Setting up your banking
Separate bank accounts are mandatory for partnerships, companies and trusts. Even for people operating as sole traders, a separate business bank account is a normal part of business and can make invoicing, payment and records systems easier to run and manage.
It is important you set up your systems so that your business and personal expenses are kept separate. For example, have a separate bank account and a separate business credit card.
When you set up your bank account, consider how the information in your deposit books and statements will help you report on your income tax and GST. Most financial institutions offer bank account packages suitable for small business. When you choose your account, consider:
- the type of business you run, including services you need and cash flow
- any transaction fees and account service fees
- whether purchases and sales are domestic or international
- interest, including interest rates on deposits and interest-free periods on credit cards
- fees and charges on business cards
- online services, such as EFTPOS.
Requirements for opening business accounts can vary, so check details by visiting the financial institutions or their websites.
Just like any other business record, you should keep your bank records for five years. Remember to keep one-off financial records too, such as loan documents or lease agreements and contracts.
You can do most payment transactions with us through online banking. Transacting with us electronically makes it easier to ensure your payments reach us on time, and refunds arrive quickly.
It is important you set up your systems so that your business and personal expenses are kept separate. A separate business bank account is a normal part of business and can make invoicing, payment and records systems easier to run and manage.