Lili Review: Business Banking For Freelancers

Each checking account comes with a Visa business debit card. Some people may balk that there isn’t a business credit card. However, Lili is a checking account product so providing an accompanying debit card makes sense. From the mobile app, you can freeze or unfreeze the debit card.

Like other banks, Lili's customer get a routing number so that they can set up direct deposit with their clients. But where Lili shines is in the delivery speed of those deposits. It says that its customers receive direct deposits up to two days earlier than they would at a traditional bank.

Plus, Lili provides cash deposits through leading retailers (approximately 90,000 locations) and users can connect their existing payment apps (Venmo, CashApp, Paypal) and online platforms (i.e, Fiverr, Upwork) to Lili to receive payments directly into their bank account.

One area that is disappointing is mobile check deposits. The feature is available in the mobile app, but you'll need to have at least $200 coming into your account every month to access it.

This may not be a hurdle for some freelancers. But others will need to figure out a way to get that first $200 into your account per month without making a mobile deposit. One potential solution would be to start depositing any paper checks after your first digital payment arrives.

Where Lili really benefits freelancers is in its reporting and tools. It's why we name it a great tool for business budgeting.

Each time you use your Lili debit card, the transaction will appear inside the app. Then, by just swiping left or right, you can categorize each expense as "personal" or "business."

In addition to simplifying expense categorization, Lili offers reporting for expenses, taxes, and financial insights. This is more than what you'll find on standard checking accounts.

Many small business owners may pay for financial management software that provides these reports for them. So if Lili’s free reporting is able to provide the same features that you’re getting from your accounting software, you may be able to cancel your software account and reduce your expenses.

Beyond the reporting, Lili has a great tax saving tool which allows you to automatically set money aside for taxes on every income, and an Emergency Bucket, which helps users set money aside for emergencies with daily deposits of small amounts. For example, you can set a fixed daily amount, as little as $1 a day, to save for emergencies.

For freelancers who may not know how much to save for taxes (or forget altogether), this can be a lifesaver at tax time.

Related: Tax Deductions For Your Online Business Expenses

You can visit the Lili website to open an account. It only takes about 3 minutes. Once you complete the application on the website, you’ll download the mobile app to begin using Lili. Your Visa debit card should arrive within 10 business days, but you can start using your digital debit card immediately.

If you're a freelancer who already prefers to do your banking on your phone, Lili could be a good choice. It charges no fees and offers expense categorization and tax reporting tools that you'd typically need to pay separately for.

However, if you're looking for a business checking account that offers rewards, pays interest, or you need that physical bank for large cash deposits, Lili won't be for you. For those priorities, other business checking accounts like Radius Tailored Checking, Novo, or Azlo may be better choices.

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