Managing self-employed finances with a single checking account is a recipe for surprise tax bills. Here is the elegant 3-account system.
Account 1: Business Operations Checking
All client payments land here. All business software, supplies, and contractor fees are paid from this account.
Account 2: High-Yield Tax Reserve (Savings)
Every time client money arrives, immediately transfer 25%–30% into this dedicated high-yield savings account. This money belongs to the IRS.
Account 3: Personal Living Checking
On the 1st and 15th of each month, transfer a fixed "paycheck" amount from Business Operations to your personal account.