Private account and business account

Service Business

A bank account is now a standard used by virtually every adult (and not only) citizen. Therefore, the fact that an entrepreneur running his own business should have an account does not surprise anyone. However, in order to choose the best method of paying taxes and social security contributions, it is worth getting acquainted with the issue of a bank account in business activity. Perhaps it is worth setting up a business account and taking advantage of its advantages?

Bank account in the light of the regulations

Among the transactions made by the entrepreneur, there may be those that should be settled using a bank account. These are transactions with other entrepreneurs, the one-off value of which exceeds the equivalent of EUR 15,000 (converted according to the exchange rate of the National Bank of Poland on the last day of the month preceding the month in which the transaction was made). However, if a transaction of similar value takes place between the trader and the consumer, the need to use a bank account will not apply.

Additionally, it is worth remembering that if more than one bank account is used for business purposes, each of them should be reported to the tax office competent for the taxpayer.

Private account or business account?

The regulations do not indicate whether an entrepreneur running his own business must have a separate company account, or whether he can make the necessary settlements using a personal account. Therefore, taxpayers often decide to stay with a private account.

The convenience of having one account is the convenience, as well as the much lower costs that banks charge for maintaining a private account compared to a company account.

However, if the trader does not choose an additional account, he may also incur some additional costs. The best example is, for example, interest on funds accumulated on the account. As it is not possible to indicate exactly to what extent this interest relates to private resources and to what extent to corporate resources, the taxpayer will be required to recognize it in full as taxable income.

It may also be problematic to sell the entrepreneur's private belongings, the remuneration for which has been transferred to the bank account. For if there is an inspection, it will be the responsibility of the taxpayer to prove that the measures actually concerned private sales, not corporate sales, which should be subject to income tax.

So if an entrepreneur chooses between settling a private account as part of the activity and setting up a separate, corporate account, it is worth carefully considering the advantages and disadvantages of each of these solutions.