Do you need a separate business bank account?

Been wondering if you should have a separate business bank account?

From the ATO website:

"If you're operating as a partnership, company or a trust, you must have a separate bank account for tax purposes.

If you are operating as a sole trader, you don't have to open a business bank account, but it's a great idea to do so."

I'd go one further and suggest that you shouldn't just have one business bank account, you should have at least 2, maybe even 3 or more, depending on the size of your business and if you employ staff.

This is because you can have one for your Tax, Super, BAS Liabilities and also don't forget your business Savings!

Keeping your business separate from your personal accounts is a good idea because:

• You won't miss any deductions you could have claimed (think - missed receipts from cash purchases, that subscription fee that comes out of your personal credit card or Paypal account?)

• It makes it easier to monitor your income, expenses and liabilities especially if you have a linked Bank Feed through your Accounting software

• Makes analysing cashflow much easier

• Saves time when preparing your Activity Statements & Tax Returns

• It doesn't cost much (or anything) to keep things separate!

So what are you waiting for? Jump on your online banking right now and open that new, separate account... or 2! 😉