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How to change banks for your business banking

4-minute read

You’ve worked hard to build your business – but are your current banking arrangements holding you back? Switching banks may be simpler than you think, including moving your business finances from a personal account to a business bank account.

Key take-outs
  • Open your new bank account(s) – you may be able to do this online
  • Provide your customers with your new payment details
  • Transfer regular payments across to your new account
  • Close your old accounts

1. Choose the types of bank account that best match your needs

If you’re tempted to switch banks and open a personal account that’s also used for business, it’s worth considering the benefits of separating business banking from personal banking. The obvious one is how simpler tax time can be with your finances clearly separated.

 

You may wish to opt for a mix of business banking products and services – including a transaction account for everyday banking and a savings account for any surplus funds. When shopping around for a transaction account, compare fees and charges, note if a business debit card is included, and check if accounts can be managed side by side in online banking. 

 

With Westpac for example, many accounts can be opened and managed online for flexibility and convenience. They include:

 

 

You could also consider applying for a business credit card account to help keep track of your business expenses and separate them from personal purchases.

2. Provide customers with your new payment details

To get the cash flowing into your new bank account, make sure you notify your customers and any service providers of the change to your account details.

 

If you switch to an eligible Westpac account1 and register for online banking, you can use our Biz Invoice online invoicing tool. It incorporates a complimentary invoice template featuring all the details your customers need to pay you promptly – including your BPAY® number if you add that payment option2.

3. Transfer direct debits and other payments across

Exactly how you do this and how complex the process is will depend on the bank you’ve chosen to switch accounts to. If you’re changing banks to Westpac it’s relatively simple, and there are two main considerations:

 

  • Direct debits – Check back over at least a year’s worth of statements to identify all the debits (and credits) that need transferring to your new account. Then contact both the people you are paying, and the people paying you, to give them your new account details.

 

  • Regular payments (including staff wages) – If you’re banking online you should be able to export CSV files containing your Pay Anyone and BPAY details from your old account – ensuring they feature the correct information (see our ‘import payment details’ guide). Then in Westpac online banking, import the payment details into your new account following the same guide. Now you can continue to make payments with ease.

4. Close your old accounts

Once your direct debits and credits are in place with your new bank, and any cheques you still receive have been presented to your old provider, it’s time to close your old accounts.

Enjoy the flexibility and time-saving features of online banking

When choosing a bank to switch to, you’ll most likely be looking for one that understands the key needs of small businesses – such as the desire to spend less time on banking and other admin. That’s why we spend a lot of our own time developing innovative features in online banking that are designed to support time poor business owners. 

 

We’ve already mentioned online invoicing, which you can do while you’re out and about. Online banking also allows you to easily collate cash flow information, share data with your accountant or bookkeeper, and link your eligible accounts to compatible accounting software – all of which could save you time each quarter and at year end. 

 

The prospect of changing business banks may feel like too much hassle – but it’s really not that hard. And once you’ve made the effort to move to a bank that offers you time-saving integrated banking solutions, you’ll never look back.


Read more

4 reasons to separate business banking from personal

One of the most useful things you can do when starting a business, is to keep your business finances separate from your personal.

How to set up your business banking

New to business banking? Here are six things to consider when choosing banking products for your business.

6 reasons why you need a savings account for your business

We share the benefits of setting up a savings account for your business.

Things you should know

1. To be eligible for Biz Invoice you must hold a Business One Low or High Plan transaction account or a foreign currency account (other than in Chinese Yuan RMB) and be registered for Westpac online banking. Westpac’s products are subject to terms, conditions, fees and charges; and certain criteria may apply. Before making a decision, read the disclosure documents for your selected product or service, including the Product Disclosure Statement and T&Cs for Westpac business bank accounts, business savings accounts, Business term deposits, foreign currency accounts, business credit cards and online banking, by using the above links; and consider if the product is right for you.

 

2. BPAY registration is subject to eligibility and transaction fees apply to BPAY payments.

 

The information in this article is general in nature and does not take your objectives, financial situation or needs into account. Consider its appropriateness to these factors; and we recommend you seek independent professional advice about your specific circumstances before making any decisions.

 

BPAY® is a registered trademark of BPAY Pty Ltd ABN 69 079 137 518.