5 and €15 per month. On top of that, there may be costs per transaction, an extra card or when depositing cash.
Online banks are usually slightly cheaper than 'traditional' banks. Free accounts also exist, by the way. But those kinds of accounts are often more limited in use or available only in English. So good to know.
The best business accounts for self-employed people
Below is a handy overview of popular business accounts for self-employed people:
| Bank | Cost p/m | Notable / particularities |
| Knab Business | €7,00 | Widely used among self-employed people, simple and complete |
| bunq Free Business | Free | Super-fast, mobile-oriented, flexibly adjustable |
| ING Corporate | €9,90 | Reliable big bank, great app and customer service |
| Rabobank Corporate | €9,95 | Lots of entrepreneurial experience, wide range of services |
| ABN AMRO Business | €9,90 | Major bank with comprehensive support for entrepreneurs |
| SNS Business account | €9,95 | Quiet choice, clear costs and no fuss |
| Wise Business | Free | Ideal for international business, competitive exchange rates |
| Revolut Business | €10,00 | English platform, modern, good for international use |
Business account cheap
If you're looking for an affordable business account, Knab Business a frequently chosen option among freelancers and entrepreneurs. For €7 a month, this account offers you unlimited transactions. You also have the option to apply for multiple debit cards and an easy link to accounting software.
Knab is known for its clear and accessible services. For this reason, it is a popular choice for self-employed people who want a clear and affordable bank account.
Business account free of charge
Yes, free business accounts are also available. Examples are bunq Free Business (for sole traders only) and Wise Business. These accounts come with no monthly fees, but certain additional features or transactions may be subject to charges.
These types of accounts are ideal for start-ups or self-employed people who make few payments. Bunq offers a Dutch IBAN, while Wise does not. Due to low exchange rates, the latter option is especially interesting for international payments.
Business credit card application
Some banks allow you to apply for a business credit card with your business account. This can be useful for larger expenses. Think of spending on software, flights or equipment. The cost and conditions of a business credit card vary from bank to bank. For instance, sometimes your company has to be active for several months before you are eligible for such a business credit card. Either way, it is smart to check the conditions carefully beforehand.
Conclusion
As a self-employed person, you are not obliged to open a business account. Yet it can give you many advantages as an entrepreneur. It keeps your administration orderly and separates private and business matters. It also looks professional to your customers. Choose an account that suits your way of working and your budget. That way, you can keep your financial affairs running smoothly.
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