Finding the best small business bank accounts in Australia is important to help the financial side of things run smoothly.
In this guide, you'll learn why it's important to open a business bank account, and you'll get an overview of the fees and features of the best options on offer.
What is a business bank account?
A business bank account is one you'll use only for your business transactions.
Why is it important to open a separate business bank account?
It's important to open a separate business bank account to keep your personal transactions separate from your business expenses and earnings.
While you legally don't have to set up a business account as a sole trader, it simplifies accounting and record-keeping, helping you stay compliant with GST and income tax obligations. If you are operating a partnership, company or trust you must open a separate business bank account.
What are the benefits of a business bank account?
The benefits of a business bank account include:
Better bookkeeping with personal and business transactions kept separate
You'll have better bookkeeping when personal and business transactions are kept separate because you know every transaction is business-related. Then, when you use small business accounting software, bank feeds make reconciliation fast and easy.
By connecting MYOB to your financial institution you can automate transaction matching, so your financial records stay up-to-date with your cash flow position.
Business-specific banking features
Business-specific banking features can include easy integration with accounting software, higher transaction limits and access to business loans and overdrafts. Some banks may also offer specialist business accounts for your industry.
Improve your business trustworthiness
Keeping your personal and business accounts separate can improve your business's trustworthiness. A dedicated business account can create a more professional image than an account in your own name which can project an impression of amateurism to customers and clients.
What are the different types of business bank accounts?
The different types of business bank accounts include:
Business transaction account
This account is used for your day-to-day business transactions.
Business savings account
A business savings account earns higher interest – a good place to put money aside.
Business specialised account
A range of specialised transaction, deposit and foreign exchange accounts to meet specific industry requirements.
Top 5 bank accounts for small businesses in Australia
Five of the most common bank accounts used by small businesses are:
Westpac Business One Account
Westpac Business One is an everyday business account for day-to-day transactions.
Features:
Features include unlimited electronic transactions and eligibility for a business debit Mastercard. If you meet the criteria, there's an optional overdraft and the account works with the EFTPOS Air Mobile app.
Fees:
There's no monthly fee and unlimited free electronic transactions. Staff-assisted transactions are $3.00 each. However, for an extra $10 per month, you'll get 25 free staff-assisted transactions included. If your account gets overdrawn without prior arrangement, a 15.01% p.a. unarranged lending rate is charged.
Commonwealth Bank – Business Transaction Account
The Commonwealth Bank business transaction account is for everyday banking — ideal for small businesses and sole traders.
Features:
Features of this business account include a free Visa debit card and unlimited electronic transactions.
Fees:
If you bank electronically, there are no monthly or transaction fees. However, you can opt for a $10.00 monthly charge that allows you to make five bank-assisted or over-the-counter transactions. Otherwise, assisted transactions are $5.00 each or $10.00 per QuickCash deposit.
ANZ Business Essentials Account
ANZ Business Essentials is a simple account that keeps your business transactions separate.
Features:
Features include free unlimited electronic transactions, eligibility for a Visa debit card in your business name and easy integration with accounting software. Balances over $5000.00 earn 0.01% p.a. interest.
Fees:
The monthly fee is $0.00 with unlimited electronic and ATM transactions. Assisted transactions are $2.50 each.
NAB Business Everyday Account
NAB Business Everyday Account is designed for day-to-day business banking.
Features:
Features include easy integration with accounting software, free unlimited electronic transactions, and a free NAB Business Visa debit card. This account offers the best deal if you plan to make multiple assisted transactions.
Fees:
There's a $0.00 monthly account fee with unlimited free electronic transactions. Assisted transactions are $2.50 each. Express Business Deposits or Express Cheque Deposits are $0.60 each. You can opt for a $10.00 monthly fee, with 30 assisted transactions each month. Note that this is changing to 15 transactions in September 2024.
St George Bank – Freedom Business Account
St George Bank – Freedom Business Account is ideal if you mainly bank online or on mobile, only sometimes needing to bank in person in a branch.
Features:
Features include unlimited electronic transactions, and 30 in-branch transactions a month for no extra charge. You’ll get a Business Visa Debit card so you can keep your business and personal purchases separate.
Fees:
Open a new Freedom business account, and you’ll pay zero account-keeping fees for the first 12 months. Then, it’s only $10 a month.
At MYOB, you can directly connect your software to over 130 banks, financial institutions and credit card providers. You can set up bank feeds within MYOB Business and seamlessly connect your accounting software to your financial provider.
How to choose the best bank account for your business
Choosing the best bank account for your business depends largely on how you'll use it.
You might find it easier to open a business bank account with your current bank, but this isn't the only deciding factor.
Other things to consider are the availability of overdrafts, the ease of integrating with accounting software, and the lowest fees for the types of banking you need.
Best small business bank accounts FAQs
How does a business bank account differ from a personal bank account?
A business bank account differs from a personal one by being used entirely for your business. This makes it easier to keep accurate records and meet your tax obligations.
What are the disadvantages of business bank accounts?
Disadvantages of business bank accounts can include the need for more paperwork and compliance when signing up, like your ABN or ACN and business tax details. Some accounts may have minimum balance requirements and higher fees.
Can you use your personal bank account for business purposes?
You can use your personal bank account for business purposes if you're a sole trader, but it's still good practice to keep a separate business account. Not only does it make your business look more professional to customers and clients, but it streamlines your accounting processes.
If you're trading as a registered company, you legally need a separate business bank account.
Keep your business in check with a business bank account
Choosing the right account for your business depends on several factors, like whether you need strong interest rates, how many transactions you intend to make and if you are dealing with international clients and customers.
It doesn't need to be complicated, though. Our pick of the five best business bank accounts will help you choose the right option. MYOB Business customers can set up bank feeds with their financial institution, taking the stress out of sorting the books.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.