Top 5 best Australian business bank account in 2023
Choosing the right business bank account is a critical decision that entrepreneurs have to make.
Determining the right fit for your business is not an easy task given that there are so many different options available out there in the Australian banking market.
There are several contenders to choose from when deciding the best Australian business bank account. However, the choice is not always uniform.
The best business bank account Australia has to offer may differ from business to business, depending on specific requirements.
Why should businesses have a business bank account?
1. Establishes business credibility
Using personal finances to pay for expenses related to your business is considered to be unprofessional practice in the business sector. Your business might come across, to clients, as insincere or hastily operated.
Having a business bank account at your disposal can help avoid this impression.
When you use a business bank account to manage your company’s finances it exudes a sense of credibility, both amongst your employees as well as your clients or customers.
2. Easier tax preparations
A business bank account is also a necessary instrument that can make tax preparation easier for your company. The first thing a business bank account does is that it helps you keep all business expenses and incomes logged in one place.
By doing so you help out your accounting teams a lot because all they need to do is link your business bank account with a tax preparation software that can handle most of the hard work.
3. Line of credit
Having access to a line of credit and at the same time maintaining a good credit score are two very important functions of running a business.
By getting a business bank account you can establish functional relationships with the associated bank.
This can help you obtain an easy, flexible line of credit when you require it. Additionally, a business bank account also makes it easier for you to track and improve your credit standing.
4. Monitor your spending
With a business bank account at your disposal, you can track and manage all your company’s expenditures.
Business bank accounts often come equipped with expense management software that helps you monitor all your business spending from one comprehensive platform.
This software updates expense records in real-time so that you get an accurate overview of how company finances are being utilized.
5. Spend less time and money on admin
The best business bank accounts always help business owners cut down on the time and money they spend on administrative tasks such as data entry, expense reporting, and expense reconciliation.
The software that these bank accounts come equipped with helps to consolidate all your financial data into one uniform platform. This makes it much easier for accounting and finance teams to carry out administrative tasks.
6. Prepares you for the future
The primary function of a business bank account is to help keep your personal and business finance separate. By doing so these accounts prepare and protect you from any legal obligations in the future, for example, debt liability.
They also consolidate all your financial data and provide in-depth insights and reports on company spending. Using these reports and data you can map projections for the future of your company and plan accordingly.
7. Easy and simple deductions
Deductions at tax time become especially easy and simple if you have been using a business bank account to manage your company finances.
This is because these bank accounts ensure your personal and your business finances are always kept separate.
Additionally, if your business expenses are to legally count as tax deductions you need to prove to tax authorities that your business is legitimate and not just a hobby. Getting a business bank account gives major evidence in proving the same.
5 Best business bank account in Australia
1. ANZ Bank Business Extra Account
Overview: ANZ or Australia-New Zealand Bank is one of the big 4 banking providers in the country and the ANZ Bank Business Extra Account is most definitely one of the best Australian business bank account available.
It comes with a monthly service fee of $22 and international transactions are charged at 3%. There is also an international ATM fee of $5.
Features: This business bank account can sync with a variety of platforms including Google Pay, Apple Pay, and Samsung Pay, as well as accounting platforms such as MYOB and Xero.
With this account, you also get an ANZ Business Visa Debit Card. Additionally, ANZ provides overdraft facilities as well.
Pros and Cons: One major pro of this bank account is that it is secured by ANZ Falcon security. The con, however, is that international transactions can become expensive.
2. Commonwealth Bank Business Transaction Account
Overview: The Commonwealth Bank is another big 4 player in the Australian banking market. The Commonwealth Bank Business Transaction Account is one of the best business bank accounts Australia has to offer and comes with no monthly fees required.
Other associated costs include assisted transaction fee of $3, an overdraw fee of $15, international ATM fees of $5 plus 3%, and an international transaction fee of 3%
Features: This business bank account can also sync with a variety of platforms such as Google Pay, Apple Pay, and Samsung Pay as well as accounting platforms such as MYOB and Xero.
There is no minimum account balance required, a Visa debit card comes linked with the account, you get banking alerts in real-time and there is no limit on transactions.
Pros and Cons: The pro of using this business bank account is the no limit on transactions. The con is that there is no facility for local international payments (SWIFT only).
3. National Australia Bank Business Everyday Account
Overview: The third member of the big 4 banking providers club in Australia is the NAB or National Australia Bank. If you are trying to decide which bank is best for business account then the National Australia Bank Business Everyday Account is a definite contender.
It only comes with a $10 monthly fee, there are no other obvious costs associated.
Features: This business bank account comes with a NAB Business Visa Debit Card. There are no costs associated with assisted transactions and no fees charged for ATM use anywhere. You can also make unlimited electronic transactions.
Pros and Cons: A significant pro of this business bank account is the low costs that are associated with it. The con, however, is that NAB provides lesser features than other providers.
4. Westpac Bank Business One Low Plan
Overview: Westpac completes the set of big 4 banking solutions providers in Australia. The Westpac Bank Business One Low Plan it offers is a great bank account option for businesses.
It comes with a monthly fee of $10, foreign ATM use comes with $5 added to the surcharge, the fee for international transactions is set at 3%, and there is an overdraw fee of $15 and other additional costs.
Features: The most prominent features of this account include no limits on electronic transactions, 25 assisted transactions, a complimentary online invoicing tool, a business mastercard, and syncing with various accounting platforms.
Pros and Cons: The unlimited electronic transactions are a definite pro whereas the various associated costs can be a major con.
5. Great Southern Bank Everyday Business Account
Overview: The Great Southern Bank Everyday Business Account has been developed specifically to help businesses manage their everyday spending needs. It is an excellent option, especially for small businesses, because it comes with no requirement for any monthly fees and very minimal associated costs.
Features: The Great Southern Bank Everyday Business Account has included online banking facilities, a linked Visa debit card, linking with various accounting software, overdraft facilities, and payment options like Tap and Pay, Google Pay, Apple Pay, or Samsung Pay.
Pros and Cons: The minimal associated costs with this account is a significant pro whereas the con is that it does not provide as many features and support as the other providers do.
Are you looking for best bank account for your e-commerce business? Then, check out our article on best business bank account for eCommerce business in Australia and choose the best one for your business.
How to choose the best business bank in Australia
Monthly fee
When you are deciding which is the best bank for a business account you have to consider the monthly fees that you will have to pay. While it might seem like a small cost at first the monthly fees of your business bank account can add up to a pretty big amount.
International fee
International fees and costs are an especially important factor to consider if your company works with a lot of international clientele. Different costs like international transaction fees, foreign ATM charges, and foreign surcharges are all important costs to consider as they can all add up.
Account limits
You should also consider the limitations that these accounts come with. You need to check whether there are any transaction limits, spending limits, cost caps, and so on. Account limitations are important to consider because they will determine how fluidly you will be able to use the account.
Online usability
With everything going online nowadays your bank account too must have online usability. Online usability has become an almost compulsory requirement given how digital and borderless our world has become. It would be a bonus if your business bank account was also cloud-enabled.
Reviews
While it may be difficult to gauge the impact of a bank account provider at first you can, however, form an opinion based on the experience of others. This is where reviews come in, both online and offline. Make sure you do your market research on reviews and the reputation of the chosen provider.
Overdraft facility
Having an overdraft facility at your disposal can be a lifesaver when you find yourself in difficult financial situations. Not all business bank account providers come with an overdraft facility. Make sure you gauge the need for an overdraft facility for your business and then opt for a provider accordingly.
Customer support
Getting to work with a business bank account, especially a new one, can be difficult without the right amount of customer support from the provider. Not only during the implementation but throughout the time you use a business bank account issues will come up and to solve them you will need help in the form of customer support.
Other credit features
Banks also provide other credit features such as flexible lines of credit, loans, and so on. Start by assessing your present or future need for credit facilities and make your choice based on your findings and financial situation. If you want a safe bet, however, going with a bank account provider that does provide credit facilities is always a good option.
Why choose Volopay business account in Australia
If you are looking for a business bank account provider in Australia that is both feature-rich and at the same time well reputed then Volopay is your best bet.
Volopay provides one of the best Australian business bank accounts that can help improve the global reach of your business.
You can use Volopay business accounts to hold and spend money in multiple different currencies at the same time. Volopay’s multicurrency business accounts also offer a 0$ transfer fee, meaning you won’t be paying any extra SWIFT or processing fees.
Volopay business accounts also come with corporate cards. You can use these cards to streamline and control business spending easily. In fact, you can issue an unlimited number of virtual cards completely free of cost.
Last, but definitely not least, with Volopay your company gets access to an extremely easy, flexible line of credit as well.
Australia has plenty in terms of business bank account providers. Different providers come at different price ranges with differing levels of service and features offered.
It is difficult to outline one single bank account provider as the best solution for all businesses. The best solution will always differ according to business goals, requirements, and preferences. Make sure you do thorough research before making a choice.