Should I Open a Separate Business Bank Account for my Business?
Where your business is a separate legal entity (for example, a Pty Ltd) or operating under a “trading as” name, it is highly recommended that you open a separate bank account for the business.
If you are a sole trader, you don’t have to open a separate business bank account.
However, separating your personal and business bank accounts is a wise decision, even if you aren’t required to do so.
Mixing personal and business bank transactions can cause reporting and accounting confusion and could result in the incorrect treatment of transactions for tax return and GST purposes. You may also inadvertently use business cash for personal expenses.
Opening a business bank account is not a difficult process and most banks are very well geared to helping you with this process.
At Expert Bookkeeping and Accounting Services, as experienced bookkeepers and accountants, we can assist you with the setting up of all bank accounts that your business may need. However, it is critical to remember that we cannot do this for you and we cannot recommend which bank you should use. These are decisions you need to make yourself.