A zero balance account (ZBA) is ideal for companies that maintain a general operating account and separate accounts for payroll, petty cash or other purposes. With a ZBA, all of your company's funds are concentrated into one operating account, and disbursements are made from subsidiary accounts that always maintain a zero balance.
ZBAs eliminate time spent on manually funding subsidiary accounts, saving you clerical time and expenses. They remove the need to track balance levels or funding requirements and minimize the risk of overdraft fees. This account system enables more of your company funds to be available for investment and gives you greater control over disbursements. Used in conjunction with a sweep account, you can maximize your invested funds.
Bank SNB lets you easily track transfers and reconciliation through cross-referencing account numbers on bank statements in DirectBanker®, our online banking service. Using DirectBanker® to manage your ZBA is the best way to assure maximization of funds; a quick look at the history screen for your operating account will give you the collected balance for the day.
How it works:
- All funds are deposited into a central operating account.
- Subsidiary accounts for payroll, petty cash or other needs always maintain a zero balance.
- Each day, the total for all checks and other debits presented against each ZBA is offset by a debit to the central operating account.
Bank SNB’s experienced and knowledgeable staff can help your company develop an optimal account system to best serve your unique needs.
Talk with a Bank SNB treasury management representative in your area to determine if a zero balance account is right for you.