Choosing the best bank for your small business

By Sharon

May 21, 2021
MicroChilli best banks for small business

 

Starting a business and want to know what the best bank is for your business account? There are so many options when it comes to banking, and you don’t have the time so we are going to break this down for you!

Starting with…

Do I need a separate bank account for my business? 

One of the most important things you need to do when setting up a business is ensuring you open a separate bank account for the business.

Even if you are a sole trader, or a freelancer, it is important to keep separate bank accounts for these reasons: 

  • Making bookkeeping easier
  • Avoid additional fees due to complexities of having to sift through personal and business transactions
  • Easier managing of your expenses and cash flow
  • Easier management of tax deductions at tax time 

 

 

Which bank is best for small businesses? 

A recent report from Mozo (The Money Saving Zone) states that Aussie businesses are missing out on higher saving rates due to our beliefs that the best choice are the big 4 banks. When surveyed Aussies stated that they believed that the big 4 banks were the place they felt safer leaving their money. 

Do your research! These big 4 banks are not always the best when it comes to business banking, especially for small businesses.

 

What to look for in a business bank account? 

What should we consider when choosing a business account and comparing banks?

  • Interest rates: Depending on the amount inside a business account the interest rates can vary. This can mean higher interest rates may not be the best for your business
  • Features: Different banks come with a variety of different features, depending on the size of your business you will have to assess what different types of features the bank has to offer and if this will work for you.
  • Account fees: It’s important to think about how much account fees are. Are these fees going to work with your business?

 

 

As a sole trader or small business what should you be looking for?

  • Zero account fees
  • Unlimited transactions 
  • No minimum balance

You most likely don’t need fancy features like a cheque book or even to visit a branch, and you want to ensure you are getting excellent customer service should there ever be an issue, and be able to apply online! 

 

Our favourite 3 small business bank accounts

 

So our favourite Zero Fee business bank accounts for sole traders excluding the Big 4 are:

AMP Bank Access Account

  • Fees: $0
  • Transactions: Unlimited
  • Minimum Balance: $0
  • Apply Online: Yes

Heritage Bank

  • Fees: $0
  • Transactions: Unlimited
  • Minimum Balance: $1
  • Apply Online: No

People’s Choice

  • Fees: $0
  • Transactions: 20 free per month
  • Minimum Balance: $0
  • Apply Online: Yes

If you have any questions simply book a free consultation or browse our low fixed fee bookkeeping packages and we will help you get started! 

 

 

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