Freelancing carries a lot of responsibility. You’re in charge of every aspect of your business, from what work you do and how you do it to how you manage your accounting and finances. It can feel like you wear a dozen hats, especially as your business grows.
According to Forbes, if freelancing continues to grow at its current rate, the majority of the U.S. workforce is predicted to be freelancing by 2027, which means an ever-growing segment of the population is learning that lesson every day.
A big part of this learning curve is figuring out our small business finances. And at times, it can feel like stepping into a Chief Financial Officer role without any pertinent training. That’s why it’s important to do what you can to simplify things for yourself. One of the best ways you can do this is by opening an all-in-one business bank account. This simple process creates many opportunities to streamline your business and make your life easier.
What is All-in-One Business Banking?
All-in-one business banking can be a game-changer for small business owners and self-employed individuals. It’s generally a business bank account that provides essential financial services like checking, savings, invoicing, and expense-tracking into a single, user-friendly platform. Rather than juggling multiple accounts and tools, you can manage all your business finances in one place.
In recent years, there’s been a rise in all-in-one banking solutions tailored specifically to the needs of small businesses and freelancers. It makes sense: With the majority of the U.S. workforce predicted to be doing free-lance work in some way by 2027, traditional banking likely won’t cut it anymore.
As the population of independent workers continues to grow, these platforms are gaining popularity for several key reasons:
- Convenience: With all your financial tools in one place, you can save time and streamline your money management. No more logging into multiple accounts or manually transferring data between systems.
- Affordability: Many all-in-one banking solutions offer low or no monthly fees, making them more accessible to businesses with tight budgets. You can enjoy essential features without the high costs often associated with traditional business banking accounts.
- Designed for small businesses: Traditional banks often cater to high-revenue businesses with complex needs. All-in-one banking platforms, on the other hand, are built specifically for self-employed individuals and small business owners. They offer features and support tailored to your unique challenges and goals.
- Simplicity: As a small business owner, you already have enough on your plate. All-in-one banking simplifies your financial management with intuitive interfaces, automated tools, and easy-to-understand dashboards. You don’t have to be an accounting expert to take control of your finances.
Is an all-in-one business bank account worth all the hassle of adding something else to your to-do list, especially if your current system has been working just fine right now? The answer is a resounding “Yes!” Here are 4 reasons to consider making the switch.
4 Reasons Small Business Owners Should Consider an All-in-One Business Bank Account
1. All-in-one business banking can streamline your workflow.
As a small business owner, your time is precious. That’s why everything you can do to systemize and streamline your workflow matters. Every platform you toggle between, password you try to remember, and monthly subscription payment you make comes with a cost — both mental and financial.
Finding an all-in-one business banking platform that provides the essential banking tools you need along with all-in-one bookkeeping, tax features, and invoicing tools can reduce that load. When you consolidate these necessary functions into a single platform like Found, you can likely:
- Cancel your bookkeeping software or put off hiring a part-time bookkeeper or CPA
- Manage invoicing directly through your banking platform
- Ditch your mileage tracking app
- Automate financial reports without a pesky spreadsheet
- Streamline your tax preparation if you’re a sole proprietor with an auto-generated Schedule C form (be sure you consult a tax professional for your specific business type, though.)
- Save money on multiple subscription fees because you’ve combined everything into a single platform
As an added bonus, seeing your finances in one spot will empower you to make informed and confident decisions regarding your business.
2. All-in-one business banking can automate your bookkeeping and expense tracking.
Surprises may be welcome when it comes to gifts or parties, but when it comes to taxes, most of us want to know what to expect well before the refund may arrive. The IRS uses a “pay as you go” tax system where everyone is required to pay most taxes throughout the year as they earn income — not just in the following April, when they file their yearly tax returns. Many traditional W-2 workers may not have to worry about making these tax payments on their own, since their employers withhold taxes from their paychecks, and send those tax payments to the IRS on the employees’ behalf.
But when you’re self-employed or own your own business, you’re typically required to meet your income tax obligations throughout the year (filing your quarterly tax payments). When your banking tool has built-in expense tracking and bookkeeping features, it can help you categorize your purchases and find write-offs easily. That means you won’t miss a deduction — or a chance to save.
Some tools, like Found, also make it easy to estimate and automatically save for future tax payments. All Found users can set aside a fixed percentage of deposits for tax payments. If you’re a sole proprietor, you can also opt to use Found’s smart percentage setting, which estimates the taxes you need to set aside as a sole proprietor, or you can set the allocation yourself.
3. All-in-one business banking can save you time on administrative tasks.
For freelancers, the phrase “time is money” rings true. Any time you’re not doing client work, you’re likely not earning money. For this reason, it’s important to minimize the amount of time spent on administrative tasks — such as logging and categorizing expenses or creating invoices — so you can spend more time doing the work that pays the bills.
Having a business bank account helps save time in a few ways:
- Everything is in one place, so you don’t need to spend time hunting for transactions across multiple accounts.
- Built-in accounting and bookkeeping tools can pull those transactions and automatically assign them to the proper categories, saving time on bookkeeping tasks.
- Calculate tax requirements and write-offs, which can help prevent you from doing those tasks manually.
Anything you can do to streamline your operations is a plus. While it might seem like adding another bank account to the mix will complicate things, the opposite is actually true. It can make things simpler and help keep you from hours of busy work.
4. All-in-one business banking can save you money.
Running a business can be expensive. Accounting software is powerful and can save a lot of time. Payroll solutions for managing your independent contractors can help with tax filing and payment requirements. Invoicing platforms will help you keep track of who has paid and who hasn’t. However, those platforms often come with hefty monthly fees.
All-in-one business bank accounts often come with built-in tools that help eliminate the need to pay for those pricey accounting, invoicing, or payroll solutions. For example, you could pay for a monthly subscription fee to a bookkeeping software like Quickbooks to keep track of your expenses. On the other hand, an all-in-one business bank account (like Found) can automatically pull and categorize those transactions for you. Or do you pay 1099 contractors for your business? Found’s 1099 contractor management tools help you to easily onboard, manage, and pay contractors — all for no cost.
Have You Found Your Business Banking Solution?
Whether you’re new to freelancing, or you’ve been at it for years, it’s never too late to streamline your business. One of the best ways to do it is to open a business bank account. While it might seem like opening a new bank account will complicate things, the reality is that it’s an affordable time-saving option for business owners.
If you’re looking for a business banking solution, check out Found. Our all-in-one banking solution offers a business account, powerful invoicing tools, and time-saving bookkeeping features. Try it out today — it’s smart, simple, and free to sign up.
Disclaimer: Found is a financial technology company, not a bank. Banking services are provided by Piermont Bank, Member FDIC. The Found Mastercard Business debit card is issued by Piermont Bank pursuant to a license from Mastercard Inc. The funds in your account are FDIC-insured up to $250,000 per depositor for each account ownership category. Found’s core features are free. Found also offers a paid product, Found Plus. The information on this website is not intended to provide, and should not be relied on, for tax advice.