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Business savings accounts: Why every small business owner should have one

To the uninitiated, business banking can seem complicated. You need a glossary to understand the terms that are bandied about. (Well, what do you know? Here’s one we prepared earlier.)

But when push comes to shove, small business banking is no different to running a home. You might need a loan to buy it, income to keep it, and maybe some credit to get you by.

But one thing that gets overlooked is why savings is as important to a business as it is to any household budget.

So, let’s take a look at why a business savings account should be high on your business banking priority list.

5 reasons you need a business savings account

1. Set aside cash for tax payments

Taxes are unavoidable. Let’s rephrase that. Taxes are unavoidable for small business owners.

With a business savings account you can make the tax time a little less painful.

Just like setting aside money for your big bills at home, regularly setting aside a portion of your business earnings means you won’t need to stress come tax time. Just make sure you have a business savings account that doesn’t charge you for withdrawals like the Business+ Saver Account.

Lots of business owners go even further by opening a separate business savings account for every major expense they know is coming.

2. Keep an eye on incomings and outgoings

Small business finances can be unpredictable. Some months, the money flows in freely. Other times, it's like squeezing blood from a stone.

A business savings account helps you stay on top of these fluctuations. You can easily manage your cashflow, ensuring you always have enough to cover your bills, payroll, and other expenses.

Top tip: Always use separate accounts for your business and personal finances. You can read why here.

3. It can help you get business finance

If you have lofty plans to expand your business or invest in new equipment, having a healthy business savings account can make lenders sit up and take notice.

When you show them you're invested in your business’s success and have the disciplined savings to prove it, it gives lenders confidence that you’re capable of paying back a loan. It can even open doors to better financing options with lower interest rates, giving you more flexibility to grow your business on your terms.

4. Having money for the unexpected

Life is unpredictable. Why should business be any different? A sudden equipment breakdown. A client who doesn’t pay. A global pandemic.

A business savings account acts as your financial safety net. Instead of panicking, you can tap into your savings to weather the storm and keep your business afloat.

5. Save for your super

As a small business owner, you're in charge of your retirement savings. It's easy (and admirable) to prioritise the needs of your business and your employees over your personal finances. But remember, no one else is setting aside money for your future-self. It’s up to you. A business savings account can help you make regular contributions to your super fund.

Opening a Business+ Saver Account helps you manage your business finances, prepare for growth and plan for your post-business life.

Pretty simple when you think about it.

Open a business bank account with our Business app

Download the Great Southern Bank Business app for 100% online banking built specifically for smaller small businesses.

To learn more about the Great Southern Bank Business app and for tips on running a small business, visit our online Business Hub.

More from the small business banking hub

Everything you need to know about small business banking.

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Small Business Finance Glossary

There are a lot of financial phrases for small business owners – here’s a list of terms you might come across when running your business.

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Your pocket-sized business partner

For too long, smaller small business owners have had their unique business banking needs overlooked.

Our Business app is built for you.

Whether you’re striving for global domination, or you’re blissfully content as a sole trader, the Business app makes small business banking easy.

Download the app
General Advice Warning

The information provided here is general advice only. We haven’t considered your financial circumstances, needs or objectives. You should ask your Tax Advisor or Accountant before you decide about products mentioned in this article. All care has been taken to prepare this content, but no warranty is given for the information provided. Neither Great Southern Bank or its related entities, employees or agents are liable for the decisions or actions you take because of this information.