A Zero Balance Account (ZBA) program consolidates balances from multiple sub-accounts into a single master account. This enables a business to segregate the collection or disbursement of cash.
During nightly posting of transactions, excess funds are either swept from the sub-accounts to the master account or from the master to the sub-accounts to restore all sub-accounts to a zero balance.
Benefits
- ensures that maximum funds are available for investment and overdraft protection
- requires no time or effort on your part, since the funds are transferred automatically each business night to return the sub-accounts to a zero balance
