The majority of the time, freelancing isn’t something that happens overnight.
You don’t decide one day that you want to start freelancing and then watch the clients come rolling in.
Often times, freelancing is more of a transition that happens over a period of weeks, months or even years. Due to the nature of this transition, many freelancers use their personal bank accounts when first starting out—which is fine.
However, as the work becomes more and more consistent, it’s important that you discontinue using a personal bank account for your freelance business.
Why? For starters, it will make doing your taxes much, much easier.
“2. A separate account helps avoid tax time woes
A combined personal/business account is messy, making it harder to organize your books come tax time. You may find yourself wading through all of your past year’s transactions, including trips to the grocery store, to find business expenses to write off. Having separate accounts streamlines your recordkeeping – saving you time and ensuring you won’t miss any legitimate deductions.”
See the full post at FreshBooks.