Small Business Bank Accounts

just doing some homework on bank accounts for small businesses...

It took me all of 30 seconds to get terrified by the sheer number of accounts available and the massive variety of options and services they provide and it got me thinking about how many people go through a small business startup or create a company structure etc. and wonder just where to start!!

SO, where do we start kids?? what is it that you would look for if you were starting out (or have started and what DID you look for)...

If I am reading the market right, more and more people are using structures to purchase property and many of those will need an account to play with - hence this thread in an attempt to educate anyone out there wanting to play (and satisfy my own curiosity too given past mistakes :p)...
 
don't happen to own a BoQ branch do you?? :p:D

thanks for your feedback - I am finding this all very interesting at the moment and wonder why the options are so much different to personal accounts - I can't see the reason for it!
 
LOL I wish... No I don't own, run, or work for BofQ (Own a swag of shares though!!)

I/We have just been banking with BofQ (business wise) for close on 15 years now. Even when we moved from Bris to the Sunny Coast ,I specifically hunted down an owner operated branch to deal through.
 
I have a Commonwealth Bank Business Account. Its $10 per month fee but You get an overdraft of $500 which is intrest free (apart from the account fee that is). Find it handy if there are bills that pop up unexpectantly.

No don't work for them, have PPOR mortgage and other banking with them.

Although reconsidering how much I fork out to them per year, maybe I am working for them! :rolleyes:
 
If I am reading the market right, more and more people are using structures to purchase property and many of those will need an account to play with - hence this thread in an attempt to educate anyone out there wanting to play (and satisfy my own curiosity too given past mistakes :p)...

If you have a decent sized taxable income, buying under another structure other than your own name may not be that beneficial for tax deductions, depreciation and cashflow if you are just starting out.

Most people seem to do it to try and protect assets, which at some point should be considered, but we have never done it; we have LL and Pub Lib insurance as well as building and contents.

We run separate accounts for the businesses which all the daily takings from the respective businesses go into, and all the expenses are paid from them. I also have a business credit card for each business and pay it from the associated business account each month. The accounts are also an overdraft facility if required, but so far we have avoided using it.

These accounts are in the name of the Company, and are set up to accept any funds such as eftpos, and cheques which are usually made out to the businesses' trading names. For example; you would have the account as XYZ PTY LTD TRADING AS ABC SERVICES. Most cheques will be to ABC Services.

The business loans are separate as well, and the loan payments are set up as monthly direct debits from the business accounts straight into the loans.
 
Last edited:
Top