WHY DO COMPANIES HAVE MORE THAN ONE BANK ACCOUNT?
There are multiple reasons a business may choose to have more than one bank account.
- Some companies have a main cheque account and then a tax management account. They transfer regular amounts into the tax management account from the main cheque account so that when it is BAS and tax time or super needs to be remitted they have the funds available.
- Some companies may have a couple of different aspects to their business and like to keep everything totally separate. This is particularly true with businesses that still adopt the old manual bookkeeping strategies which often required things to be kept separately in different bank accounts to make things easier. However, businesses that use computerised accounting packages can very easily segregate aspects of their businesses without having separate bank accounts, by using Cost Centres or Projects.
- Businesses may have different types of accounts also. For instance they may have a cheque account, a savings or investment account, a visa card, an AMEX card etc. This is very common. A business, like a person, has varying needs and they may need more than one account to satisfy these needs.