Comments on: The Pros and Cons of a Separate Bank Account for Freelance Income http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/ Freelance Writing Jobs for All Writers Mon, 13 Feb 2012 06:14:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mariette http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123997 Mariette Wed, 12 May 2010 16:47:25 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123997 Another advantage of a separate account for your freelance income is state B&O or excise taxes. In Washington state, freelancers are taxed on their gross receipts. If your freelance income goes into a common bank account with a spouse's wages, proceeds from a loan, and birthday gifts from Grandma, the Department of Revenue auditor can make you prove that any given deposit WASN'T freelance income. Unless you want to have to prove that that $80 deposit 2 years ago was a friend paying you back for her share of dinner, putting your freelance income in a separate account is a good idea. Another advantage of a separate account for your freelance income is state B&O or excise taxes. In Washington state, freelancers are taxed on their gross receipts. If your freelance income goes into a common bank account with a spouse’s wages, proceeds from a loan, and birthday gifts from Grandma, the Department of Revenue auditor can make you prove that any given deposit WASN’T freelance income. Unless you want to have to prove that that $80 deposit 2 years ago was a friend paying you back for her share of dinner, putting your freelance income in a separate account is a good idea.

]]> By: Natalia M. Sylvester http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123996 Natalia M. Sylvester Wed, 12 May 2010 16:11:42 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123996 Just finally got around to opening a biz account. I agree that as long as you keep your expenses and income in order it doesn't make too much of a difference to have one account or two. The one thing I do like about having the business account, though, is that I can make purchases with my debit/credit card. It's just easier to have all my business expenses in one place. .-= Natalia M. Sylvester´s last blog ..<a href="http://www.inkyclean.com/soapbox_blog/2010/05/loud-voices-vs-distinct-voices-one-is-heard-the-other-listened-to/" rel="nofollow">Loud voices vs Distinct voices. One is heard, the other listened to.</a> =-. Just finally got around to opening a biz account. I agree that as long as you keep your expenses and income in order it doesn’t make too much of a difference to have one account or two. The one thing I do like about having the business account, though, is that I can make purchases with my debit/credit card. It’s just easier to have all my business expenses in one place.
.-= Natalia M. Sylvester´s last blog ..Loud voices vs Distinct voices. One is heard, the other listened to. =-.

]]> By: allena http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123980 allena Tue, 11 May 2010 23:12:51 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123980 Since I have an LLC, and often pay my contractors overseas with all kinds of odd services, I definitely have a biz account. And yes, I'd be the one at the grocery store with two different piles. I do that at Staples too ;) .-= allena´s last blog ..<a href="http://freelancewrite.about.com/b/2010/05/07/friday-round-up.htm" rel="nofollow">Friday Round Up</a> =-. Since I have an LLC, and often pay my contractors overseas with all kinds of odd services, I definitely have a biz account.

And yes, I’d be the one at the grocery store with two different piles. I do that at Staples too ;)
.-= allena´s last blog ..Friday Round Up =-.

]]> By: Issa http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123979 Issa Tue, 11 May 2010 23:03:43 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123979 I agree with you that having two separate bank accounts can help on tax time. I keep two accounts as well and I label them "emergency" and "savings." The emergency fund is the last money I'll ever touch when circumstances call for it. Savings is what I keep for future use, which doesn't have to be emergency. This is also where I get my tax money. Nice sharing! I agree with you that having two separate bank accounts can help on tax time. I keep two accounts as well and I label them “emergency” and “savings.” The emergency fund is the last money I’ll ever touch when circumstances call for it. Savings is what I keep for future use, which doesn’t have to be emergency. This is also where I get my tax money. Nice sharing!

]]> By: Lucy Smith http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123978 Lucy Smith Tue, 11 May 2010 21:57:24 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123978 Definitely have two accounts. I have a business savings account as well, which is where all my tax money goes so I earn interest on it before handing it over to the tax man :-) I also have those hooked up to my accounting software so I can reconcile accounts as they come in. Banking is probably different here, but I find the extra fees pretty negligible. It would be a rare month that my business account would cost me more than NZ$7 (USD$5). I just make sure I leave a little bit in that account to cover any fees, but as I put some in when I opened the account I'm losing nothing. .-= Lucy Smith´s last blog ..<a href="http://www.butterflycopywriting.com/stupid-line-duty?utm_source=RSS+Feed&utm_medium=feed&utm_campaign=Butterfly+Copywriting+Blog" rel="nofollow">Stupid things I’ve done in the line of duty</a> =-. Definitely have two accounts. I have a business savings account as well, which is where all my tax money goes so I earn interest on it before handing it over to the tax man :-) I also have those hooked up to my accounting software so I can reconcile accounts as they come in.

Banking is probably different here, but I find the extra fees pretty negligible. It would be a rare month that my business account would cost me more than NZ$7 (USD$5). I just make sure I leave a little bit in that account to cover any fees, but as I put some in when I opened the account I’m losing nothing.
.-= Lucy Smith´s last blog ..Stupid things I’ve done in the line of duty =-.

]]> By: Phil http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123967 Phil Tue, 11 May 2010 12:34:58 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123967 Absolutely, positively have two accounts. Doing anything else is unprofessional and potentially dangerous (if IRS gets involved). Absolutely, positively have two accounts. Doing anything else is unprofessional and potentially dangerous (if IRS gets involved).

]]> By: Freelance Writing Jobs for May 11, 2010 : Freelance Writing Jobs for Web and Print| Part of the Freelance Writing Jobs Blog Network http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123965 Freelance Writing Jobs for May 11, 2010 : Freelance Writing Jobs for Web and Print| Part of the Freelance Writing Jobs Blog Network Tue, 11 May 2010 12:09:24 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123965 [...] The Pros and Cons of a Separate Bank Account for Freelance Writers [...] [...] The Pros and Cons of a Separate Bank Account for Freelance Writers [...]

]]> By: Matt http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123964 Matt Tue, 11 May 2010 10:45:42 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123964 Personally, I prefer two accounts. I find that it makes it easier to balance my business finances as well as my personal plebian wages. It's too easy to misconstrue what you're using your freelance income if your finances are comingled. Plus, If you're as terrible about managing your money as I am, you want to keep things as simple as possible. Personally, I prefer two accounts. I find that it makes it easier to balance my business finances as well as my personal plebian wages. It’s too easy to misconstrue what you’re using your freelance income if your finances are comingled. Plus, If you’re as terrible about managing your money as I am, you want to keep things as simple as possible.

]]> By: Tweets that mention The Pros and Cons of a Separate Bank Account for Freelance Income : Freelance Writing Jobs | A Freelance Writing Community and Freelance Writing Jobs Resource -- Topsy.com http://www.freelancewritinggigs.com/2010/05/the-pros-and-cons-of-a-separate-bank-account-for-freelance-income/comment-page-1/#comment-123962 Tweets that mention The Pros and Cons of a Separate Bank Account for Freelance Income : Freelance Writing Jobs | A Freelance Writing Community and Freelance Writing Jobs Resource -- Topsy.com Tue, 11 May 2010 09:11:45 +0000 http://www.freelancewritinggigs.com/?p=8421#comment-123962 [...] This post was mentioned on Twitter by FreelanceWritingJobs and Todd Rutherford, Kristi . Kristi said: RT @freelancewj The Pros and Cons of a Separate Bank Account for Freelance Income http://bit.ly/caXtMr [...] [...] This post was mentioned on Twitter by FreelanceWritingJobs and Todd Rutherford, Kristi . Kristi said: RT @freelancewj The Pros and Cons of a Separate Bank Account for Freelance Income http://bit.ly/caXtMr [...]

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