Choosing the right bank account for your business
There are many advantages associated with having a specialised business banking account. It allows you to keep track of your cash flow accurately, easily produce proof of expenses in the event of an audit and can be helpful when making business decisions.
Unfortunately, it is hard to avoid fees on small business banking accounts. It is often worth taking a close look at the business banking products on offer and considering whether it might be in your best interests to pay slightly higher fees to ensure that you have all of the functionality that you require.
Generally speaking there is a trade-off between a high interest rate and low fees, you cannot have both. High interest accounts tend to have a cap on the number of transactions that can be made, with additional fees being charged if you need to make additional transactions.
If you are diligent enough to keep separate business banking accounts then the best strategy can be to have two accounts.
One can be used for day to day transactions and will attract little interest. The other can be a high interest account in which you put aside larger sums of money, for example, your PAYG or super contributions.
Take the time to examine the fee schedule associated with the account you are considering. Many banks do have hidden fees, such as a charge for a teller operation or annual business credit card fees.