A Zero Balance Account is often used for accounts payable and payroll disbursements. This program consolidates balances from multiple collection and disbursement accounts (sub-accounts) into a single master account.
During nightly posting of transactions, excess funds are either swept from the sub-accounts to the master account, or funds are swept from the master to the sub-accounts to restore all sub-accounts to a zero balance.
- Segregates the collection or disbursement of cash
- 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