You should set up a business bank account to help you to separate your business finances from your personal finances. A separate business bank account makes it easier to track and control your business's income and expenses.
Determine your banking needs
Speak to your financial adviser or accountant about the accounts, products and services you need to run your business. Discuss which transaction banking and merchant facilities your business needs.
Once you have listed your needs, ask your preferred banks for a competitive rate on this package. Bank fees can vary considerably so do your research to find the best deal for your business.
Having the right transaction banking products can improve your cash flow and streamline your business operations. You must be able to access and monitor your business's financial transactions, and transaction banking products help you to do this. Common transaction banking products include:
- business accounts (accessible by cheque, ATM, EFTPOS, phone or internet banking)
- overdraft and other limit facilities
- cheque book
- payroll processing.
Learn more about taking online payments.
Using merchant facilities makes it easier for your customers to pay for products or services as they can use their credit or debit card (i.e. they don't need to use cash). Merchant facilities improve your cash flow as funds are available quickly.
An EFTPOS terminal is the most efficient way to offer merchant facilities. Customers can visit your store and swipe their credit or debit card at the counter. If you take payment over the phone, you can also manually process credit or debit card payments through EFTPOS.
- Seek advice from your accountant about your banking needs.
- Research the best deal on banking products and services to suit your business.
- Ensure you have a direct contact at your bank (e.g. an account manager) who can help you to manage your banking, and answer any questions you may have.
- Always read the product disclosure statement (PDS) before signing any agreements for financial services. If you need clarification, speak to your accountant.