Part of having a business identity is to keep your business finances separate from your personal finances. Your business records will tally exactly with the bank records if the account is solely for business use. This helps you keep track of where your business is, financially, and be easier to prepare reports; tax returns and BAS statements.Many credit unions also offer business accounts, typically at lower rates than commercial banks. In some states, you don't have to be an employer or a member of an organization to join. You only have to be a resident in the state where the credit union is chartered.
Each bank and credit union will have its own business account, or accounts, for you to look at. All have a different fee structure to those in personal accounts; you are likely to have to pay a fee for each deposit, withdrawal and cheque.
While you're comparing financial institutions, don't forget to include the cost of checks and endorsement stamps in your comparison.
Some factors to consider in choosing your business account are:
1. Monthly fees
2. Deposit fees, including additional charges for depositing cheques
3. Access modes (e.g. will you get an ATM card)
4. Is there a credit option? Either credit card or overdraft facility
5. Withdrawal fees – including for bpay, direct debits, over counter and cheques
6. Convenience – where is the nearest branch? Nearest ATM? Is it easy to transfer to/from your personal account?
7. Can you access net banking? Phone banking?
8. Costs for money conversions if you have/expect many overseas transactions
9. Does it pay interest? Note many business accounts don’t pay interest, or at least not on small balances