Choosing the best bank for a business account is a critical decision for any company, whether you’re a startup, a growing business, or an established enterprise. The right bank account can help manage cash flow, reduce fees, and support business growth, while the wrong choice can lead to unnecessary costs and administrative difficulties.
With so many banking options available, how do you choose the best bank for your business account?
This guide covers what to look for, key features to consider, common pitfalls to avoid, and how Budgetly can help businesses manage expenses effectively.
- What is a business bank account?
- Who needs a business bank account?
- When should a business open a bank account?
- Why choosing the right business bank matters
- Key features to consider when choosing a business bank
- Things to watch out for when selecting a bank for your business
- Special considerations for small businesses
- Best banks for business accounts in Australia
- How Budgetly helps businesses manage their expenses efficiently
- Final thoughts on choosing the best bank for your business account
What is a business bank account?
A business bank account is a financial account specifically designed for companies. Unlike personal bank accounts, these accounts offer specialised services tailored to business needs, such as:
- Transaction limits suited to business operations
- Payroll and supplier payment capabilities
- Multi-user access for employees and accountants
- Integration with accounting software
- Options for business credit, loans, and overdrafts
Having a business account helps separate personal and company finances, making financial management more efficient.
Who needs a business bank account?
A business bank account is essential for:
- Sole traders – While not legally required, it makes managing business finances easier.
- Partnerships – Ensures transparency and clear financial records between multiple partners.
- Small businesses – Needed for processing payments, paying expenses, and tracking revenue.
- Companies (Pty Ltd) – Required by law for incorporated businesses to keep business funds separate from personal funds.
Even if you operate as a freelancer or self-employed professional, having a dedicated business account can improve financial tracking and tax reporting.
|
Looking to improve expense management? Explore free Budgetly resources at your fingertips. 
|
When should a business open a bank account?
It’s best to open a business bank account as soon as possible to avoid financial complications. Consider opening one when:
- Registering your business – If forming a company or partnership, a business account is necessary.
- Accepting payments from customers – Helps separate business and personal transactions.
- Hiring employees – Makes payroll management smoother.
- Applying for business loans – Many banks require an existing relationship to approve loans or overdrafts.
Early setup ensures a well-organised financial structure from the start.
Why choosing the right business bank matters
Not all business bank accounts are the same. The right bank can:
- Reduce fees and transaction costs – Some banks offer low or no-fee business accounts.
- Improve financial control – Business accounts provide better oversight of income and expenses.
- Offer credit and lending options – Access to business loans, overdrafts, and credit lines when needed.
- Enhance security – Fraud protection, multi-user access, and transaction tracking improve financial security.
- Integrate with accounting software – Helps simplify bookkeeping and tax compliance.
Choosing the best business bank supports financial stability and growth.
Key features to consider when choosing a business bank
When selecting the best bank for a business account, look for these essential features:
1. Account fees and charges
- Monthly account fees – Some banks charge fees, while others offer fee-free business accounts.
- Transaction fees – Look for accounts with free or low-cost transactions.
- Overdraft and interest fees – Important if you plan to use overdraft facilities.
2. Online and mobile banking accessibility
- User-friendly digital banking – Essential for businesses managing finances remotely.
- Mobile app availability – Helps monitor transactions on the go.
- Real-time transaction tracking – Important for keeping an eye on cash flow.
3. Business credit and lending options
- Overdraft facilities – Provides flexibility for managing short-term cash flow gaps.
- Business loans – Some banks offer exclusive loan options for business account holders.
- Business credit cards – Useful for managing expenses and earning rewards.
4. Integration with accounting tools
- Automatic syncing with accounting software (e.g., Xero, MYOB, QuickBooks) – Reduces manual data entry and improves accuracy.
5. Multi-user access and security features
- Allows multiple users with different permission levels – Ideal for finance teams, accountants, or employees handling payments.
- Fraud protection and security measures – Ensures safe business transactions.
By focusing on these key features, businesses can choose the right bank for their needs.
Things to watch out for when selecting a bank for your business
When opening a business account, avoid these common pitfalls:
1. Overlooking hidden fees
Some banks charge for transactions, withdrawals, or foreign currency exchanges. Always check the fee structure.
2. Choosing a bank without digital banking options
If a bank has limited mobile or online banking capabilities, it may cause inconvenience in managing business finances.
3. Ignoring transaction limits
Some business accounts have caps on the number of transactions before additional fees apply.
4. Not considering future business needs
Select a bank that offers scalability in case your business expands or requires more financial products.
5. Limited customer support
A bank with poor customer service can make resolving issues difficult.
Carefully reviewing these factors prevents future banking headaches.
Special considerations for small businesses
When it comes to a business bank account for small business, you should look for the best small business bank account to cater to the unique challenges that require customised financial strategies.
Here are key considerations small business owners should prioritise:
1. Low or no monthly fees
For small businesses operating on lean budgets, every dollar counts. Monthly account-keeping fees can add up quickly, especially if you’re not making frequent transactions or maintaining a high balance. Look for banks that offer fee-free business accounts, or those that waive fees if certain conditions (like minimum monthly deposits) are met.
2. No or low minimum balance requirements
Some business bank accounts require maintaining a minimum balance, which can be restrictive for small businesses that experience cash flow fluctuations. An account that allows flexibility without penalties for dipping below a certain amount is usually a better fit.
3. Simple online and mobile banking
Most small business owners wear multiple hats, which means they need fast, reliable, and intuitive access to their finances from anywhere. Prioritise banks with user-friendly online platforms and mobile apps, especially those that support invoicing, real-time notifications, and integration with accounting software.
4. Easy access to customer support
Unlike large organisations with dedicated finance teams, small businesses often rely on timely customer support to resolve issues quickly. Choose a bank that offers strong local support, dedicated business banking assistance, or 24/7 live chat to minimise disruptions when you need help.
5. Integration with accounting tools
Keeping financial records accurate and up to date is critical—but also time-consuming. Small businesses benefit from accounts that integrate with accounting platforms like Xero, MYOB, or QuickBooks, allowing for automated transaction syncing and simplified reconciliation.
6. Support for digital payments and POS systems
If you accept customer payments digitally or via point-of-sale systems, make sure your business bank account is compatible with your payment processors or eCommerce tools. Some banks also offer merchant services that bundle banking and payments in one package, saving time and reducing complexity.
7. Access to small business loans or overdraft facilities
Even if you don’t need financing today, having a banking partner that supports small business lending or flexible overdraft options can make a big difference when it comes time to grow. Look for accounts that offer easy transitions into lending products if and when the need arises.
Best banks for business accounts in Australia
Several banks in Australia offer business-friendly accounts with competitive features. Some of the best options include:
- Commonwealth Bank – Suitable for small businesses, with digital invoicing tools and cash flow management features.
- ANZ Business – Offers business loans, overdrafts, and tailored banking solutions.
- Westpac Business – Provides multi-user access and online invoicing features.
- NAB Business – Low-fee business accounts with transaction flexibility.
- Macquarie Business Banking – Ideal for businesses that require high-volume transactions and digital banking.
Each bank has its own advantages, so businesses should compare features based on transaction needs, lending options, and fees.
How Budgetly helps businesses manage their expenses efficiently
While choosing the right business bank account is essential, having an expense management tool can further improve financial control. Budgetly helps businesses by:
1. Real-time expense tracking
Monitor and categorise every business transaction in one place.
2. Virtual prepaid business cards
Issue virtual prepaid cards for employee expenses, subscriptions, or vendor payments.
3. Spending controls and approval workflows
Set custom limits and approvals for different business expenses.
4. Digital receipt management
Upload receipts and match them with transactions for accurate financial records.
5. Accounting integration
Sync Budgetly with accounting tools like Xero or MYOB for seamless financial management.
With Budgetly, businesses can gain better control over expenses, reduce inefficiencies, and improve financial reporting.
Final thoughts on choosing the best bank for your business account
Selecting the best bank for a business account requires careful evaluation of fees, banking features, integration options, and customer support. The right business account can help businesses manage finances effectively and support future growth.
Pairing a business bank account with Budgetly’s expense management tools ensures greater financial visibility, secure transactions, and efficient expense tracking.
Take control of your business finances today with Budgetly!
Why not schedule a demo with us today, or watch a 10-minute recorded demo!
