Whether you’re in the process of setting up a new business or you’ve decided that it’s time for a financial refresh by switching banks, you've come to the right place. With over 60 different business bank accounts in our database, our comparison table makes searching for a great match for your business that much easier (and quicker).
But what actually makes a great bank account for your business and what are some of the fees and features you’ll want to consider to make your decision an informed one? Read on below for more information on business bank accounts, including some of the most frequently asked questions about them.
Why do I need a business bank account?
It’s not uncommon for small businesses owners to simply make use of their own personal bank accounts, but there may be a couple of advantages to opening a dedicated business bank account as well.
- Separate finances: It can be hard enough to find an individual transaction when scrolling through the debits and credits in your own personal bank account, let alone when there are business transactions flowing in and out too. That’s why many business owners choose to separate their finances by opening a dedicated business bank account.
- Easier for accounting and tax: Speaking of which, separating your personal and business finances could make things a lot easier for your accountant, especially when it comes to tax time. That way there’ll be no confusion as to what’s personal and what’s business.
- More professional: Instead of sending customers your personal bank account details with your own name, a business bank account will display your business name. Plus with the creation of the New Payments Platform and PayID, businesses can forgo a BSB and account number altogether and instead use an ABN, ACN, mobile number or email addresses as their PayID to receive payments.
Finding a business bank account match
A bank account’s just a place to store and withdraw cash right, so why would I need to compare options? Well depending on your business needs, there are plenty of associated costs and features that you may want to weigh up first before signing up for any old business bank account. Here’s a quick breakdown of the costs and features to keep in mind when comparing accounts.
From ATM charges to over the counter withdrawal costs, there are a host of potential fees associated with business bank accounts, chief among them monthly account fees. Monthly account fees generally range from $5 all the way up to $20, which can easily start to add up over time. The good news is that there are a small number of accounts that don’t charge monthly fees at all, so these may be worth considering during your search.
Make a lot of transactions each month? Unlike a personal account, the number and type of free transactions you’re entitled to each month with a business bank account may be a crucial feature for your business. While the cost involved with making different types of transactions varies from bank to bank (many offer free transactions), the typical transactions you’ll need to consider include: via an ATM, EFTPOS, BPAY, direct debit, phone banking, internet banking, mobile app, cheque, and over the counter deposits.
While you’ll likely be issued with either a mastercard or visa debit card linked to your business bank account depending on the bank you go with, you may also want to consider any other payment options which are available including digital wallets like Apple Pay, Google Pay, and Samsung Pay.
Speaking of digital options, one of the considerations you may want to make is the quality of the banking app or online banking platform your business bank account is linked to. While you’ll likely be able to use the app and online platform available for personal users, many banks also have dedicated apps and platforms for business customers. For example, the NAB allows businesses to check their balances, make fast payments via PayID and authorise batch payments (e.g. staff salary payments) all from the NAB Connect app.
Frequently travel abroad for business? If you’re likely to use your business debit card to pay then you may want to consider any overseas ATM withdrawal fees or foreign exchange commission attached to your card and account.