What to Look for When Choosing a Free Business Account

10 min. read15.03.2021

Learn how Zeller Transaction Account compares to traditional business banks in Australia.

Keeping accurate financial records is essential to running a business, and it all starts with a business bank account. However, navigating the muddy waters of bank jargon and fee structures is no easy task. To help make the decision easier for small business owners, we’ve compared the best business banking accounts in Australia, and weighed them up against Zeller, a smarter and more affordable non-bank alternative to your traditional business bank.

Read on to discover why you need to open a business bank account, what factors you need to consider, and why an alternative financial services solution like Zeller could be the better choice for your small business.

Bank accounts for Australian small businesses

Every bank and financial services provider has its own approach to offering business transaction accounts and structuring the fees that come with them.

Some have a wide range of add-on services that can be very valuable to the right business, but come at an additional cost. Others require fees simply for continued access and use, without any added benefits. Identifying what’s relevant and useful to your particular business will not only keep costs low, but ensure you are getting the maximum value from the service.

Business bank account comparison table

To help you find your way through the weeds, we’ve aggregated the fee structures and features of business bank accounts from six major Australian banks — Westpac, CommBank, NAB, ANZ, Suncorp and Bendigo Bank — and compared them to the Zeller Transaction Account in one simple comparison table. Simply select the two banks you would like to compare from the drop-down menu, and scroll down to compare all the different criteria you should consider when choosing a business bank account.

What is a business bank account?

A business bank account is a specialised bank account designed specifically for the needs of businesses. It is used to manage the financial transactions of a company, such as paying bills, receiving payments from customers, and managing payroll.

Business bank accounts can be opened at most banks and financial institutions, and are typically offered in a variety of account types to suit the different needs of both large and small businesses.

Why do you need a business bank account?

Whether you’re planning a medium-sized enterprise or starting out as a sole trader, any business venture requires separating your personal and business finances.

For businesses structured as a partnership, company or a trust, having a business bank account is a legal requirement for tax purposes;
For sole traders, a business bank account is not required under Australian law, but is strongly recommended.

Separating business from pleasure in your bank accounts makes reconciliation for bookkeeping and tax considerably easier, professional and legitimate. Additional benefits include:

Clear cash flow

Centralising business revenue and expenses with one institution gives you a clear view of your cash flow, to ensue the financial health of your business.

Loan documentation

Lenders often require documentation that proves the business is operational, and a business bank account statement can help provide that proof.

Brand perception

Your business name will appear on invoices and payment paperwork, helping to create a more professional, trustworthy perception with your customers.

Is there an alternative to a traditional bank?

Yes, business owners nowadays can access a wide range of non-bank financial services solutions, as an alternative to their traditional business bank.

Additionally, you should also re-consider the value you can get from an alternative to the traditional business bank — rather than just an account to store money in, many new providers offer an array of powerful business banking features. When comparing business banks, look for solutions that include features such as instant sub-account creation, the ability to issue virtual and physical business debit cards in a click, real-time fund transfers, a dedicated business banking mobile app, transaction tagging and reporting, integrations with your accounting software, customer-level tagging and relationship management reports, and more.

If you’re considering a non-bank alternative to your traditional provider, sign up for a free Zeller Transaction Account to review all of the features and functionality included that you may never get from a regular business bank.

Zeller's financial solution

Zeller is a popular Australian alternative to the traditional, outdated business bank, that offers business owners a complete financial services solution with free Transaction Accounts, Business Debit Cards, an EFTPOS Machine, invoicing software, and more, all available from one convenient and free account.

If you require a way to store, manage and spend your business funds, and accept electronic payments, but have no need to visit a bank branch, a non-bank such as Zeller is a very compelling choice. With Zeller:

Whether you’re paid by card or funds transfer, access to your funds is generally quicker than traditional banks, which often use legacy technology and complex internal processes.
You can create multiple accounts and debit cards at the click of a button. Fund transfers are made in real-time.
A powerful web portal and leading edge mobile app allow you to send and receive funds transfers, and work with your transaction accounts, debit cards, and real-time card sales.
Contacts can be assigned to transactions, and you can add notes and images to transactions, to simplify reconciliation.
Everything is consolidated in one, easy-to-use platform: from your EFTPOS payments to transfers, settlements and expenses. You can even write, send and track invoices in your Zeller account.
Your Transaction Account can be synced with Xero’s Bank Feeds Integration, for seamless bookkeeping reconciliation

A fee-free small business account with no paperwork, no need to visit a branch, and the ability to open sub-accounts and issue debit cards with a click: Zeller is the smarter non-bank alternative to your traditional business bank.

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How do you open a business bank account?

With the major banks, opening a business bank account will depend largely on what kind of business you are running and whether or not you are already a business customer. Depending on what camp you sit in will determine whether you can open an account online or whether you’ll need to go into a branch.

As Zeller is an entirely online financial services provider, all customers — no matter the business structure — can open an account online in a matter of minutes.

Whichever institution you choose, opening an account will require you to provide:

A business name
A primary business address
An Australian Business Number (if applicable)
An industry type
Certified identification documents (such as passport or driver’s licence) for all owners or partners
Additional documents may be required if your business operates under a particular structure such as a trust, cooperative or association

To see specific requirements of each bank, check the comparison table and scroll down to “How to Apply” or visit the bank’s website. Or, if you're looking for a smarter, faster non-bank alternative, follow the prompts to sign up to Zeller for free here.

Five things to consider when finding the best business bank account for your small business.

1. Fees, Transaction Limits & Staff-Assisted Transactions

Depending on the option you choose, you could be spending as little as $0 or as much as $264 a year on business bank account fees.

Beyond the account fee, be sure you understand all the fees associated with using your account – some of which can be hidden in the fine print. Certain accounts from ANZ and Bendigo Bank, for example, only offer a limited number of free electronic transactions per month, while staff-assisted transactions are capped at 20 to 30 per month for nearly all the major banks’ no fee business bank accounts.

If you’re not careful, seemingly inexpensive plans can actually end up costing you more to use. To help you decide what you need, let’s break down some terminology:

Electronic transactions are any type of transaction that is conducted with your computer, smartphone or other digital device. This could include transferring money between accounts, paying bills, shopping online, or using a debit card or mobile payment app, such as Apple Pay.
Staff-assisted transactions are those that require you to go into a bank branch and speak with a teller; to deposit cash or collect change, for example.

If you’re going to be making several electronic transactions each day, it’s worth doing the maths: two transactions per day at $0.40 per transaction (as is the case with Bendigo Bank’s no fee business bank account) will end up costing you $24 a month.

Staff-assisted transactions can be as much as $3 each, when not included in your plan. If you need to collect change once a week, at a rate of $3 per transaction you’ll be paying $12 a month — more than the monthly fee for most accounts that offer this service for free.

business bank account reporting tool on laptop by Zeller

2. Debit Cards

All the best business accounts will include a debit card as part of their offer. This is the bare minimum requirement when opening a business account, and all of the options we compare in the table above do indeed provide one. Each will have slightly different features associated with it.

While all banks will have maximum daily transaction and cash withdrawal limits for security purposes, most will allow you to increase these limits if you need to. If you’re likely to be withdrawing cash frequently from ATMs or making significant purchases, it’s important to note how much you can increase these limits by.

Similarly, if you’re planning on using your business account to manage staff expenses, check the requirements for ordering additional debit cards.

The big four banks — Westpac, Commbank, NAB and ANZ — all require that each additional cardholder is an account signatory. This is a potential deal breaker for any small business owner who just wants to give their staff members a card to purchase everyday items, without also giving them the authority to access and manage the whole bank account.

Flexibility provided by Zeller Debit Card

This is where Zeller has a much more flexible alternative to the traditional business banks. Within your Zeller Account, you can create as many Debit Cards as you like — one for each staff member, for example, which can each draw from a different Zeller Transaction Account.

With Zeller’s no fee small business account, Debit Cards are free to create and can be virtual and instant, with the option of plastic cards.

3. Mobile Business Banking Apps

How you use and interact with your business bank account will either be a seamless experience or an endless source of frustration. Rather than finding out the hard way, do a little research upfront to make sure the banking app and online platform are going to work for you. A great place to start is by looking at the reviews on the Apple App Store, at the time of writing*, the Zeller App on the App Store was rated the highest with 4.8 stars, while the CommBank Small Business app was the lowest with 2.1 stars.

Most banks use the same app for both business and personal banking. Zeller, on the other hand, is a financial services provider solely for business, therefore the app is entirely tailored to what small business owners need.

From the Zeller App you can create and manage accounts, issue new cards, build and review payment reports and transaction insights, and manage expenses — all with real-time business data.

*Customer ratings on the Apple App Store as of 17 May 2023.

business bank account app by Zeller

4. Reporting & Analytics Tools

One of the most important ways of measuring the financial health of your business is to track your cash flow. When considering what business bank account to choose for your operation, you need to look into what tools and reporting the bank will offer you, because ultimately, these will inform important business decisions, such as:

Committing to capital purchases such as a new coffee machine or vehicle
When and at what level to roster staff on, and when to take a break
If recent marketing has brought in more sales

For owner-operators who are short on time, being able to gain these financial insights at a glance is essential. In this domain, the Zeller Business Transaction Account is second to none. From the dashboard on desktop or from the Zeller App, business owners can:

Visualise their cash flow with real-time reports in a user-friendly interface
Break down incoming and outgoing transfers
Categorise and filter transactions by type, contact, date, amount and spend category
Assign contacts and attach receipts or notes to transactions to know exactly where the money’s going and why.

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5. Customer Support & Service

A final and very important consideration when choosing a business bank account is the customer experience. Whether this is over the phone, on a mobile app, or in person at a physical branch, it’s important to choose a provider that is suited to your needs.

If you’re leaning towards a bank and need the option of speaking to someone face-to-face, then make sure to look up where your closest branches are before signing up. If you prefer to manage all your finances online, make sure you like the user experience provided on the website or mobile app of your chosen provider.

For day-to-day support, have a look at how robust their customer service platforms are including contact channels, customer assistance directories, and support articles — some will be much more comprehensive and easier to navigate than others.

Where Zeller offers a considerable advantage over traditional business banking counterparts is its phone, SMS or email customer support (available 9AM to 1AM AET, 7 days a week) as well as 24 / 7 debit cardholder support.

So, what’s the best business bank account?

There’s no one-size-fits-all solution: every business is structured differently and every owner will prioritise different features. However, if you’re embracing the inevitable shift towards cashless transactions, Zeller’s financial ecosystem is very hard to beat on cost and functionality.

Zeller is a non-bank alternative that has been designed for businesses, therefore every feature is tailored to the needs of business owners.

To come to a final decision, weigh up all the considerations outlined in this article, consult the comparison table above, do your own research, contact the banks if you require even more detail, and sign up for your free Zeller Account today to give it a try.

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Zeller Business Blog

Zeller Transaction Account: manage your business’s finances

Gone are the days when managing your money was synonymous with paperwork, bank tellers, and hidden fees. Enter the new age of business finance with Zeller. In the same way that video streaming platforms replaced movie rental shops, online-only financial service solutions are rapidly becoming the preferred alternative to traditional, outdated business banks. While the idea of perusing aisles of dusty DVDs may fill us with a warm nostalgia, no one is mourning the loss of queuing at the bank. Zeller is one such digital financial institution tailored to Australian businesses. From securely storing and saving your funds to paying employees, invoices and bills, Zeller’s free Transaction Account has everything you’ve come to expect from a traditional bank account, but with less fuss, and more features designed with the unique needs of business owners in mind. If you’re tired of inefficient processes, paperwork, and complex fee schedules, here’s ten reasons why you should make the switch to a Zeller Transaction Account today. 1. It takes less than 6 minutes to sign up. If you’re 18 years or older, have an active Australian Business Number (ABN) or are a Sole Trader, you’ll be able to sign up in a matter of minutes. The process to sign up for a Zeller Account is simple, and done entirely online. All you’ll need is a current passport or Australian drivers’ licence. Once your identity has been verified, you’ll be able to create your own Zeller Transaction Account – with a BSB and account number – as well as your Zeller Dashboard, where you can access and manage all other Zeller services. For more complex business types such as a trust or company, our team may reach out to you to request some additional information. 2. It’s free. Once your Transaction Account is up and running, there are no monthly fees, and no lock-in contracts. You will only ever pay a fee if you choose to start accepting payments via Zeller EFTPOS Terminal (1.4% per in-person payment, or 1.7% for over-the-phone payments) and/or Zeller Invoices (1.7% + $0.25 per transaction). What’s the catch? There isn’t one. Read more about our transparent pricing here . 3. Create unlimited debit cards and sub-accounts. Zeller Transaction Account is designed to be configured to your unique business needs. You can create as many sub-accounts and Zeller Debit Cards as you like, at no additional cost. You may choose to open one sub-account for storing operating funds, one for tax savings, and one for profits for example. Or, if your team has to regularly pay for expenses, you might create sub-accounts for each member of staff, and then give them each a Zeller Debit Card. Rather than dealing with petty cash or expense claims, Zeller Debit Cards – which can be physical or virtual – take the hassle out of team expenses, while also giving you complete control. Unlike with traditional banks, Zeller cardholders are not required to be signatories on the account, which means only you, as the business owner, will have admin access to your Zeller Transaction Account. 4. See your cash position at a glance with visual charts and quick-access insights. From your Zeller Dashboard, you can access a real-time, single-page overview of your business financial position. A simple chart tracks your end-of-day balance over the last 90 days, allowing you to quickly identify spending patterns and make informed business decisions such as rostering, inventory orders or the best time to push marketing. On the same page, you will find a preview of your most recent transactions, as well as the cash position of all your sub-accounts and debit cards. 5. Pay bills with BPAY. BPAY is an easy and secure way to manage and pay bills online. From your Zeller Transaction Account, you can assign contacts to bills paid with BPAY to track expenses over time, as well as reconcile bill payments with BPAY through Zeller and Xero Bank Feeds. Unlike many banks and other financial institutions, BPAY with Zeller is entirely free to use. Plus you benefit from the combined security of BPAY and Zeller to give you extra peace of mind. 6. Attach invoices, receipts and notes to transactions. Get the full picture when it comes time to do your taxes, reconcile your expenses, or find proof of purchase, thanks to Zeller’s handy feature that lets you attach invoices, receipts or notes to your transactions. Rather than storing payment records or important information relating to transactions in a folder somewhere, store them right alongside the transactions themselves where they can be accessed from anywhere you have an internet connection. It will keep you organised, reduce paper (better for the environment!), and save you time in the long run. 7. Assign contacts and customers to each transaction. Zeller Contact Directory lets you store business and personal details, and assign them to relevant transactions. Whether you’re transferring money, taking a payment, searching for a previous transaction or comparing how much you spend at various businesses, Zeller makes it easy to identify payers or payees. Simply select a contact to view your shared transaction history or direct a transfer. 8. Send invoices and receive online payments. Every Transaction Account holder has access to Zeller’s all-in-one invoicing solution . From Zeller Dashboard, you can choose to create or import a library of items, build customised invoices and send them immediately or at a later scheduled date via email or SMS. Your customers can then pay you securely via an online link using their debit or credit card – no need for bank details means you get paid faster. You can then track and report the payment status of your invoices or send automated reminders to make sure nothing goes unpaid. 9. Streamline your accounting with Xero. Whether you use Xero for invoicing, bookkeeping or both, Zeller’s integration with Xero keeps things simple. By connecting Zeller online payments to your Xero invoices, customers can pay in a click and you can receive your funds directly into your Zeller Transaction Account. Plus, you can sync your Zeller transaction and settlement data with Xero Bank Feeds making end-of-month reconciliation a breeze. 10. Access your business finances on the go with Zeller App. Access your business finances from a tablet or smartphone with Zeller’s top-rated app . From tracking sales and expenses to creating new accounts, issuing cards, and configuring account settings, Zeller’s full suite of tools and features is available from the palm of your hand. We understand that business owners are time-poor, which is exactly why we’ve carefully designed this app to allow you to manage all your finances on the go, simply and securely. Ready to try Zeller for yourself? Sign up free If you’re an existing Zeller customer, simply log into your Zeller Account to create a new, free Transaction Account today. If you are not yet using Zeller, sign up for free here and start growing your business with Zeller’s suite of financial tools.

04.05.2021

How To Open Your First Business Transaction Account

What is necessary to open a business account? To open a business transaction account , you’ll need to provide: certified copies of identification documents, such as a passport or driver’s licence details of your business proof your business exists, such as a website and social media profiles Additional documents may be required if your business operates under a particular structure. For example, if your business operates under a trust, documents identifying the beneficiaries of that trust may be required for account verification. Further, traditional banks often require you to visit a bank branch in person in order to set up a business account. Wondering how to set up a business account, or how to open a transaction account online? The easiest way is to sign up for Zeller. In just 5 minutes, most businesses can be up and running with a free Zeller Transaction Account . Once set up, you can create as many accounts as you like to separate business funds — and link each to a Zeller Debit Card for simple, trackable spending. Let’s dive deeper into the details, so that you can make an informed decision about the best account for your business. What is a business account? A business account is an account traditionally offered by incumbent banks. In recent years, digital banks and neobanks have introduced similar offerings. Business bank accounts offer a single place to accept deposits and make payments, while keeping your business and personal finances separate. A transaction account enables you to do the same. A business account itself is pretty straightforward. Different banks and alternative providers offer additional features and services, on top of the base offering, which usually come with extra costs. Fees including, but not limited to, monthly account fees and minimum deposit fees are important to keep in mind. Focus on finding an account that aligns with your specific needs in order to keep fees to a minimum. Why open a business account? There are a multitude of benefits that come with opening a separate account for business purposes. For one, setting up a business account can make bookkeeping less of a headache — especially at tax time. A business account also helps you stay in line with the relevant government rules and regulations. The Australian Taxation Office stipulates that ventures operating as a company, partnership or trust must have a business account for tax compliance. And, while sole traders don’t face the same requirement, a business account provides the same benefit of keeping personal and professional transactions separate. Once your business account is set up, you’ll have a clear path to sharing important information with your accountant or handling your tax obligations yourself. Business accounts also give you a clear view of your business finances. All of the relevant transactions are tracked in one place, making it straightforward to look at recent activity and identify any potential areas for concern. Opening a business account also helps your company appear more mature and professional. While customers won’t notice the difference at the point of sale, they will likely see it when reviewing their monthly statement. The legitimacy a business account offers can also encourage suppliers and vendors to form a relationship with you. When you hear the term “business bank account”, it’s usually in reference to a transaction account. This type of account is used to make and receive business payments on a daily basis. A business savings account is another type of business bank account, very similar to a personal savings account. These types of accounts serve as a place to deposit and hold money for longer periods of time. Who can open a business account? Banks and other providers of financial services have a number of rules and security measures in place to make sure anyone attempting to open a business account is doing so in good faith — and is eligible to receive one in the first place. The requirements for opening a business account are strictly defined but straightforward, at least as far as the highly regulated world of banking is concerned. You may be asked to provide a variety of documents and information to prove your business is legitimate and eligible for an account. This mostly involves things you likely have on hand right now or can quickly access, such as your company’s full name, Australian Business Number, and tax file number. The physical and registered address of a business are also commonly requested. You will also need to identify key parties, including both company directors and any employees who will access the account. You, your partners, and potentially your staff may need to produce passports or a certified copy of drivers licences. When should I open a business account? Opening a business bank account makes everything from tax time to accepting customer payments easier. As Australians increasingly move to using debit and credit cards for everyday purchases, this will only become more important. A business account is foundational for smoothly processing card and online payments and keeping track of your business’s finances. You should be looking to set up a business account as soon as you’ve set your business in motion. You’ll need to set aside some time to gather the needed documents and information, but accounts that offer online registration will save you precious hours (and, in some cases, days). You’ll also need to give some thought to the impact any fees will have on your budget. To save on fees, look for providers who are upfront about the costs of using their platform. How can I open a business account? Understanding how to open a business transaction account and set it up correctly is crucial. It streamlines day-to-day management of your finances and makes your business appear more professional. And, in many cases, a business account isn’t just a smart idea — it’s a requirement. You have plenty of choices when it comes to choosing a business account. There are traditional banks, of course, but their offerings don’t always align with the needs of modern business owners. High fees, excessive paperwork, and long application processes can sap your energy, turning what should be a basic task into a drawn-out process. These are just some of the reasons why Australian Businesses aren’t satisfied with the Big 4 banks — and why we built Zeller. We’re reimagining business banking for Australian merchants. With Zeller, you can sign up in minutes and begin taking payment. Discover how our fee-free Zeller Transaction Account , used in conjunction with Zeller Terminal and Zeller Debit Card , can help accelerate your cash flow and grow your business.

15.03.2021

Send invoices from your smartphone.