Home – New Forums Starting your journey Can I recieve payments into my personal bank account?

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  • #967276
    Cage
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    I’m a sole trader trading under a business name for my web design company. Can I recieve online payments (paypal, paymate, direct bank deposit) into my personal bank account?
    Is this legal?
    Is this possible?

    #1025116
    BrightBiz
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    Cage, post: 29684 wrote:
    I’m a sole trader trading under a business name for my web design company. Can I recieve online payments (paypal, paymate, direct bank deposit) into my personal bank account?
    Is this legal?
    Is this possible?

    Hi Cage,

    As I am a sole trader, I am currently just using a personal bank account. I did however set up a second personal account so it wouldn’t be confused with my everyday banking.

    For me, I found that the expense and features of a business account weren’t necessary, so simply using a personal account suits me fine, as a sole trader, your business transactions all come back to your personal TFN and income so there’s really nothing wrong with it as long as you keep business/personal seperate.

    Hope that helps,

    Loreena

    #1025117
    Cage
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    Thanks Loreena, I was unsure because I’m trading under a business name now and didn’t know if that affected anything. I’m with Commonwealth Bank and I have netbanking, can I set up a second account online without going into the bank?

    #1025118
    BrightBiz
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    Aaahhh yes, that’s a good point, perhaps you will need an account in your trading name? I know that I set up my extra account via my online banking with St George, it’s all in my name of course.

    I guess what it comes down to is that it depends on how you will recieve payments. If you are simply transferring them or receiving the payments online, then the account name won’t really matter, however if people are writing cheques to your business name, it may affect you perhaps.

    Maybe a quick call the the commonwealth might be an idea?

    #1025119
    Tracey Anne
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    I’m a sole trader too and like Loreena I just opened a separate personal account for client payments. You just have to remember to tell clients if they’re making direct deposits to make them in your name, likewise if paying by cheque they should be in your name not the business name.

    #1025120
    Jake@EmroyPrint
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    My partner works in the commonwealth bank and said “Yes, you can open an account without going into the branch, either call or apply online”

    I’m with CBA too – I’ve got a business account, which is linked to my savings account.

    You don’t have to keep them separate, but it’s recommended that you do. Maybe won’t be that important now, but as you start to grow your going to want to be able to differentiate what cost is what.

    #1025121
    Accountix
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    I always recommend customers run a separate bank account for their business.

    Doing this will save bookkeeping costs. Paying bookkeeper to sort through a personal account sorting personal from business transactions can be an expensive exercise.

    Shane Holbeck – Accountix
    http://www.accountix.com.au

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