A zero balance account permits divisions to disburse funds while maintaining centralized control of several bank accounts.

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A zero balance account is designed to maintain centralized control of several bank accounts while allowing a division or department to disburse funds as needed. The account is maintained at a zero balance, meaning that money is transferred from a master account to the zero balance account only when a payment is due, and only for the amount necessary to cover the payment. This helps departments avoid the need to maintain excess funds in their own bank accounts, while still allowing them to make payments when needed.

A Zero Balance Account Permits Divisions to Disburse Funds While