A business bank account is a transaction account that is specifically designed for businesses rather than for personal use. You can use your business bank account to pay for day-to-day business expenses, pay invoices and staff wages and also to receive payments from clients and customers.
Here are a few key things to consider when picking a business bank account:
Some business bank accounts charge monthly fees, in exchange for more features and services than what's offered on a personal account. If you don't need larger transaction limits, staff-assisted cash deposits or specialised features, look for a business bank account with no monthly fee.
Some banks don't have any physical branches in Australia. If you need to make staff-assisted transactions in a bank branch, make sure the bank account you choose has branches in convenient locations for your workplace or home.
Does the account come with access to an online portal to help with your business reporting and tax obligations? Also, looking for an account that's already integrated with accounting software like Xero can help you manage your business admin.
Is there a limit to how many debit cards you can request, or is there a fee for each additional card? Look into this if you want to have multiple debit cards for multiple employees.
If you regularly receive cash payments you should look for a business bank account that doesn't charge you to deposit cash. It's worth comparing the cost per transaction, with an account that charges a flat monthly fee for unlimited staff-assisted transactions to see which option would save you money.
This is a feature that's not widely offered with personal bank accounts, but it can be offered with business accounts. If your business needs an overdraft facility, look for an account that offers this.
If you travel a lot for work and plan to use the debit card to withdraw cash or make purchases overseas, look for a business bank account with low or no international ATM and foreign transaction fees.
If you’re registered as a partnership, small business, company, sole trader or Trust in Australia then you need to open a business bank account, and cannot use a personal account. This is to ensure you meet your business tax obligations.
Not only is it a legal requirement, but small business bank accounts are also helpful to keep your business income separate from your personal finances.
Business bank accounts offer a range of benefits, but some of the best include:
The Airwallex Business account is a product designed for global payments that allows you to earn a return on your cash too via the Yield feature.
Read Finder's review of the Great Southern Bank Business+ Saver. Learn more about this savings account for seniors.
Read Finder's review of the Macquarie Business Savings Account. See if this product is right for you.
The Auswide Bank Business Access Account is a business transaction account that lets you earn interest. This account has no minimum balance requirement and a low monthly fee.
The Suncorp Premium Business Bank Account is a business bank account with no monthly fees, unlimited fee-free transactions and a linked Visa Debit Card.
This is a business bank account with no monthly fees or minimum balance requirements, and a complimentary Prospa Visa Business Debit Card.
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A business HISA is a good alternative for a business owner who is not interested in aggressively investing their excess business funds. These allow access to the money when needed, while it works at gaining interest when not.
I intend to start and then progressively grow a property (dwelling) renovation business. The first one or two over an 18 month period will be as a sole trader situ and then most likely a trust for future more frequent/higher value projects. The longer term plan is to progressively buy renovate and then turnover quickly to minimise holding costs.
What is the best banking product for my business. The purchase will be based on a 20% deposit (own funds) with balance borrowed from a bank.
Hello Malcolm,
thanks for the question.
Unfortunately we’re not able to provide personal advice regarding which product is better for you. I recommend comparing the various accounts in the market in relation to what you’re looking for, and then calling the providers of the accounts you’re interested in to find out more.
I hope this helps,
Marc.