Account numbers are unique identifiers used to track individual bank accounts.
Account numbers tend to include a combination of letters and/or numbers. In the context of global payroll, account numbers may be formatted in specific ways to meet local regulations and banking requirements.
Account number vs. routing number
Routing number (aka ABA routing number)
- Nine-digit code
- Identifies financial institution holding a particular account
- Used for electronic transactions (direct deposit, wire transfers, automated bill payments)
- Unique identifier assigned by a bank to an individual account holder.
- Identifies and tracks the account
- Required for transactions like deposits, withdrawals, or transfers
Payment distribution platforms for global workforce
Companies with global workforces face their own hurdles with account numbers, including figuring out how to smoothly track accounts across different countries and avoiding fees associated with currency conversion and bank charges.
Here are some of the challenges companies can find themselves facing when they need to keep track of employee account numbers in more than one country:
Account number formats tend to differ quite a bit country to country. Figuring out how to create a standard for cross-country accounts is a major obstacle companies need to face to avoid errors or delays.
Different countries have different requirements and regulations surrounding account numbers. Figuring these out and keeping and always them top of mind can be time-consuming and increase the risk of errors and fees.
Incomplete or inaccurate account information
Incomplete or inaccurate account information can result in transaction errors and payment delays. For businesses with global workforces, this challenge can be even more difficult to navigate. It requires finding a payroll management method that answers this challenge efficiently and effectively.
Here’s where global payroll distribution platforms can come in especially handy. They can offer services and tools designed to solve the above-mentioned challenges, including:
- Standardizing account number formats across different countries
- Offering expertise in international compliance standards and requirements associated with account numbers
- Integrating with other platforms to ensure seamless tracking of account numbers