The short answer
Starting a business? Learn the essential setup steps including a business bank account and accounting software.
The basic financial setup for a new business is simple: a dedicated business bank account and cloud accounting software like Xero from day one. Keeping business and personal money separate gives you clear records, accurate tax and far less stress. Add a few registrations and good habits, and you’re set up to grow.
What do you need on day one?
Business bank account and card: every business dollar in and out goes through it.
Accounting software: Xero connected to your bank feed.
Registrations: an ABN, a business name if you trade under one, and GST registration if you expect turnover of $75,000 or more.
A structure: sole trader, partnership, company or trust, chosen with advice.
Receipt capture: an app to photograph receipts as you spend.
Why separate business and personal finances?
Mixing accounts makes it hard to know your real profit, creates hours of bookkeeping to untangle and can cause tax issues, especially for companies, where personal use of company money has specific tax rules. Separation keeps everything clean and defensible.
What habits should you build early?
Reconcile Xero weekly; it takes minutes when it’s current.
Set money aside for GST and tax every time you’re paid.
Invoice promptly with clear payment terms.
Review a simple profit and loss each month.
What can wait?
You don’t need complex reporting, a CFO or advanced systems in month one. Start simple and add tracking categories, payroll and forecasting as the business grows.
A typical Melbourne scenario
Ella started a dog grooming business in Essendon. On day one she opened a business account, connected it to Xero and installed a receipt app. Her accountant registered her ABN and advised her to hold off on GST until turnover approached $75,000. A year later her tax return took an hour, and she knew exactly what she’d earned.
Key takeaways
A business bank account and Xero are the essentials.
Keep business and personal money separate from the start.
Register what you need, and choose your structure with advice.
Build simple habits early and add complexity later.
General information only. Talk to your accountant about your circumstances.
Read accounting software to set up from the start, or see our company setup and Xero bookkeeping services.
Marissa has over eight years of bookkeeping experience and a genuine passion for helping businesses take control of their finances. She's proactive, precise, and committed to making bookkeeping easy, accurate, and stress-free for every client she works with. Whether it's reconciling accounts, tracking cash flow, or streamlining financial systems, she's across the detail so you don't have to be.
