Do I need a business bank account?
I’M JUST A SOLE TRADER, WHY WOULD I NEED A BUSINESS BANK ACCOUNT?
Although it may appear easier to keep your business transactions within your personal account it can actually complicate things. Whilst there are no legal obligations for a sole trader to open a business bank account, there are many benefits in doing so.
1. Cash flow
Easily track and manage your business income and expenses. Using personal bank accounts can create cash flow confusion as there’s no clear separation of business income and expenses.
2. Tax time
Separating personal and business transactions allows for clean record keeping. Tax write-offs require proof of purchase*, therefore separating funds provides clarity.
Appear more professional and build trust by receiving and making payments in your business name. When money is deposited customers can see the business linked with the account. Initiate a trusted relationship with your customers from early on, appear established and professional.
4. Not a hobby
By establishing a business dedicated bank account it provides proof to the government that the work is legitimate and intends to make a profit.
Most business accounts allow more than one person to be authorised to act on behalf of the business, representatives of the business can authorise card transactions and make deposits relieving burden from the business owner.
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No matter what stage your business is at, ANZ's business bankers can help. ANZ will get to know you and your business and offer smart, personalised banking ideas and solutions.
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*Business.gov.au. (2018). Tax deductions. Retrieved from: https://www.business.gov.au/info/run/finance-and-accounting/accounting/tax-deductions
The Honcho service is provided by Business Switch Pty Ltd ABN 83 134 235 304 (trading as Honcho). ANZ Business Accounts are provided by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357522 (AFSL No. 238277). Honcho and ANZ are separate legal entities. ANZ does not have any liability to you in respect of the Honcho service; any information, product or service offered by any third party on or through the Honcho service website; or any other services provided by Honcho. Similarly, Honcho does not have any liability to you in respect of services provided by ANZ.