This is how founders find the right business account

Cologne. Company founders have a lot to organize right from the start. One of the most important steps is to open a business account. Because founders of young companies should separate private and business finances from the start. "The golden rule for founders is to divide up their own accounts. This way, self-employed people can see at a glance whether their business is running or not," says Annick Weikert, financial trainer who focuses on the self-employed.

Founders should have at least three accounts: a personal account, a business account and an account for tax reserves. “This overview saves time, money and nerves because you don’t have to sort things out later,” says Weikert.

Just as with a private account, self-employed people also have to decide between a branch bank and a purely digital provider for a business account. Digital business accounts from direct banks are usually cheaper. But the right choice depends on your needs. “If you want to take out a loan and get advice on site, you are better off with an account at a branch bank,” says Weikert. If you can do without both, you save on account management fees with a digital account.

The FMH financial consultancy examined 26 accounts from ten providers exclusively for the Handelsblatt. In addition to the monthly account management fees, the costs for paperless bookings, which arise, for example, from transfers or when paying with a card, were also included in the rating. The experts also evaluated additional services such as accounting integration and interest on credit as well as the number of free cards.

FMH compared the prices for 150 bookings per month as an example. Many of the providers examined offer both a basic and a premium version of their business accounts. Both versions are taken into account in the ranking; the account with the better conditions is higher in the ranking. The ability to set up sub-accounts and deposit cash into the business account was also rewarded with points. Cash deposits are not possible everywhere: some providers only enable them through retail partners, others do not offer this function at all. “Many digital business accounts allow you to conduct your affairs exclusively digitally,” says Carlos Lopes da Costa, data analyst at FMH. “This is ideal for self-employed people who prefer to handle everything about their business online and don’t have to handle much cash.”

Four providers received a “very good” grade for their account models. The best digital business account is once again the “standard” business account from the Berlin fintech Vivid Money. The provider does not charge any account management fees, paperless bookings are just as free as a Visa debit card and 25 digital cards. However, customers cannot deposit cash with Vivid Money.

The account impresses with an integrated invoice tool for accounting. “Digital invoicing and accounting tools reduce administrative work and can also make it easier to work with tax advisors,” says FMH expert Lopes da Costa. The Vivid business account is aimed exclusively at self-employed people and small businesses. The provider charges interest on balances at 0.5 percent, and in the first four months it is even four percent. In addition, there is up to two percent cashback on payments.

A plus point compared to the winner of the evaluation: At N26, cash deposits are possible via retailers. N26 also offers an overdraft with an interest rate of 13.4 percent and grants 0.1 percent cashback on card payments. “Many digital business accounts do not have the option of an overdraft facility,” says Lopes da Costa. If you value this, you should check this in advance.

The Deutsche Bank subsidiary Fyrst made it to third place in the ranking with its “Fyrst Base” account model. The account is free for sole traders; for other legal forms it costs six euros per month. This can still be attractive for many founders because they initially start out as self-employed and later switch to a different legal form.

With the Fyrst account model, 50 paperless bookings per month are free, each additional booking costs 19 cents. In the test case of 150 bookings per month, this adds up to 19 euros. There is a free Girocard and a free Mastercard debit card. Customers can deposit cash at Cash Group ATMs and Postbank branches. There is a fee of three euros for every 5,000 euros deposit.

Another tip: If you're starting your own business, it's best to first think about which accounting software you want to use - or ask your tax advisor which one she works with. The founding trainer Weikert advises this. “Not every accounting software is compatible with every digital bank,” she says. Once this has been clarified, freelancers and self-employed people can save themselves a lot of work and hassle when managing their finances.