Business account and light entrepreneur
Opening a business account is an essential part of starting business operations and taking care of the business’s financial administration. In this article, we will explain how to open a business account, go through its features, and take a look at whether light entrepreneurs need a business account.
What is a business account?
A business account is a bank account opened for a business through which the business’s payment transactions can be easily handled. A business account is an essential part of the business’s accounting, and is typically a prerequisite for outsourcing accounting. Business accounts are mainly interest-free current accounts.
A business account is also a prerequisite for issuing a bank card to a business. If a business wants to obtain a payment card, it must open a business account linked to the card.
In addition to a regular current account, businesses that often conduct international trade can also open a currency account. With the help of currency accounts, a business can keep other currencies in addition to the euro in their account.
A currency account enables you to save on additional currency exchange costs if the business trades outside the euro area on a regular basis. You can receive payments and pay bills in foreign currencies without having to change the currency with each payment.
Opening a business account is one of the first things an entrepreneur must do when starting a business. Making business purchases and receiving payments require opening a business account. Your accountant will also require you to open a business account in order to handle financial administration.
In most cases, Finnish businesses can open a business account directly online through their own bank. Opening an account requires that you are of legal age, are entitled to sign for your business and have all the business’s basic information.
However, accounting firms and accountants will want a separate business account for your business’s payment transactions. So if you want to outsource your business’s accounting and financial administration, opening a business account is necessary.
Opening a business account for a small-scale business name is also profitable, even if the accounting is not outsourced, and there is no obligation to open a separate account. This makes it easier to separate personal and business financial transactions.
Opening a business account practically always requires a business ID, which is why a light entrepreneur cannot open a business account. In addition, a light entrepreneur does not really need a business account because financial transactions flow through Eezy anyway.
Only the payment for your invoiced work through the light entrepreneurship service and possible expense reimbursements will be paid into your bank account. A light entrepreneur is not treated as an entrepreneur but as a regular wage earner by the tax authorities.
However, a light entrepreneur can open another personal account for themselves, for example, to separate the pay they earn as a light entrepreneur from other income.
Opening a business account is an essential part of establishing a business and the business’s financial administration. All of the business’s payment transactions go through a business account, which makes accounting easier.
However, light entrepreneurs cannot open a business account because opening a business account requires a business ID. However, light entrepreneurs do not need a separate business account, as the payments for invoiced work are transferred from Eezy to the light entrepreneur.