What is Zero-Balance Account?

A Zero-Balance Account (ZBA) is a financial tool commonly used in the construction industry to streamline cash management processes. In the context of construction, a ZBA is a checking account that is maintained at a zero balance by automatically transferring funds from a master account to cover any checks or withdrawals made from the ZBA. This allows construction companies to efficiently manage their cash flow and ensure that funds are always available for project expenses without leaving excess cash sitting idle in the ZBA.By using a ZBA, construction companies can centralize their cash management activities and reduce the risk of overdrafts or insufficient funds. This is especially important in the construction industry where projects often require large sums of money to be disbursed for materials, labor, and other