(Toiminimi) Sole Trader's Bank Account

Sole Trader Bank Account Options in Finland: Traditional Banks and Modern Alternatives

Starting as a sole trader (toiminimi) in Finland comes with many decisions, and one of the most important is choosing the right bank account for your business. While it may seem simple to use your personal bank account, it’s crucial to understand what options you have and what banks allow.

Can Sole Traders Use a Personal Bank Account?

Though this is a popular way to go, many banks state in their terms and conditions that business transactions are not permitted on personal accounts. Ignoring this could cause issues later with your bank, bookkeeping, or even the tax office.

Best practice: Open a dedicated account for your business finances to keep personal and business money clearly separate.

Traditional Business Bank Accounts

Major Finnish banks like Nordea, OP, and Danske Bank offer business accounts for sole traders. These accounts usually come with:

• Online banking access

• Business payment services

• Options to connect with accounting software
  
  

The downsides can be monthly fees and stricter requirements compared to personal accounts.

Modern Alternatives: Holvi and Others

If you prefer a more digital and flexible solution, providers like Holvi are designed specifically for entrepreneurs. Holvi combines a business account with invoicing and expense-tracking tools. Other fintech providers also offer accounts with lower fees and easier setup compared to traditional banks. We strongly recommend to study the T&Cs of each service provider to understand their service and the nature of it. Note that such service providers ofter aren't classified or recognised as "traditional banks" so the legislation they're applied may differ.

Key Takeaways

• Sole traders ofter use a personal account, but many banks forbid it in their T&Cs.

• Opening a separate account makes accounting and tax reporting much easier.

• Traditional banks provide robust solutions but may be more expensive.
  
  

Fintech options like Holvi offer modern, flexible services tailored for entrepreneurs.

In short: separating business and personal money is highly recommended. Whether you go with a traditional bank or a fintech alternative, the right account will help you run your business more smoothly.

We're familiar with Holvi accounting, so don't hesitate to reach out if you've gone with that solution.

Want to bounce thoughts on that and how can a sole trader's accounting be done in a compatible and convenient way? Talk to us.