Once the business is registered, you're ready to get banking.
Everyday Business Banking Account
It all starts with an everyday business transaction account. It's important to keep this separate from any personal accounts for ease of accounting and reporting.
And since an everyday transaction account is the hub of all your ingoings and outgoings, it needs to be simple and reliable. This will help with record keeping for tax and BAS (Business Activity Statement) time.
Signatories and security
If you're in business with others, you'll need to decide how many signatories might be needed. Everyone, or just some? And will there be others - like an accountant or payroll employee - who you want to have access to accounts too?
Security is also a major consideration. To enhance this, Westpac business customers have access to an extra layer of security via a token (a small keyring-sized device that displays a digital passcode) that identifies authorised signatories.
Known as second-factor authentication, tokens allow you to complete transactions above your pre-determined daily payment limit, as well as other account functions.
Business Online Banking
Bank when you want, wherever you want; at home or on the go. Business Online Banking provides 24/7 access to accounts.
You can check balances, transfer funds and reconcile payments; even export or integrate banking data with your financial software, thus saving time and money.
Business savings accounts
There will be times when you either have surplus funds or want to stash money away for a future payment (like a quarterly BAS submission). It's a good idea to open up a separate savings account, which will earn extra interest until you're ready to use the funds.
Best of all, you can even open several to keep your funds segregated for different purposes since savings accounts are generally free to set up and maintain.
Savings accounts typically offer variable interest rates. You can also investigate term deposits, which offer fixed interest rates for locking away funds for a specified period, thus providing certainty of return.
You'll need to get paid by customers in ways that are not only convenient for them, but convenient for you to manage as well. Things to consider include any applicable fees as well as the process for 'settling' your account (moving your day's takings into your everyday transaction account).
After all, the sooner you have access to customer payments, the healthier your cash flow will be.
Business credit cards can be extremely useful for 3 main reasons:
- They are a convenient and easy way to manage and reconcile business purchases ;
- They extend your working capital cycle (cash flow) by the interest free period
(If you're short on funds, this can really help); and
- Business expenses paid using a credit card can earn rewards points, which can be spent on any number of things, like employee incentives, gift vouchers, travel and merchandise.
Things you should know
General advice: This information is general only and does not constitute any recommendation or advice. It is current at the time of publication, and is subject to change. It has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on the information, consider its appropriateness, having regard to these matters. Consider obtaining personalised advice from a professional financial adviser and your accountant before making any financial decisions in relation to the matters discussed in this document, including when considering the finance options for your business.