Opening a Business Bank Account: What You Need to Know
As a small business owner, you need a reliable and secure way to manage your finances. Opening a business bank account is one of the most critical steps in managing your finances. A business bank account helps you keep your personal and business finances separate, which makes it easier to manage your business's cash flow and tax obligations. In this blog post, we'll cover everything you need to know about opening a business bank account.
Why You Need a Business Bank Account
There are several reasons why you need a business bank account. First and foremost, it helps you keep your personal and business finances separate. This is important because it makes managing your business's cash flow and tax obligations easier. When you have a separate business bank account, you can easily track your business's income and expenses, which makes it easier to prepare your tax returns and manage your finances.
In addition to helping you manage your finances, a business bank account also enables you to build a business credit history. When you have a separate business bank account, you can establish a credit history for your business. This can be helpful if you need to apply for a business loan or line of credit in the future.
What You Need to Open a Business Bank Account
Opening a business bank account is similar to opening a personal bank account, but there are a few additional requirements. Here's what you'll need to open a business bank account:
Business name and registration: You'll need a registered business name and registration number. Depending on your business structure, you may also need to provide your partnership agreement or company constitution.
Identification: You'll need to provide identification for each authorised signer on the account. This can include a driver's license, passport, or other government-issued ID.
Business address: You'll need to provide a physical address for your business. This can be your home address if you're running your business from home or a separate business address if you have a commercial location.
Tax File Number: You must provide your business's tax identification number (TFN).
It's essential to check with the bank you're planning to open an account with to ensure you have all the necessary documents and information before starting the process.
Choosing the Right Bank Account
When choosing a business bank account, there are several factors to consider. Here are some things to keep in mind:
- Fees: Look for a bank account with low or no fees. Some banks may charge monthly maintenance, transaction, or ATM fees. Ensure you understand all the costs associated with the account before opening it.
- Features: Look for a bank account that meets your business's needs. For example, you may want a bank account with online banking, mobile banking, or the ability to accept credit card payments.
- Interest rates: Some business bank accounts offer interest on your balance. If you plan to keep a large balance in your account, look for an account with a competitive interest rate.
- Customer service: Look for a bank with good customer service. You want to reach someone quickly if you have questions or need help with your account.
- Reputation: Look for a bank with a good reputation. You want to work with a financially stable bank with a history of providing good service to its customers.
Opening a Business Bank Account* with Thriday
If you're looking for a new option for your business bank account, Thriday is an excellent choice. With Thriday, you can sign up for a $0 monthly business bank account* in minutes and access a great range of features that automate financial admin to save time crunching the numbers and allowing you to spend more time aiding your clients. With Thriday, you can also open up to 9 sub-accounts, allowing you to budget and allocate funds efficiently.
Thriday's business transaction account offers a range of features, including:
- Instant account opening: You can open a bank account* instantly with Thriday.
- Multiple bank accounts: You can create multiple accounts* to implement Profit First.
- Visa Debit card: You can make payments with your Visa Debit card wherever Visa is accepted.
- Cash deposits: You can deposit cash at Australia Post offices via Bank@Post.
Opening a business bank account is an important step to managing your finances. To make sure you pick the right bank account, you'll need to do some research, compare options and ultimately determine what is most important for your day-to-day needs. Whilst traditional banks continue to provide strong service offerings, new entrants in the market like Thriday, which has partnered with Regional Australia Bank, present a great option for small business owners.