{"id":13029,"date":"2021-09-14T05:30:03","date_gmt":"2021-09-14T05:30:03","guid":{"rendered":"https:\/\/swoopfunding.com\/au\/?post_type=blog&p=13029"},"modified":"2024-05-27T13:12:42","modified_gmt":"2024-05-27T13:12:42","slug":"why-do-i-need-a-business-current-account","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/au\/blog\/why-do-i-need-a-business-current-account\/","title":{"rendered":"Why do I need a Business Current Account?"},"content":{"rendered":"

The ongoing pandemic has provided many frustrated entrepreneurs with the time and focus to actually start their own businesses. And with many of us already being freelancers or self-employed<\/a>, it\u2019s important to understand the benefits of keeping your personal and work finances separate.<\/p>\n

But not all bank accounts are the same, and we\u2019re here to ensure you\u00a0choose the right bank account<\/a>\u00a0for your individual needs.<\/p>\n

What\u2019s the difference between a personal and Business Bank Account?<\/strong><\/h4>\n

There\u2019s nothing particularly special about a Business Current Account \u2013 at its most basic level it\u2019s just like your personal bank account, but it\u2019s one you open solely for your business income and expenditure. But as your business grows, and your finances become potentially more complex, you can begin to enjoy benefits such as invoicing, payroll management, as well as assistance such as accounting and tax returns.<\/p>\n

But do I really NEED a Business Current Account?<\/strong><\/h4>\n

This is a commonly asked question amongst our early stage startup customers here at\u00a0Swoop<\/a>, and we want to be as clear as possible. You definitely DO need an account if you\u2019ve set up your business as a company, partnership or trust in Australia. This means that your business is legally separate from you, so you shouldn\u2019t be using a personal account for its expenses.<\/p>\n

Other businesses, including sole traders<\/a> and freelancers, don\u2019t necessarily need a business account, however it is still advisable to save you from juggling your business\u2019s income and expenditure with your own, especially if your self-employment income is the lion\u2019s share of your total income.<\/p>\n

In a nutshell, if you\u2019re offsetting your business expenses against income, then you really ought to be looking for a separate business account.<\/p>\n

Opening a Business Current Account \u2013 the good and the bad<\/strong><\/h4>\n

Let\u2019s start with the good. There\u2019s the obvious stuff you already know about such as setting up and making payments, receiving funds, and making debit card transactions.\u00a0<\/strong>But by keeping your business income and expenses separate you\u2019ll find it a whole lot easier when it comes to\u00a0doing your tax return. The information and numbers you need are all in one account, saving you having to trawl through your personal expenses trying to determine what was and wasn\u2019t a legitimate business expense.<\/p>\n

This may not seem a huge benefit right now, but if ATO decide to investigate your business finances, it means they have all they need in one place and won\u2019t require your personal finances to be reviewed too.<\/p>\n

Another consideration when looking at \u2018the good\u2019 is by opening a separate Business Bank Account, you won\u2019t break your personal bank\u2019s terms and conditions. A Personal Current Account is exactly that \u2013 for personal use. And most banks don\u2019t actually allow you to use it for business transactions.<\/p>\n

However, the biggest benefit to having a Business Current Account is that you\u2019ll build your business credit rating. If you decide to apply for a\u00a0business loan<\/a>\u00a0or\u00a0business credit card\u00a0<\/a>then it makes far more sense to have built some credit history for your business. Not having a Business Account will mean you\u2019re not eligible for many business financial products.<\/p>\n

What are the downsides of opening a Business Bank Account?<\/strong><\/h4>\n

Now you know why you SHOULD open an account, there are a few factors worth considering. The most obvious is that many banks will charge you fees. However, these fees come in different shapes and sizes and by carefully\u00a0comparing and selecting the most appropriate account<\/a>\u00a0for your needs, you could find you\u2019re not paying anything at all.<\/p>\n

Swoop keeps an\u00a0updated table of the best Business Bank Accounts for startup businesses<\/a>, so it\u2019s definitely worth a visit.<\/p>\n

The only other potential downside, which is not really much of a downside, is that you\u2019ll have two accounts to manage, so will need to be a little more organised. More cards, more passwords \u2013 but it\u2019s well worth a little extra admin now to save you time and effort in the future as identified above.<\/p>\n

Which is the best Business Current Account for me?<\/strong><\/h4>\n

Firstly, decide what you want from your bank account. Do you need accounting help? Do you need to make a lot of cash deposits? Do you need to make international transactions? (If yes, you should\u00a0check out online foreign exchange providers<\/a>\u00a0before using your bank). Do you need to pay in cheques? Do you want a high street branch? Whatever your individual business needs are, it is important to\u00a0compare the available Business Current Accounts<\/a>\u00a0and match them with these needs.<\/p>\n

As a final observation the new online banks are working incredibly hard to keep costs down, service levels high and many provide hugely appealing perks and benefits. So, think beyond the high street, don\u2019t just bank where you\u2019ve always banked because it feels easier \u2013 shop around, match your bank to your business and get the best Current Account for you!<\/p>\n","protected":false},"excerpt":{"rendered":"

The ongoing pandemic has provided many frustrated entrepreneurs with the time and focus to actually start their own businesses. And with many of us already being freelancers or self-employed, it\u2019s important to understand the benefits of keeping your personal and work finances separate. But not all bank accounts are the same, and we\u2019re here to […]<\/p>\n","protected":false},"author":54,"featured_media":13020,"comment_status":"closed","ping_status":"closed","template":"","category":[],"class_list":["post-13029","blog","type-blog","status-publish","has-post-thumbnail","hentry"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m..png",1232,820,false],"thumbnail":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-150x150.png",150,150,true],"medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-300x200.png",300,200,true],"medium_large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-768x511.png",768,511,true],"large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-1024x682.png",1024,682,true],"1536x1536":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m..png",1232,820,false],"2048x2048":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m..png",1232,820,false],"image_blog":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-408x252.png",408,252,true],"image_blog_full":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-1232x660.png",1232,660,true],"image_podcast":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-397x298.png",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-30x20.png",30,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-840x480.png",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-1024x500.png",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2021\/07\/Screenshot-2021-07-28-at-12.22.09-p.m.-80x53.png",80,53,true]},"post_excerpt_stackable_v2":"

The ongoing pandemic has provided many frustrated entrepreneurs with the time and focus to actually start their own businesses. And with many of us already being freelancers or self-employed, it\u2019s important to understand the benefits of keeping your personal and work finances separate. But not all bank accounts are the same, and we\u2019re here to ensure you\u00a0choose the right bank account\u00a0for your individual needs. What\u2019s the difference between a personal and Business Bank Account? There\u2019s nothing particularly special about a Business Current Account \u2013 at its most basic level it\u2019s just like your personal bank account, but it\u2019s one you…<\/p>\n","category_list_v2":"Uncategorized","author_info_v2":{"name":"ayeshakhan1111","url":"https:\/\/swoopfunding.com\/au\/author\/ayeshakhan1111\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/13029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/comments?post=13029"}],"version-history":[{"count":4,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/13029\/revisions"}],"predecessor-version":[{"id":36420,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/13029\/revisions\/36420"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media\/13020"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media?parent=13029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/category?post=13029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}