Learn about the best banking features for freelancers
There’s a lot to think about when you begin freelancing. Coming up with your business plan, learning how to market your services, and actually doing the work are just the beginning.
You’ll also need to think about money, and not just all the money you’ll be earning. What about taxes? Where will you keep your money? How quickly can you access it? You need a banking that works for your freelance business.
But with all the banks out there, and the many different accounts, how can you know where to get started? Here are some features you should look for in banking for freelancers.
Access to your account on the go
One benefit of freelancing is the ability to work anywhere. Whether you’re working at a coffee shop, from your car, or anywhere else, you need to be able to access your money. Your freelancer banking should have a mobile app and have access to a network of fee-free ATMs so you can make cash withdrawals when you need it.
Automatic tax savings
Unless you’re an accountant, saving for taxes is probably not something you planned to do when you started freelancing. Fortunately, some accounts have an automatic feature to help you save for taxes automatically.
Once you set it up, you’ll never have to wonder if you can cover your quarterly estimated taxes. Just make sure you don’t spend the money designated for taxes, and it will be there when you need it!
Easily categorize business expenses
If you have a business, you’ll probably need to spend money at some point. At the end of the year, you may be able to deduct your business expenses to reduce your tax bill — but only if you’ve tracked them throughout the year.
Look for an account with a feature that lets you categorize your business expenses easily. Not only will filing your taxes become that much easier, but you’ll probably save some money on taxes, too!
Receipt capture
Digital receipt capture means you don’t need to keep track of a box full of business receipts. But the IRS still recommends that you save your tax records, including receipts, for seven years.
Instead of keeping track of little slips of paper for proof of your business spending, look for an app that lets you capture the receipt along with the purchase. This feature is especially helpful for freelancers working on the go because it keeps all your documents where you can easily find them.
No fees
Monthly fees, annual fees, transfer fees — some banks charge you for just about anything you do. But it’s your money, and you should be able to access it when you need it without worrying about fees.
Look for an account that won’t charge you just for keeping your money in the account. Even better, find one that allows fee-free transfers to and from your account too. This is especially wise if you have separate business and personal accounts.
Cash-back rewards
Credit card accounts aren’t the only accounts that offer users cash back for purchases. Some accounts include cards that offer the same type of rewards for spending your own money, without the expense of going into debt!
Why an indi account works for freelancers
If all these features seem impossible to find in one account, we have good news for you. indi offers all these and more. It’s an account designed specifically for freelancers, gig workers, and independent contractors.
indi comes with built-in tools that allow you to set a goal for tax savings. Each time you get paid, a portion of your payment will be earmarked for taxes. It’s easy to tell what you can spend and what you still need to save. Then, when it’s time to pay your quarterly taxes, you’ll already have the money set aside.
You can also categorize your spending with indi’s app and capture receipts as well. Then at the end of the year, indi can help you generate a Schedule C report to assist in your tax preparation.
indi never charges you account opening fees, monthly service fees, or account balance minimum fees, so you don’t need to worry about unexpected charges in your indi account. And with indi’s mobile banking app, you can access all these features on the go, no matter where you’re working. Our network of 60,000 fee-free ATMs gives you convenient access to your cash when you need it.
indi has all the banking features freelancers need, wrapped up neatly in an easy-to-use app. See how indi can help you meet your financial goals while freelancing.
This article is not intended to provide financial, tax or legal advice and the information provided may not address your individual circumstances.