For each sub-account, you can specify a series of parameters:

- The frequency of target balancing transactions: daily, weekly, fortnightly, monthly;
- The balance required for each sub-account;
- The currency. Target balancing is carried out currency by currency: one target balancing procedure in EUR, another in USD, another in GBP, etc.);
- The threshold: minimum amount below which no transfers are effected;
- The time limit: to reduce the number of transfers, it is possible to wait a day or two before pooling all transactions with the same value date. This does not lead to any loss of value or information.
- Reporting is still undertaken on a daily basis and the transfers are executed with the correct value date.

The financial result for the accounts taken as a whole is better, given that the margin between the debit interest and the credit interest is cancelled out on the cleared balances.

The cost of pooling the balances of all the sub-accounts is usually lower than the total of the costs of all the separate, single transfers.

Offsetting debit balances reduces the level of indebtedness recorded in the group's balance sheet.

Management is simplified:
- clearer net balance,
- computerisation of numerous individual transfers, which saves time
- computerised reporting giving details of all target balancing transfers individually.

However, the disadvantage of target balancing is the cost of managing the cash pooling process:
- booking all inter-company entries
- calculating and booking the interest on inter-company loans generated by target balancing.

This also means that it is recommended for the company to have a suitable liquidity management software program.

Finally, target balancing reduces the autonomy of sub-account management, which is not the case with notional pooling.