Obligation for micro-entrepreneurs to open a bank account

By law, most businesses are obliged to open a special bank account called a business account when they are set up. Only micro-enterprises, whose sales do not exceed 10,000 euros excluding VAT for two consecutive years, are exempt from this requirement. Micro-entrepreneurs' banking obligations are simplified, as are their accounting and tax obligations. However, it is preferable for an entrepreneur to open a current account dedicated to his or her business. Here's why.

What is a business bank account?

It's a current account almost equivalent to a personal account, but designed exclusively for professionals and dedicated to business-related transactions.

An auto-entrepreneur can opt for a simple current account, separate from his or her personal account, in which all income/expense transactions will appear, faithfully reflecting his or her accounts. A true business account, on the other hand, is required only for legal entities.

However, a change occurred in 2022, complicating matters: sole proprietorships must now indicate EI on all their official documents, including the name of their bank account. In this case, it's difficult to keep a classic current account where only the first and last names can appear.

In any case, even if it's not compulsory, a business account offers undeniable advantages for managing expenses and tracking receipts.

What are the advantages of a pro account for a micro-entrepreneur?

The first advantage of a business bank account is that it facilitates day-to-day management. Even if, in a sole proprietorship, private assets are merged with those of the business, it is strongly recommended toisolate business operations from financial movements linked to personal life, in order to have a clearer vision of the financial situation of the business.

So, for example, by comparing cash receipts with customer invoices, the entrepreneur can react more quickly in the event of non-payment. They can also anticipate future expenses, taking into account fixed charges levied previously.

A dedicated account limits the risk of errors arising from confusion between assets and liabilities. Not to mention the fact that, in the event of a tax audit, it is easier to justify business transactions when they are grouped together in a separate account.

Secondly, a pro bank account gives access to additional services and tools that online banks and accounts reserve for businesses, such as a payment terminal or a larger overdraft authorization. Professional account holders also benefit from advice tailored to the specific needs of businesses.

To obtain credit, it's a plus to have a business account. If a micro-entrepreneur wishes to change status, or if his or her sales increase, a business account will be the obvious choice.

Opening a business account comes at a price. There is a big difference in pricing between different banks and online accounts. Traditional bank or online account? This is the question to ask yourself when setting up a micro-business. The main reason for opening an online account is financial.

Why choose to open a pro account online?

In addition to their highly competitive rates, institutions offering online accounts do not require you to visit a branch or make an appointment with an advisor. Customer service is available, sometimes 7 days a week. This not only saves you money, it also saves you time.

Each online business account has its own specific features, but they are all characterized by their practicality, responsiveness and ease of use. Opening an online account takes just a few minutes, and all you need is proof of identity, proof of address and proof of registration as a micro-business. After that, the entire process is fully digitized and instantaneous.

The range of online accounts continues to expand. They are able to offer virtually the same services as traditional banks, or even more comprehensive services better suited to professionals: creation of sub-accounts to enable cost accounting, automatic provisioning and debiting of expenses, encoding of transfers, visibility of expenses in real time...