It pays to open a separate account for your business. When you run a business, keeping accurate financial records is essential. One of the easiest things you can do to simplify your life is to choose the right set-up for your accounts from the outset — especially if you have plans to grow your business in future. Depending on your business structure, you may be required to have a separate account to hold business funds. If your business has been set up as a partnership, company or a trust, you are legally obligated to have a separate account for tax purposes. Sole traders aren’t legally required by the ATO to have a separate account, but there are many reasons why keeping your personal finances distinct from business funds is a good idea. Read on to discover the top reasons for opening a business account, and how to choose the right small business account for your circumstances. 5 reasons why you should open a business account 1. Better visibility of the financial health of your business One of the biggest challenges for small businesses is the ability to manage cash flow. Accurate monitoring of spending is vital for cash planning, however managing this can become more difficult when business spending and personal spending are intertwined in the one account. As a sole trader, there’s no legal reason why you can’t use your personal bank account to receive and make payments for your business. Yet when it comes to reconciling your business transactions at the end of each month, you may find that trawling through your personal expenses is a tedious task. If you choose to store business and personal funds in one account, you will need to be extra careful in reconciling your financials. Getting it wrong could land your business in trouble, come tax time. By keeping your business transactions separate, sorting out your legitimate business expenses from your personal spending becomes far simpler. To streamline your bookkeeping even further, you can link your business account to your business accounting software and automate the process of inputting your expenses. The ATO requires you to maintain your business records for five years; having a dedicated business transaction account will make it much easier to manage in the event you are audited. 2. Separated funds ready for tax time Meeting your tax obligations is one of the less enjoyable, yet necessary, elements of running a business. Maintaining a separate business transaction account means that you can keep track of your business income, and better manage your obligations when tax time rolls around. A popular approach for ensuring that there are no surprises at the end of the financial year is to have three business accounts : one for everyday transactions, one for holding your GST and PAYG instalments, and one for storing profit. This way, you won’t be tempted to spend more money than you should, and you’ll have better control over your cash flow. With Zeller, you can open multiple Zeller Transaction Accounts – with different cards attached to each for simple, trackable expense management and you can open a Zeller Savings Account to earn interest on your profit. 3. Easier accounting When tax time rolls around, you’ll want to make sure you don’t miss any legitimate business deductions. Keeping your personal and business transactions separate will not only make this easier, but will also help to avoid mistakenly claiming a personal expense as a business expense. You’ll also likely minimise your accountant’s fee, as they won’t have to sift through your personal expenses in order to complete your tax return. Instead, you could ask them to spend time on meaningful tasks that will help to grow your business. The true value of an accountant is in helping you to identify longer-term savings and strategies to grow your business — not identifying which coffees were for a business meeting, and which were for brunch with friends. Haven’t got one? Read  How to Find an Accountant for Your Small Business . 4. Simpler and faster money management Most financial service businesses take the hassle out of making and receiving payments by offering 24-hour online access to accounts. However, by shopping around, you will be able to find smarter solutions that offer far more than round-the-clock access to your funds. Depending on which provider you choose, your business could also benefit from the ability to track things like: the total value of sales on any given day, or month business performance by location the amount of tax payable on your takings, at any point in time. Zeller Transaction Account offers real-time visibility of all of the above, and much more. Most businesses can sign up in under 5 minutes. Take the time to research the features and compare business bank accounts to discover which meet your needs — not only now, but as your business grows. 5. A more professional image If you want your business to be taken seriously, opening a business account is an important first step. Making and receiving payments into a business account helps to create a more professional, trustworthy perception. When you have a separate account for storing business funds, your business name will appear on any invoices and payment paperwork, rather than your personal name. This will help both suppliers and customers to become more familiar with your business' name. Choosing the best transaction account for small business Before opening a new business account, it’s important to take a moment to consider your needs. Your business' operating rhythm, as well as the time it takes to get set up, are two of the most important considerations. Thanks to decades of technological advancements, there are new alternatives to traditional big-4 banking which don’t require you to carve time out of your busy work day to visit a branch, and rely on outdated communications methods — such as fax. Aside from ease of setup, there are a number of other considerations. These include: transaction limits whether you require additional features, such as cheque books availability of merchant facilities, such as EFTPOS terminals fees, including account-keeping and transaction fees how quickly you need access to your funds. If you’re not sure which business account is right for you, consider seeking advice from your accountant or tax agent. They may be able to help you decide what will work best for your financial reporting requirements. The easiest way to set up a business transaction account Zeller has developed a fee-free option specifically for small and medium sized Australian businesses. Our all-in-one solution includes a free business transaction account , linked to your Zeller Terminal. There are no hidden fees, or lock-in contracts. Payments accepted via your Zeller EFTPOS machine are settled into your Zeller Transaction Account at the end of every day, and funds are available for spending via your Zeller Debit Card the next day — which means there’s no waiting for your money. You can pay staff, suppliers, and yourself immediately. However, if you prefer to store your funds elsewhere, your Zeller Terminal can be linked to any third party bank account. Funds will be transferred the very next business day. The Zeller system has been designed to streamline the entire payments side of your business, and provide visibility over your incomings and outgoings at a glance. Zeller Dashboard provides a real-time overview of the money flowing into your transaction account, earning interest in your savings account, and being spent via your business debit card, as well as how your current cash flow compares to previous periods. Still not sure which is the right option for your business? Read up on Best Business Bank Accounts in Australia .

Each account is a financial tool with an important role to play. Money management is a skill that can take time to master. However, no business owner can afford to let this one slip through the cracks. Keeping a close eye on your incomings and outgoings from the outset is critical to keeping doors open. One of the simplest and most effective techniques to effectively manage your money is to set up three separate accounts: operating account tax account profit account. Each account has its own purpose. By keeping your funds in separate accounts, you will always have enough money on hand to carry you through quieter periods, take care of your tax obligations, or spend in case of emergencies. When you sign up for Zeller, you get a free Zeller Transaction Account . Setting up multiple Zeller Transaction Accounts is simple, and can be done in seconds. What is a business bank account? A business bank account is a facility that protects a business’s capital while enabling it to spend its funds. You’ll use a business account to receive payments from customers, fulfill invoices, track business expenses, and generally keep your accountant happy. A business bank account is not a personal account. For tax and bookkeeping purposes, banks, accountants and payments providers strongly recommend that merchants separate personal from business funds in separate accounts. To open a business account, business owners used to need to gather their documentation together, visit a bank branch in person to meet with a representative, and then send various forms via fax, postal or electronic mail. Eventually, you’d receive a card and checkbook in the mail. Instead, you can sign up for a free Zeller Transaction Account in minutes. A  Zeller Terminal can be purchased from the online shop , with free express shipping and same-day dispatch. Funds accepted via Zeller Terminal will be available in your Zeller Transaction Account for spending, the very next day, or you can simply use Zeller as your primary financial services provider without taking payments through Zeller Terminal. When comparing business accounts, it’s important to spend time on working out what’s important to you and which features your business needs. Read our blog about opening your first business account. 3 important accounts to open There are three basic business accounts you should consider opening. Of course, there are more sophisticated ways of managing your funds; you could be pouring over your budget every day. However, for simple and straightforward money management, keep reading. Zeller merchants can set up multiple sub-accounts to tailor their funds management to fit their unique business set-up. Not only does this give you a better overview of your business's finances, it also gives you the ability to more easily manage your money — with quick and seamless transactions between your main and sub-accounts. Here are the three accounts every small business owner needs. 1. Operating account The first account you’ll need is your operating account. Your operating account is where you run the day-to-day operations of your business. It’s where you: receive your income pay your bill pay your wages and so much more. Basically, all your day-to-day cash inflows and outflows go through this account. Most businesses should have one of these accounts already. For most Zeller merchants, this will be your Zeller Transaction Account . Funds are collected from your Zeller Terminal , settled and cleared into your Zeller Transaction Account overnight — so they’re available for spending the very next day. It’s the fasted way to get access to your takings and speed up your cash flow. Sign up for Zeller and you could have your Business Transaction Account in less than five minutes. Once your account is set up, stop using cash and do all your transactions electronically. If you’re paying suppliers in cash, it’s easy to lose track of the payment. If you pay electronically, you can always find a record of the transaction — ensuring you don’t miss out on claiming GST (if you are registered for it), or other tax deductions. Bigger businesses may choose to use a traditional bank for their operating account, because they offer overdraft facilities (subject to approval). These banks likely charge a monthly fee for the service. 2. Tax account The second account that you’ll need is your tax account. Your tax account is where you start putting money aside for tax. By separating it from your operating account, you will be less likely to spend it. It's easy to accumulate funds in your account, forgetting that at some point down the line there's tax to pay. Entrepreneurs and business are legally obliged to pay a number of different taxes, such as sales tax, trade tax, income tax, and wage tax. When you first start trading, you’re not paying tax on your earnings. But the year after you lodge your first tax return in net profit, you get a tax bill for that year — plus all of a sudden you also have to pay PAYG installments. Depending on which type of tax you pay, you will be required to make specific quarterly or monthly payments in advance to tax authorities. These advance payments help your business to budget and plan ahead, by spreading the business’s tax burden over the entire year. If you set aside money in a sub-account on a regular basis, it can help to make sure that you have sufficient financial resources available to pay your taxes on time. Each week or each month, start to put money aside money that will cover your obligations such as: Good and Services Tax (GST) Pay As You Go Tax (PAYG) superannuation income tax, and so on. 3. Profit Account Finally, the third account you’ll need is a profit account. This is where you put money aside for the profits of your business. So, as your business makes a profit, simply put a portion of that money aside. Again, if you leave it in your operating account, it’s far easier to spend. But if you put it aside in your profit account, it will be available when you want to make any changes in the business. This could be things like: paying out dividends purchasing new tools or assets for your business reinvest in the growth of your business giving all your staff a bonus investing in additional COVID-safe measures. The beauty of starting to manage your money this way is that you’ll be able to start choosing where you spend your accumulating profits, rather than your takings being simply absorbed in the day-to-day operations. Set these three accounts up today and use them frequently — you’ll soon find that you’ll have the money that you’ll need to scale your business. Once your business grows, it’s a good idea to look for a high-interest business savings account. This will let you earn interest on extra funds that you don’t need right now; effectively, it’s another revenue stream as it allows you to make money on business assets. Introducing smarter business banking With Zeller, you can accept payments from customers, track spending and manage your business's finances online. It’s an all-in-one solution for merchants looking for the most straightforward way to start or grow their business — no hidden fees or lock-in contracts required. In Zeller Dashboard , you can see: details of every sale the number and value of sales your business has made at any point on time where business funds have been spent account totals and so much more. By putting valuable insights at your fingertips, we hope to enable Zeller merchants to be able to make important business decisions with ease. Sign up to the Zeller Business Blog for more business tips delivered straight to your inbox. Please note this article is for educational purposes only and does not constitute advice.

What is an ABN? An ABN (Australian Business Number) is an 11-digit number issued by the Australian Business Register that identifies your business to the government. It 's used for tax and other business purposes, and it can also be used by the general public to find your business on the ABN Lookup website. Who needs an ABN? Anyone who is running or starting a business or enterprise in Australia needs an ABN. If you’re not sure if your activity is regarded as a business, ask yourself the following questions: Will it involve commercial sales of products or services? Is the activity more than just a hobby? Ie. Do you intend to make a profit from it? Will you be repeating the activity? Will you keep records of the activity in a business-like way? If you answered ‘yes’ to the above questions, you will almost certainly require an ABN. An ABN is essential for various reasons. It allows businesses to register for GST if their annual turnover exceeds $75,000, enabling them to claim GST credits and comply with tax obligations. Having an ABN also ensures you can issue valid tax invoices, making it easier to manage transactions and maintain professionalism with clients. Additionally, an ABN is often required to work with other businesses, apply for government grants, or secure financial assistance. Other situations may also require creating ABN, such as acting as the trustee of a deceased estate, super fund or a Self-Managed Superannuation Fund (SMSF), operating a charity, or leasing an investment property. Why do you need an ABN? When running a business in Australia, there will be many instances where you will be required to provide an ABN. These may include (but are not limited to) the following: Applying for a business bank account: banks or financial services providers often request an ABN as part of the documentation needed to open a business bank account as it helps them verify the legitimacy of the business. Business tax deductions: to claim tax deductions on business-related expenses, the ATO generally requires that your business have an ABN. Similarly, businesses that want to claim fuel tax credits for fuel used in business activities need to have an ABN. Identifying your business: when invoicing or placing orders, many clients and suppliers may require your ABN to help them verify your business's legitimacy and ensure smooth and transparent dealings. To get an Australian domain name: to register for a web address that ends in “.au”, you must be able to prove eligibility in Australia and it’s recommended that you have an ABN to do so. Registration as a charity: charities and non-profit organisations seeking registration with the Australian Charities and Not-for-profits Commission (ACNC) generally require an ABN. Government contracts: businesses engaging in contracts with the Australian government or its agencies usually need an ABN. Claim GST credits: to claim money back on GST that you’ve been charged on business supplies and expenses, the ATO will require that you have an ABN. Employer obligations: if you have employees, you need an ABN to meet your employer obligations, such as withholding taxes from employee wages. When do you need to register for an ABN? You need to register for an ABN prior to incurring income or expenses relating to the business. When you fill out the application form, you will be asked for the date that you expect to start your business. This date, however, cannot be more than six months in the future when you apply. Prior to applying for an ABN number you will need to have undertaken some relevant ‘commencement activities’ to prove that you are serious about setting up your business. These activities could be as simple as setting up a social media account or website, or purchasing business cards and stationery, or they could be more substantial steps such as purchasing a business; leasing a premises; obtaining insurance, equipment or stock; or applying for finance. It’s not essential to have undertaken all these activities prior to applying for an ABN number, but a certain number will be necessary to prove the legitimacy of the business. One thing you do need to do before applying for an ABN however, is to decide on the right structure for your business, for example, a sole trader, partnership, or trust. Read our article on how to structure a new business here. What documents are required to apply for an ABN? To apply for an ABN you will require the following documents: A tax file number (TFN) and the TFNs of any associates – for example, partners, directors, and trustees The date your ABN is required (the date you expect to start any business activities) An entity legal name, which will appear on all official documents or legal papers Business contact details including an address, postal address, email address and phone number The business’ physical location(s) Depending on your circumstances, there may be additional documents that you need to provide: If you are using the services of a professional advisor, you will need to provide their Australian Financial Services licence number If you are using a registered agent for your tax or BAS preparation you will need to provide their registered agent number. If they are authorised to make changes or update information on behalf of the entity, you will also need to provide their contact details If you have previously held an ABN, Australian company number (ACN) or Australian registered body number (ARBN) you will need to provide these. What’s the difference between an ABN and an ACN? Unlike an ABN, which is legally required for all Australian businesses, an Australian Company Number (ACN) is only required if your business is registered as a company. If this is the case (read our article on structuring a business here), then you'll need both an ABN and an ACN. This unique nine-digit number is issued by ASIC and must be displayed on all company documents. Click here to learn more about registering a company . How much does an ABN cost? Registering for an ABN through the Australian Government’s Business Registration Service is completely free. Of course if you choose to use a tax practitioner or another service then that may involve fees, but the process is actually very straightforward, so it's worth having a look yourself before asking for help. How do you apply for an ABN? There are two ways to register for an ABN: Via the online application form on the Australian Business Register website Via the online application form on the Business Registration Service’s (BRS) website . The advantage to applying through the BRS is that you can register a business name at the same time as your ABN application. If you don’t, you’ll need to go back to the Business Registration Service to register your business name. How long does it take to receive an ABN? If you have provided all the relevant information, and your application is successful, you will receive your 11-digit ABN immediately. If, after applying, you receive a reference number it means that the ABR may require additional details or information. Applications are usually received within 20 business days and they will contact you if further information is needed. How do you update your ABN details? To update your ABN details, including your business addresses, contact details, and business activities, simply log in to the Australian Business Register (ABR) online services. Once logged in, select 'Update ABN record' and follow the prompts. Changes made online take effect immediately. If online access isn't available, you can update your details by contacting the ABR directly, consulting your registered tax professional, or completing and mailing the appropriate form. It's important to update your ABN details within 28 days of any changes to your business. What if I forget to update my ABN details? Everyone makes mistakes every now and again, but it really is best to do your best to keep your ABN details up to date. If you forget, the Australian Taxation Office (ATO) could impose a fine ranging from $220 to $4,400, depending on the severity and frequency of the oversight. Also, outdated ABN information can hinder your access to government assistance, especially during emergencies. Government agencies rely on current ABN details, so inaccurate information may result in missed opportunities for support. Starting a business? Zeller has your finances covered. We know you’ve got a lot on your to-do list, but thanks to Zeller you can cross off ‘open a business transaction account’ in as little as six minutes. Plus, with a suite of tools to help you accept payments, manage your expenses and track your cash flow, Zeller will ensure you start your business on solid financial footing. Open a free Zeller Account today and you’ll gain access to: Zeller Transaction Account : a free account to store your funds. Zeller EFTPOS Terminal : the smart way to accept in-person payments. Zeller Debit Card : an expense card that helps you stay on top of business spending. Zeller Invoices : a platform for sending unlimited invoices and getting paid online. Tap to Pay with Zeller App : the easiest way to take payments with no hardware required. Zeller Virtual Terminal : a simple solution for taking payments from a web browser. Zeller App : one convenient app for managing all your business finances from anywhere. And there’s more! We’re constantly updating our tools and features, so stay up to date by signing up to our newsletter . You'll get all the latest Zeller news and updates straight to your inbox.