When you need a business bank account

If you're operating as a:

  • sole trader – you don't have to have a business bank account, but it's a good idea to
  • partnership, company or a trust – you must have a separate bank account for tax purposes.

Can't remember if you're a sole trader, partnership, company or trust?

Search ABN Lookup to find out. You can search using your personal name, business name or Australian business number (ABN).

Benefits of a business bank account

With a business account, you'll find it easier to:

  • track your business expenses and income
  • control your business expenses and income
  • clearly show your business finances separate from your personal finances
  • get the information you need for your accountant or to meet your tax and reporting obligations.

A business bank account also makes your business look more professional to your customers.

Using one account for both business and private use

If you have the same account for both your personal and business banking, you must clearly identify any personal payments or expenses in your cash book. Find out more on the Australian Taxation Office’s (ATO) Setting up your business banking.

Using internet banking

Internet banking is now the preferred way to pay invoices. Banks use extensive security measures to protect your funds.

With internet banking you can:

  • make payments at any time
  • see all your transactions, making it easy to account for your debits and credits
  • set up direct debits and automatic payments for regular bills, reducing the risk of errors.

Want more?

Find out how to set up a bookkeeping system.

Read about protecting customer information.