3 Tools Every Good Freelancer Needs for Efficient Business Banking

When I was laid off from my first post-grad job almost a decade ago, I saw it as an opportunity to do what I actually wanted to do: Start a freelance business. Unfortunately, I had no idea what that actually entailed. So I fell into the trap of doing almost everything in the most difficult way possible. I just didn't know any better -- let alone where to look for the tools that I've now come to use regularly to operate my business efficiently.

To get your business on track faster, here are three tools that can help you save time and money as a freelancer.

1. A business checking account

There's a myth that a business checking account is only meant for small business owners who have expenses. At least, that's what I thought when I started my freelance writing business, which only required a computer and internet connection. And while tracking business expenses can be one use for these accounts, there is another reason to get one, even if your business is exclusively online: Stabilizing your income.

The financial ups and downs of the freelancer lifestyle can be tough to navigate, especially if you're new to this style of business. Getting a business checking account with your bank can provide you with the stability of getting a regular paycheck. All you have to do is set up automatic transfers from your business account to your personal checking account. In effect, you pay yourself a salary. That'll help you live within your means, save money, and stick to a realistic budget.

Bonus: Depending on the account you choose, you may also have access to tools that can help you analyze your business' cash flow, project your earnings, and track your business credit score.

2. An online accounting service

It seems like every finance-related site wants you to connect your accounts to its platform these days. But having a reliable accounting service that tracks not only your income and expenses, but also provides you with estimated tax payment amounts for each quarter, is a must-have. Even if it prompts yet another series of connection requests. After all, if you miscalculate on your tax payments, you could be left with a hefty bill come April.

For example, if you were to end up owing $5,000 in taxes and you couldn't pay that off before the tax deadline, you'd also have to pay interest on that amount. The rate could be up to 25%, or $1,250, depending on your situation.

You'll want to look at the cost of various online accounting options (this may require a monthly or annual subscription). Beyond that, you'll need to make sure that you're getting the value you need out of accounting software, and not paying for things you won't need. For example, some options may provide extra perks, like an app, access to tax professionals, or even a dedicated tax advisor. Make sure the one you choose offers the best combination of perks and affordability.

3. A client onboarding system

This may not seem like something you need if you tend to work with established clients that have their own onboarding processes. But having this set up before you need it will be a huge boon to your business. Not only will it give you the opportunity to collect vital information you need to get paid, but it will also allow you to:

• Accept credit card payments
• Comply with data privacy requirements
• Use a contract that protects your business
• Cross-sell other products or services
• Get access to vital information to work more efficiently with a particular client via questionnaires

If you can, set up automatic cash transfers from your onboarding system to a separate account for tax payments, based on your online bookkeeping service's estimates. That way, you can minimize the sting of tax payments since that cash never touches an account you draw from for everyday expenses. Of course, if you have more complicated taxes, you may still need to talk to a tax professional to best understand how to handle things. Regardless, an onboarding system is a vital part of any freelance business.

Running a small business is tough, especially if that's your only source of income. But if you can take advantage of the business tools that are designed for freelancers, you'll be able to stabilize and demystify your finances, and set yourself up for an even more successful future.