Why freelancers need a separate bank account

An exclusive account for separate projects helps you manage taxes, bank charges and more

In terms of time and workload, freelancing gives you the most freedom and flexibility to schedule your projects and choose what you’d like to work on.

But freelancing isn’t just a matter of personal choices. Being one involves a tedious process of registering for an official receipt that, in turn, would help you open a separate bank account for payments. Yes, even when you already have other savings accounts in your name. 

Why do you need a separate bank account?

First, because an exclusive business bank account helps you manage payments from clients, especially if they’re overseas and their payments are remitted to your account with hefty bank charges. The separate bank account is also useful in figuring out how much you need to pay for your quarterly tax payment and audit.

How to register for another bank account

You can either go directly to a bank and ask for an application, or apply online.

For BDO, you only need to fill out an online application form, bring two valid IDs and make an initial deposit when you visit a nearby branch. A teller will guide you through the process.

You can also inquire about opening another account under your existing BDO account to make it easier to monitor. Just make sure you’re funneling only your freelance payments to your designated business account.

Whether you’re just starting out and still figuring out how to make your freelance life more efficient, BDO can be part of your journey. Working as a freelancer may be stressful but we’re rooting for you. Take us on your journey to help you chart an easier path.

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