To common users of banking services, money transfers are money transfers. As in, you don’t consider them complex: just a tool to send and receive funds. But then, you face a plethora of terms like bank transfers, wire transfers, electronic payments, online transfers, and so on. And you start to wonder – “is there a difference between all of these?” and “what should I use?”. Well, let’s figure it out together! In this article, Genome will primarily focus on bank transfers and wire transfers and how they differ and compare wire payments to other transfer options as well. Wire transfer:
Every year we’re experiencing an increase in remote job opportunities, no matter if it’s working for a company within one country or being an employee of an international corporation. Along with this change, one more crucial shift has happened – a rise in the number of freelancers. For most freelancing jobs all over the world, the pros of self-employment outweigh the cons.
The one sphere that has a constantly growing number of freelancers is IT. And here we’re not only talking about developers and testers. The IT industry contributed greatly to the development of such freelance jobs as marketers, content writers, business analysts, web designers, and many more. Truth to be told – being a successful IT specialist working on your own is a great option, but what about the financial and legal hassle? Just like all the other workers, freelancers need to pay taxes, issue invoices and have all the necessary documents proving they provide services to their clients.
Genome is an EMI that works with numerous companies all over the world through our business accounts. Today we decided to connect all the dots and will be talking about freelance online accounts and why they’re needed. Read on!
What is a freelancer bank account
It’s a specialized business account designed for freelance workers. The main difference between freelance eWallets and regular business ones is the number of users. That is, many financial institutions now offer access to one company’s online account for a few people. For instance, if you own a small business, you can register your accountant so that they can see and make the transactions. With Genome, such an option is also available and is called shared account management. This is especially convenient for a few IT specialists working on one project – each of them can have different roles based on what they’re responsible for in the company.
With an online freelancer bank account, only one person is in charge of the digital wallet. Additionally, you can order a freelancer debit card (either virtual card or physical card), send invoices, receive payments from clients, etc. The range of these features varies from provider to provider.
Advantages of a freelance online account
Still not convinced that a self-employed business account will be handy? Let’s move on to the benefits of freelance eWallets:
- Personal and business banking separation
- Easy tracking of business spendings and earnings
- Financial record of business freelance activity
- Freelancer debit card for any company-related expenses
On the one hand, a freelance online account does not differ much from a personal account. On the other hand, managing your business finances in a separate freelancer bank account has numerous pros. For example, you can apply for a loan based on your financial business records. Many banks require these as proof of one’s business activity. The same is with taxation – you never know when evidence of your financial activity as a freelancer will be needed.
A business account in your name makes you look more reliable and trustworthy in customers’ eyes – it means that you are attentive to details and responsible. Finally, a freelancer bank account brings clarity to all your transactions – just log into your digital wallet and see when, how much, and from whom you received payments this month or during the past year.
No matter whether you’re a digital nomad in Europe and change countries or cities every few months, or work from home all the time – proper tracking of spendings and earnings in eWallet will decrease the time needed on paying taxes, arranging paperwork, etc. Overall, a freelance online account is totally worth it. You only need a few minutes to apply online and just within a few days, you’re ready to accept payments from your clients.
Do I need a business bank account for freelance?
Such an account is not a must, but it’s still recommended to separate your business and personal spendings and payments even if you’re a freelancer. You can apply for a business account within Genome online, right now.
Can I open a business account as a freelancer?
Yes, if your provider has such an option. Fortunately, because of the Covid-19, more and more banks are introducing great offers on business accounts for freelancers as many people quit corporate jobs and became self-employed, especially if we’re talking about the IT-sphere.
How can I open a bank account for freelancing?
First of all, look for a provider that can satisfy all your needs. For instance, some digital banks don’t allow having both personal and business accounts with them (if it’s an important requirement for you). If you’re selling goods and services in different countries, you will probably need a financial provider that supports multi-currency accounts, etc. The next step is applying for the very account. The good news is that nowadays it can be easily done online – just submit all the information and send the necessary documents. You can also search for some more benefits such as no deposit required, no monthly service fees, and so on.
Which account is best for freelancers?
It all depends on what you’re expecting from your provider. If you’re only starting your freelancing activity, you will probably look at the cheapest pricing plans. IT specialists that already have a large client base and stable income, are seeking the possibility to issue invoices, for example. Do your research before opening a self-employed business account.