If you’re starting a new venture or looking to improve how your business handles money, having the right business bank account can make all the difference.
Aside from being a place to store your cash reserves, it can also be used as a tool to make your day-to-day operations easier, streamline your bookkeeping, and even help your business grow more efficiently.
Yet with so many options on the market, how do you decide which account best suits your needs?
This guide will explore some of the main options available to help you find the right business bank account for your organisation.
OFX’s guide to the best business bank accounts
When looking for a bank account, it is easy to get lost in comparing the features and fees of what different institutions offer. For this reason, it’s worth simplifying the process by checking out OFX’s guide to the best business bank accounts.
This guide gives a clear rundown of some of the popular business banking options in Australia, by outlining what they offer and which types of businesses they’re best suited for.
It doesn’t matter if you’re a sole trader, a startup or an established company; it can help you quickly narrow down your shortlist.
Why a Business Bank Account Matters
Having a dedicated business bank account should be seen as a fundamental part of setting up your business for success.
For a start, it separates your personal and professional finances, which is crucial when it comes to tax time, applying for loans, or managing cash flow. Indeed, mixing business and personal transactions can create unnecessary headaches and make it harder to track profits or claim deductions.
Additionally, from a legal perspective, especially for companies and partnerships, a separate business account helps meet regulatory requirements and demonstrates that your business is being run professionally.
In many cases, clients and suppliers are also more likely to trust a business with an account under its own name than one that operates through a personal account.
Types of Business Bank Accounts in Australia
When it comes to business banking in Australia, there are several options available to you depending on how your business operates.
A business transaction account is the most commonly used. As it allows you to send and receive payments, pay bills, and manage everyday finances, it’s ideal for handling regular cash flow.
Business savings accounts are great for storing funds you don’t need to access every day, like money set aside for taxes, future investments or emergencies. For businesses looking to lock away funds and earn more interest, term deposits can be a smart option.
Additionally, if your business accepts card payments (whether online or in person), you may need a merchant account to process those transactions smoothly.
Key Features to Look For
When choosing a business bank account, it’s important to go beyond the brand and take a close look at the features that will actually impact your workflow.
While low or no monthly fees might be attractive, don’t forget to check the fine print for transaction limits or hidden charges. At the same time, if you use accounting software like Xero, MYOB or QuickBooks, look for banks that offer seamless integration because this can save you hours of admin time each month.
Online banking is essential for the smooth running of business these days, so make sure the bank’s app or web portal is user-friendly and offers tools like real-time transaction alerts, easy bill payments and the ability to manage users if you work with a team.
Also consider whether the bank provides access to merchant services, overdraft facilities or business credit cards, depending on your future needs.
Big Banks vs. Digital Banks
Australia’s Big Four banks (ANZ, NAB, Westpac and Commonwealth) offer comprehensive business banking services and long-standing reputations.
Overall, they’re well-suited to businesses that still prefer face-to-face support or require physical branches for cash deposits. However, they can be slower to innovate and often charge more in monthly fees or international transaction costs.
On the other hand, digital banks and fintech players like Revolut, Airwallex and Wise are making waves by offering lower fees, easy international payments, and advanced tech features.
These options are especially attractive for freelancers, ecommerce businesses and startups that need multi-currency accounts, streamlined invoicing or real-time budget tracking.
That said, their support options might not be as good as the major banks, and they may not offer in-branch services.
Questions to Ask Before Opening a Business Account
Before making a decision on which business bank account to open, it is worth taking a few minutes to ask yourself some key questions.
They should include:
- What are the ongoing fees?
- Is there a way to waive them by maintaining a minimum balance?
- How many transactions are included before you’re charged extra?
- Will the account support your international payment needs, if relevant?
It’s worth checking whether the account offers multiple user access, which is useful if your bookkeeper or staff need to log in.
You should also give thought to whether the account will still be a good fit as your business grows, because switching later can be time-consuming and temporarily problematic for your operation.
How to Open a Business Bank Account in Australia
Opening a business bank account in Australia is usually a simple process, especially for sole traders.
Typically, you’ll need an ABN, a valid photo ID, and proof of your business registration. If you’re registering as a company, you’ll also need your ACN and potentially more detailed documentation around your business structure and ownership.
Some banks let you complete the entire process online in under an hour, while others may require a quick in-person appointment or a follow-up call. Make sure to have everything ready before starting the application; otherwise, you may experience delays.