Business account or private account for your business – what to look out for?

Both differ in the conditions. Rarely is a company account offered free of charge by the bank. The reason is: significantly more bookings go through a business account than through a private account.

For corporations GmbH – AG – UG – KgaA is mandatory under the Banking Act a business account. It is also not uncommon for a bank to exclude a private account in its general terms and conditions for business purposes and therefore it may not be used.

Which conditions should a business account contain?

• Online banking
• Direct debit
• Free current card and credit card
• Sending the bookings to the tax advisor
• sufficient branches at a branch bank
• Interest on credit balance, if possible

Using a private account is not advisable

Although small business owners, freelancers, and self-employed individuals are not required to maintain a business account, it is not advisable to use your personal account as a business account.

At the beginning everything sounds still quite favorable and also uncomplicated, because it is simple to use the private account as business account, only with the time it becomes an accounting chaos.

At some point, the tax return is sure to approach and at the latest then one regrets not having a separate business account. After one year in business at the latest, separating the private transactions from the business ones means a huge time investment.

What most self-employed people lack is time and this is exactly what they block themselves with the private account as a business account. For cost reasons, many small business owners do without a business account and thus plunge into the never-ending tangle of bookkeeping. But what does not have to be, because there are enough free business accounts for small entrepreneurs and self-employed people. Mistakes in tax returns and accounting are not only dangerous, but can also leave a mark financially. In the end, the business account is the much cheaper option.

Advantages & disadvantages of dual account management

For freelancers and self-employed it makes sense in any case to use a dual account management. It has advantages and disadvantages:

• more transparency
• clean separation
• simplified accounting
• Budget control
• simplified tax return
• No bank problems

• new account opening
• probably double fees

Does the bank allow the use of private account via business account?

Who uses its private account with its house bank as business account, will have certainly not only problems in the overview of its finances, it must count even on problems of its bank. Banks are not pleased if the customer misuses his private account for other purposes. There is a reason why banks divide their product portfolios into business accounts and private customers.

It usually takes a few months before the bank notices that business transactions are also being carried out on the private account. If it stands out, consequences usually follow.

It is not uncommon that the bank automatically changes the personal account to a business account. The consequence can be a hefty additional fee, at least for the time of the double account management. Fair-minded banks inform their customers in advance and ask them to make the change to a business account themselves. Better commercially before a clean separation to bring about, then one is 100% on the safe side.

Which account does a self-employed person need?

For tradesmen and self-employed persons, bookkeeping is mandatory in Germany, which means that the receipts of business activities must be kept for 10 years. It also happens that business expenses are incurred even before the actual business activity, z. B. for a consultant fee or furnishings, machines and other things.

For this reason, it is advisable to separate private and business accounts in good time. Business expenses also include: interest on loans, expenses, entertainment costs. For all these expenditures vouchers must exist.

An account that is managed exclusively as a corporate account online is cheaper if only outgoing and incoming payments are booked non-cash.

small entrepreneurs, self-employed, freelancers

Especially in the beginning every cent counts for start-ups. There are some direct banks where you can open a business account at the same conditions as a private account. Here then handles the business traffic the second account.

A straightforward method in business account models is offered by some banks, taking into account turnover ratios and company size.

Again, some banks offer business accounts for every type of company and make no distinction between a GmbH, KG, Ltd, GbR and UG.

Sub-account

If the entrepreneur wants to separate different business areas, a business account with a sub-account is a good choice.

Free business account?

No question, there are also free company accounts, but be careful, here you should always pay close attention to the conditions.

The banks' bag of tricks is large and so additional services or accounting costs can quickly arise, set-up services, change and cancellation of direct debits or standing orders, foreign transfers and cash withdrawals. All these services are often charged for a free business account.

Experience shows that the N 26 Business account is currently one of the best free business accounts for small businesses and freelancers. N 26 offers a modern app-controlled business account. This includes: Free money deposit, cash withdrawal, as well as a free Business Master Card.

Therefore, you should know exactly how many entries you make each month, roughly, and what expenses you incur as a result. Only with an overview of the bookings and costs can the accounts be compared meaningfully.

How to open a business account?

Each bank handles the opening procedure very differently. As a rule, a form is filled out online and the data is forwarded to the bank by signature via Postident. requires an identity card and various documents, which depend on the legal form of the company.

Freelancers usually do not need any other proof besides the normal legitimation. Traders need a trade license and companies an extract from the register for submission.

Private account for self-employed?

Having a separate bank account for your own business can't necessarily hurt, but it doesn't have to be, even without the predicate "business account" is possible. If you have your own requirements under control and decide on a suitable offer on this basis, you can easily save a lot of money over the course of the year.

However, you should not pay attention to the last penny when making your decision. Just as your car depends on the engine, you depend on your bank advisor. Contact with your personal bank advisor is worth its weight in gold and can be vital in a difficult situation. If the spark does not jump here, you should better change the branch.

Business account comparison

The basis for any entrepreneurial success is the business account. Therefore, here is a business account comparison to help you find the best account for you to open the right business account.

Recommendation for GmbH, KG, GbR, etc.

• suitable for all business forms
• free of charge without conditions
• Help with accounting
• generally cashless bookkeeping free of charge

Recommendation for freelancers & self-employed persons

N 26 – Business account:

• only for freelancers and self-employed people
• Voucherless and completely free bookings
• Opening online in just 8 minutes
• business and private use possible

Do you need a business account at all?

If you are thinking about self-employment, you should consider having a separate account for business transactions in addition to your regular checking account. Thus, the small businessman avoids mixing his private and business records.

In addition, hardly any self-employed person knows at the beginning how his business will develop. If successfully established, a business account is not only important, but also much clearer for accounting purposes. If there is a separation between private and business here, it quickly brings confusion already in the account statements. A business account is not mandatory, but then recommended at the latest when the entries on the current account become too much, or you need to pay salaries to employees.

A business account can be opened at any bank. Whether you really need it depends on the nature of your self-employment. As an artist or freelancer with different clients, you can also open a second checking account. For example, a free account with a direct bank.

ATTENTION: Whether the bank agrees to set up a business account for you depends on whether it is also willing to support your start-up project.

TIP: Compare business accounts of different banks?

From bank to bank, the fees for a business account can vary, so a business account comparison should always be sought in advance. If direct contact is not so important, the online bank is a good choice. In the area of basic costs and business accounts, the direct banks always rank among the test winners.

How the overall ratio affects the cost ultimately depends on the number of monthly entries. There are banks that give you a free quota for a certain number of payment transactions. For this reason, the question of which is the best business account for a particular business also remains unanswered.

The exception are therefore purely free business accounts. Although there are several banks that offer this free model, most of them have conditions attached to them. For example, the deposit of a certain investment sum in the middle to five-digit range. For sole proprietors and freelancers, this comparison also shows good deals, with no strings attached. Currently, the "Fidor" bank also offers for business forms such as KG, GmbH, GBR, UG etc. a good, almost free offer on, which ranks at present among the best.

When comparing business costs, pay attention not only to basic costs, but also to:

• Fees for paperless transactions
• Credit card costs
• Girocard costs
• Interest
• Fees at the ATM for a cash withdrawal
• 2019 test winner and other awards

If you do not have so many bookings in the month, the business account – Open, is a good choice, as it has a low basic fee. With very good sales, you should better pay attention to low item prices here.