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But managing finances as a freelancer can be a bit challenging.
Primarily, because both business andpersonal financesare often lumped together in the same bank account.
And according to experts, this is a big no-no.
Self-employed professionals absolutely need a dedicated business bank account.
This isnt just a suggestion its a critical step for financial success and legal protection.
Read on to see Salahis key reasons whyhaving a business bank account is vital.
This separation is crucial for accurate bookkeeping and financial management, he explained.
In my experience, self-employed individuals who mixpersonal and business fundsoften need help with financial clarity.
Professional Credibility
A business bank account lends an air of professionalism to your operations.
Clients perceived her as more established and trustworthy.
Legal Protection
In case of legal issues, Salahi said aseparate business accountcan help protect personal assets.
This concept, known as the corporate veil, can be critical if your business faces legal challenges.
Ive seen cases where self-employed individuals faced personal financial risk because they didnt maintain this separation, he explained.
Enhanced Financial Tools
Business bank accounts often come with features tailored to business needs.
Salahi said these include higher transaction limits, cash flow analysis tools or integrations with accounting software.
It provides a clear trail of business transactions without the clutter of personal expenses, Salahi said.
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