Banking and Cash Management Glossary

Operating Account

The main business checking account where all revenue deposits and all business expenses are paid from. The hub of your cash flow.

Tax Reserve Account

A separate account used exclusively to hold funds set aside for quarterly estimated tax payments and your annual tax bill. Funded by transferring 25 to 30 percent of each deposit from your operating account.

Owner Pay Account

A separate account where a fixed owner salary is transferred on a regular schedule. Personal expenses are paid from this account, not from operating. Keeps owner draws visible and separate.

Bank Feed

The live connection between your bank and QuickBooks Online that automatically imports new transactions each day. Eliminates manual entry and reduces errors.

ACH (Automated Clearing House)

The electronic network used for direct bank-to-bank transfers. Common for payroll deposits, vendor payments, and estimated tax payments to the IRS and FTB. Typically takes one to three business days to settle.

Reconciliation

The process of matching every transaction in QuickBooks against your official bank statement to verify accuracy. NCO completes this monthly as part of your close.

Corporate Veil

The legal separation between you personally and your business entity. Commingling personal and business finances is one of the most common ways to pierce the veil and lose liability protection.

Commingling

Mixing personal and business finances in the same account. Creates bookkeeping problems, tax risk, and potential liability exposure for LLC and corporation owners.

CSV Upload

A manual method of importing bank transactions into QuickBooks when a live bank feed is not available. You download a statement from your bank as a .csv file and upload it under Bank Transactions in QuickBooks.

Wire Transfer

A direct bank-to-bank transfer, typically processed the same day but with a fee of $15 to $35 per wire. Used for large or time-sensitive payments.

Bank Statement

The official monthly record issued by your bank showing all transactions, the opening balance, and the closing balance. NCO uses this as the authoritative record during reconciliation, not the QuickBooks balance.

Sweep

An automatic transfer triggered by a rule, such as moving a fixed percentage of each deposit to the tax reserve account. Can be set up through your bank or through a platform like Relay.

Relay

An online business banking platform commonly used by NCO clients. Supports multiple accounts under one login, no monthly fees, and integrates directly with QuickBooks.