What is ZBA?
A(or ZBA) is a business-oriented bank account that usually has a balance of $0.
How Does ZBA Work?
For example, let's say that restaurant company XYZ keeps its accounting department writes checks on Account B, a checking account that Company XYZ has set up as its ZBA, to pay the bills due that week. This week, the amount of those checks is $40,150.in Account A, an interest-bearing account. Every Tuesday, its
Company XYZ wants to keep its cash centralized in one account that pays interest. To keep as much money in the interest-bearing account as possible, Company XYZ moves only $40,150 out of Account A into Account B on Tuesday so the checks clear.
Why Does ZBA Matter?
ZBAs help companies avoid havingspread out over several different bank accounts, which costs the company interest and creates more bookkeeping work.
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