6 best business bank account in Australia (2024)
Every Australian business should consider opening a business bank account to streamline all finance processes and keep them separate from the owner’s personal finances.
Amongst the business bank accounts available in Australia, choosing the best business bank account for your organization is key to ensuring that your business is well-supported and all your needs are met.
What is a business bank account?
A business bank account or a corporate account is specifically for businesses and is operated under the company name. It is exclusively used to process all business-related transactions. These are almost similar to personal accounts. However, features that can be accessed through a business bank account are much more advanced than those of a personal bank account.
For example, you can make business payments and transactions in international currencies and process bill payments and salary payments. Business bank accounts are available for different business types, like partnerships, sole proprietorships, and limited companies.
Best business accounts in Australia in 2024
1. Volopay
● Overview
No need to juggle too many accounts and financial tools—Volopay offers the one-stop solution for all your financial needs. With multi-currency wallets, Volopay is the best business account to help you cut back on the hassle of managing your business finances.
● Features
What makes the Volopay business account stand out from other business bank accounts is that you’re also getting a smart financial tool with your Volopay account.
Get a multi-currency account that allows you to manage business finances both locally and internationally.
Manage your vendors, accounts payable, and daily expenses. Real-time tracking, multi-level approval workflows, and accounting integrations are all helpful features readily available to you.
● Advantages
Streamlined expense management, customizable spending limits, and real-time transaction monitoring. Volopay also has an app for easy access wherever you are.
● Limitations
Volopay has no physical branches, meaning that all your spend management has to be done online. You’ll have to make sure you have the necessary devices and a good internet connection.
● Documents required to apply for business account
You’ll be able to apply for a Volopay account online. Be sure to provide your proof of identity, proof of address, and company registration. You’ll also need your ACN.
● Target audience
Startups, tech companies, and SMEs focusing on efficient expense management and digital financial solutions.
2. ANZ business account
● Overview
Aimed to simplify your daily business transactions, you can choose one of the two ANZ business bank accounts depending on which is best suited for your business.
● Fees
Depending on which ANZ business bank account you create, you’ll have a different fee structure. The ANZ Business Essentials account has an AUD 0 monthly service fee, but staff-assisted transactions, cheque transactions, and manual merchant deposits will cost you AUD 2.50 each. The higher tier, the ANZ Business Extra, has a monthly service fee of AUD 10 but allows you 20 free ANZ transactions monthly.
● Features
Get a free ANZ Business Visa Debit card and access to the ANZ app to manage your business finances better. Save time with account reconciliation by linking your ANZ business account with the accounting software you use.
● Advantages
Robust online and mobile banking platforms, personalized lending options, and a wide network of branches. If needed the bank also provides affordable financing options in the form of flexible loans.
● Limitations
You can only hold funds in AUD and overseas transactions will cost you fees that will add up over time.
● Documents required to apply for business account
To apply, you’ll need to be the owner of a business operating in Australia. You will also have to be over the age of 18 and able to provide two forms of ID.
A passport and your driver’s license, for example, would suffice. Your ACN or ABN is needed for verification.
● Target audience
Small to large businesses looking for comprehensive banking solutions and personalized lending options.
3. Commonwealth Bank business account
● Overview
Commonwealth Bank offers a suite of business banking products, catering to startups, SMEs, and larger enterprises. The bank has more than 800,000 shareholders and over 52,000 employees. They offer a full range of financial services to help all Australians build and manage their finances, making them one of the best business bank accounts in Australia.
● Features
While assisted transactions net you a fee, you get unlimited access to free electronic transactions. With the CommBank App, you can also manage your business finances from anywhere. Get Smart Alerts to stay on top of your account balance and access business analytics tools and accounting integration easily.
● Advantages
Extensive branch and ATM network, innovative digital banking tools, and customizable business packages. They also provide low-rate credit cards and business debit cards. You can also opt for business loans and specific working capital loans.
● Limitations
International transactions can be expensive, with a 3% fee of your transaction value. Withdrawing money at CommBank ATMs outside of Australia will also cost you AUD 2 each, which will add up.
● Documents required to apply for business account
If you’re new to CommBank, you’ll need to present your ID. Otherwise, you’ll need your ABN or ACN (when applicable). Private companies also need to confirm their directors, owners, and trustees’ details.
● Target audience
Startups, growing SMEs, and larger corporations seeking comprehensive financial solutions.
4. National Australia Bank business account
● Overview
NAB provides a range of business banking solutions, targeting businesses of various sizes and industries. The bank supports more than eight and a half million customers in Australia and overseas across personal accounts, small, medium, and large businesses, private clients, and government and institutional activities.
● Features
Get unlimited electronic transactions regardless of what account plan you’re on. NAB also has banker-assisted transactions, deposits, and cheques that are considerably cheaper than the other major Australian banks. With an NAB business account, you can get seamless accounting integration and a free NAB Visa business debit card.
● Advantages
Diverse business loan products, dedicated business support, and competitive interest rates on savings accounts.
● Limitations
Compared to other major banks, NAB offers fewer features. It’s best suited for smaller businesses looking for simple banking.
● Documents required to apply for business account
You need at least two ID documents, which you can choose between an Australian passport, driver’s license, or Medicare card. Present your ABN or ACN and address details for all directors.
● Target audience
SMEs, larger enterprises, and businesses seeking personalized financial solutions.
5. Westpac business bank account
● Overview
Like other Australian banks, Westpac offers two tiers of business bank accounts. Depending on whether you prefer banking online or through a bank branch, one of the two options can be the right choice for your business.
● Features
Manage your bank account online or through the Westpac app. You can set up bank fees to be directly uploaded to your accounting software and temporarily lock your business debit card for up to 15 days without having to go to a bank branch.
● Advantages
Strong digital banking platforms, customized financial solutions, and comprehensive lending options.
● Limitations
Other than the non-electronic banking fees, there is a hefty interest rate of 15.01% if your debit account becomes overdrawn without prior arrangement or approval from the bank. Make sure to always keep a close eye on your balance.
● Documents required to apply for business account
Depending on your business structure, you’ll need different documents. A driver’s license or passport will typically be required for all customers.
Every signatory will have to provide an ID. For companies, you’re required to submit your company registration, ACN, and details of every beneficial owner.
● Target audience
SMEs, larger businesses, and enterprises seeking digital banking innovations and personalized financial services.
6. Wise business account
● Overview
The Wise business account allows you to hold money in 9 different currencies and transact internationally with over 70 countries. Pay local and foreign vendors and employees easily.
● Features and advantages
Wise is a banking alternative that allows you to make local and international payments in just a few clicks. You get a dashboard that you can give your finance team access to in order to help you manage your finances. With an optional debit card at an extra cost of AUD 6, you can also make in-store payments.
● Limitations
Wise only allows you to have one debit card per business account. Keep in mind Wise also isn’t a bank and doesn’t offer overdraft facilities.
● Documents required to apply for business account
If you are a sole trader, a freelancer, a partnership, or a company, you’ll be able to apply for a Wise business account. You can easily sign up online. Documents that you’ll have to submit include your business registration, proof of residence, documentation on who owns the company, as well as the owners’ ID.
Enjoy hassle-free business transactions!
Business bank accounts versus personal bank accounts
When you open a business bank account, you’re establishing a separate entity to manage your company’s finances. This helps you keep your personal and business transactions distinct, which is crucial for accounting, tax purposes, and legal protection.
With the best business bank accounts in Australia, you can also access specialized services like merchant controls, payroll processing, and business credit cards.
On the other hand, a personal bank account is designed for your individual financial needs. You use it to manage your day-to-day expenses, savings, and personal transactions. Unlike a business account, a personal account doesn’t come with business-related services.
By using the best bank for business account, you ensure that your business has a professional appearance, making it easier to track business expenses and income, which is essential for financial clarity and credibility.
Related read- Understanding the difference between personal bank account vs. business bank account
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 customized financial strategies.
Why do small businesses need tailored banking solutions?
Small businesses often operate on a limited budget and need efficient cash flow management. They require the best bank for business accounts to fulfill these specific needs, ensuring funds are accessible and transactions are cost-effective.
Traditional bank accounts may not always meet the flexible requirements of small businesses. They often impose higher fees, limit free transactions, and lack integrated digital solutions, which are crucial for modern business operations.
Key features small businesses should look for in a business account
When choosing the best small business bank account for your business, consider those that rank among the best business bank accounts in Australia. Prioritize accounts with low monthly fees to manage costs efficiently.
Look for options that offer you free transactions both locally and internationally, reducing your transactional expenses significantly. Additionally, consider a multi-currency account that allows you to hold and transact in multiple currencies, which can further minimize your transactional expenses.
Ensure the account provides you with robust online and mobile banking functionalities, allowing you to access and manage your funds conveniently from anywhere.
Further, integrating your bank account with accounting software is crucial for seamless bookkeeping, accurate financial reporting, automating processes, and enhancing your financial management capabilities.
These features collectively simplify your operations, improve cash flow management, and support your business’s financial health.
By selecting the best bank for business account that meets these criteria, you can optimize your business’s day-to-day financial activities.
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, especially one from the best business bank accounts in Australia, 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.
Related read: Opening a business account in Australia from overseas
Say no to multiple bank accounts!
What are the key features to look out for in business bank accounts?
1. Multi-employee allowance
Businesses often require multiple individuals to access and manage the company's finances. A business bank account that allows for multiple employees to have varying levels of access can streamline financial operations.
The best business bank accounts in Australia often permit different permission levels, enabling designated employees to make transactions, view account details, or initiate payments, enhancing efficiency and control within the organization.
The account should let an admin and a few managers handle the responsibility of assigning roles to employees. These roles will determine the level of access and authority that an employee has for using the business account.
2. Corporate cards
Corporate cards associated with business accounts provide a structured way to manage employee spending. These cards offer features like predefined spending limits, expense categorization, and centralized oversight.
They streamline expense reporting and reimbursement processes, while also enabling businesses to monitor and control expenditures, enhancing accountability and financial tracking.
Issuing and giving corporate cards to each employee is a great way to replace petty cash and make employee spending more efficient.
It leads to better monitoring and control as compared to hard cash. Budgets can be tracked remotely and disbursing additional funds when an employee needs it becomes much easier.
3. Online portal
An intuitive and comprehensive online banking portal is crucial for efficient account management. It should offer a user-friendly interface with features like account balance tracking, transaction history, fund transfers, bill payments, and statement downloads.
A robust online portal simplifies daily financial tasks, allowing businesses to manage their accounts conveniently from anywhere at any time.
This should be a major factor to look out for as many companies today work remotely with employees spread across different parts of the world. So making sure that the finance team gets access and uses the business account wherever they are is very important.
4. Mobile support
Everyone spends more time on their mobile phones more than ever before. Using apps, communicating with colleagues, and performing various other business functions.
In today's dynamic business environment, mobile support for banking operations is indispensable. The best business bank accounts in Australia typically offer robust mobile banking features to meet these needs.
A mobile banking app that mirrors the functionalities of the online portal enables businesses to access accounts on the go. This includes functionalities such as instant transaction notifications, mobile check deposits, fund transfers, and approvals for pending transactions, providing flexibility and convenience to manage finances remotely.
It helps both the employees to manage available funds and also the managers to monitor how their team is spending budgets.
5. Accounting integrations
Accounting is an extremely important step for any business at the end of a financial period. However, this can be a tedious process if the right systems and processes are not followed.
To make things easier business accounts often have the ability to integrate their platforms with common and popular accounting software available in the market.
Integrations with accounting software, such as Xero, QuickBooks, or MYOB, enhance efficiency by automating financial data synchronization. This integration eliminates the need for manual entry of transactions, reducing errors and ensuring accurate financial records. It streamlines reconciliations, simplifies tax filings, and enables better financial analysis and decision-making.
How to choose the best business bank account in Australia
1. 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.
2. 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.
3. 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, especially when evaluating the best business bank accounts in Australia.
Account limitations are important to consider because they will determine how fluidly you will be able to use the account.
4. 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.
5. 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.
6. 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.
7. 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.
Choosing one of the best business bank accounts in Australia often means better access to responsive customer service.
8. 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.
How to manage your business bank account
Separate finances
Keep personal and business finances separate by using the best business bank accounts in Australia exclusively for business transactions to maintain clear records and simplify your tax preparation.
Track your transactions
Regularly monitor your account for any unauthorized transactions or errors. Use accounting software that syncs with your bank account for accurate record-keeping.
Budgeting and forecasting
Create a budget to manage cash flow effectively. Forecast future expenses and revenues within your business to plan accordingly.
Optimize cash flow
Ensure timely invoicing and follow up on your overdue payments. Negotiate favorable payment terms with your suppliers and vendors.
Maintain a reserve
Keep a buffer of funds in your savings account for emergencies or unexpected expenses.
Reconcile regularly
Regularly reconcile your bank statements with your business records to ensure accuracy.
Utilize online tools
Take advantage of online banking tools offered by the best bank for business account for efficient account management.
Set up alerts for low balances, large transactions, or upcoming bills.
Understand fees and terms
Be aware of the fees associated with your business bank account for small business and how to minimize them.
Understand the terms and conditions of your bank account to avoid unnecessary charges.
Why should businesses choose Volopay business accounts?
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.
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.
Fuel your business growth with Volopay
FAQ's
Opening a Volopay business bank account is easy. Once you select a plan and provide all the necessary documents, you can create an administrative account and start using it immediately.
• Corporate cards, both virtual and physical
• Direct accounting integration
• Invoice management
• Subscription management
• International money transfer
• Multi-currency digital wallet and many more
When you consider the best bank for business account, it should typically include enhanced security measures like multi-factor authentication, fraud detection systems, and transaction monitoring to protect your business funds.
Yes, you can have multiple business bank accounts to manage different aspects of your business finances, such as operations, payroll, and savings.
The best business bank accounts in Australia let you integrate your business bank account with accounting software, which involves setting up a connection that allows automated synchronization of financial transactions and data for seamless bookkeeping.
Online banking offers benefits such as 24/7 access to account information, convenient fund transfers, bill payments, and detailed transaction histories, enhancing your business’s financial management efficiency.
You can receive assistance by contacting your bank’s customer service, accessing online banking support resources, or consulting with a dedicated business banking advisor.
Yes, many banks offer business account options with minimal initial deposit requirements, making it accessible for startups and small businesses with limited funds.
Yes, the best small business bank account allows you to manage payroll efficiently by facilitating direct deposits to employees’ accounts and handling related transactions.
Business bank accounts provide options such as international wire transfers, foreign currency accounts, and global payment platforms to facilitate international transactions seamlessly.
Yes, some banks offer a specialized business bank account for small businesses tailored to startups, featuring lower fees, flexible transaction limits, and additional support services to meet startup needs.
To select the best bank account, consider factors like low fees, free transaction limits, robust online banking features, integration with accounting software, and personalized customer support tailored to small business needs.