If you’re new to business in Australia or looking to change your financial institution, setting up a business account with Prospa can help you get your business finances sorted out. Applying can only take a few minutes. Our accounts operate primarily online, so you can benefit from a no-fee business account to help remove costs normally associated with general banking.
We’ve spent many years working with small businesses, and we understand the unique challenges they need to manage. As such, we provide ideal tailored business account solutions that can help you keep your finances organised.
How are business accounts different from personal accounts?
Business accounts are used for any purchases and expenses related to running your business, and personal accounts are for your personal expenses and wage payments. Many people new to business could think that having separate accounts is complicated. However, when tax times come around, the benefits of having separate accounts help make sorting out your finances easier. Having two accounts (personal and business) makes separating income and expenses straightforward. If you engage the services of tax agents, you won’t be paying them extra to sort out your finances at the end of the year.
Why setting up a business account can help your business financials.
Maintaining cash flow
Keeping separate accounts for your personal life and your business will clarify where you stand from a financial point. Keeping a close watch on your business account, you can see how you are travelling and if you need to make any financial adjustments for the month. When your accounts are mixed, it is easy to use funds set aside for your personal life for business expenses (and vice versa).
Having a separate business account will also mean that you need to decide on purchases at the point of sale instead of remembering at a later date. In addition to your purchases, all charges associated with a business account can be tax-deductible (ask your accountant how to make the most this at tax time).
Increase your tax deductions
When you have separate business accounts, it makes finding all your deductions very easy. You won’t need to scour through your accounts and try to remember which purchase was a part of your business expenses. When you only have a personal account, all your transactions are mixed, and it can be very easy to miss out on several deductions.
Maintaining a professional appearance
Setting up a business account will give your business a more professional appearance. If you use a corporate business account, it’s likely that anyone making payments to your accounts will see you as a more trustworthy and professional organisation and probably be more willing to trade and do business with you.
Help with obtaining loans and other financial assistance
When you have a dedicated business account with Prospa, you’ll find it is easier to obtain additional financial assistance. Having an existing relationship with a small business lender like Prospa can make the application process for funding quicker and more manageable. At Prospa, we offer small business loans that can help manage your cash flow or set you up for your next opportunity.
When is it a good idea to open a business account?
Generally, setting up a business account as soon as you begin your business is a good start. You should start by registering a name, registering for an ABN and registering for GST if required, and then having all your company bank account requirements organised.
If you’re in the early stages of your business, opening a no-fee business account with a company like Prospa can help to provide you with time-saving things like online access. An online business account can help you with automatic payments and pay any bills or invoices. A business account can grow with your business, and you can often add services as your company gets larger and you need to handle more money and transactions.
If you’ve been operating your business for a while and have not had a separate business account, you’re likely aware of some of the struggles this entails. Why not speak to Prospa about setting up a business account with us so you can untangle your business operation from your personal accounts. It’s not to late to get started and applications can be completed in just a few minutes.
How to set up a business account?
One of the benefits of an online transaction account is that application and set up can be done very quickly. A business account can only be opened by the company’s directors or owners, and you’ll need your ABN and driver’s licence to get started. The application process is completely online and any required documents can simply be uploaded. Once this is completed, we’ll aim to have your account open as soon as possible once you’ve passed all eligibility criteria and assessments.
With the Prospa business account, there are no monthly fees or a minimum account balance. The Prospa online business account offers convenience to all small business owners as you’ll have easy access to your account 24/7. We’ll also provide you with the Prospa card, which can be used at any location that accepts Visa, with Apple Pay and Google Pay coming in the near future.
You can open an account today and have it ready for use in only a few minutes. If you need any additional information, you can call our team at 1300 671 307 at a time convenient for you and discuss your options for working with a small business account that delivers what you need!