Branch Accounting

Branch Accounting

The practice of keeping separate bank accounts for each branch of a company even though the branches together with the home office form a single, legal entity. Because branches are responsible for earning money for the company as a whole, the home office may take funds from the branch accounts and put them in its own account. Likewise, it may credit funds to a branch if the branch is having cash flow problems.
References in periodicals archive ?
THE Scottish Labour Party faces a pounds 36,000 bill to clean up its constituency branch accounting chaos.
There, he directed branch accounting, financial reporting, budgeting, job costs and cash flows.