Zero balance checking accounts (ZBA’s) are a handy way to concentrate cash for investment purposes plus simplify accounting. The concept is simple. A regular checking account is used for deposits (these can be coded by your bank for location if needed) and all checks are written through ZBA’s. The account automatically pulls in enough cash from your concentration account to fund the checks.
You can separate payroll, any unique disbursement accounts, or various bulk plant operations through use of several ZBA’s. The bank fees are usually passed on to the main concentration account.
