How to change banks for your business banking

You’ve worked hard to build your business – but are your current banking arrangements holding you back? Switching banks may be simpler than you think, including moving your business finances from a personal account to a business bank account.

1. Choose the types of bank account that best match your needs

If you’re tempted to switch banks and open a personal account that’s also used for business, it’s worth considering the benefits of separating business banking from personal banking. The obvious one is how simpler tax time can be with your finances clearly separated.

 

You may wish to opt for a mix of business banking products and services – including a transaction account for everyday banking and a savings account for any surplus funds. When shopping around for a transaction account, compare fees and charges, note if a business debit card is included, and check if accounts can be managed side by side in online banking. 

 

With Westpac for example, many accounts can be opened and managed online for flexibility and convenience. They include:

 

 

You could also consider applying for a business credit card account to help keep track of your business expenses and separate them from personal purchases.

2. Provide customers with your new payment details

To get the cash flowing into your new bank account, make sure you notify your customers and any service providers of the change to your account details.

3. Transfer direct debits and other payments across

Exactly how you do this and how complex the process is will depend on the bank you’ve chosen to switch accounts to. If you’re changing banks to Westpac it’s relatively simple, and there are two main considerations:

 

• Direct debits – Check back over at least a year’s worth of statements to identify all the debits (and credits) that need transferring to your new account. Then contact both the people you are paying, and the people paying you, to give them your new account details.

 

• Regular payments (including staff wages) – If you’re banking online you should be able to export CSV files containing your Pay Anyone and BPAY® details from your old account – ensuring they feature the correct information (see our ‘import payment details’ guide). Then in Westpac online banking, import the payment details into your new account following the same guide. Now you can continue to make payments with ease.

4. Close your old accounts

Once your direct debits and credits are in place with your new bank, and any cheques you still receive have been presented to your old provider, it’s time to close your old accounts.

Enjoy the flexibility and time-saving features of online banking

When choosing a bank to switch to, you’ll most likely be looking for one that understands the key needs of small businesses – such as the desire to spend less time on banking and other admin. That’s why we spend a lot of our own time developing innovative features in online banking that are designed to support time poor business owners. 

 

We’ve already mentioned online invoicing, which you can do while you’re out and about. Online banking also allows you to easily collate cash flow information, share data with your accountant or bookkeeper, and link your eligible accounts to compatible accounting software – all of which could save you time each quarter and at year end.