We currently have a general fund account, savings account, and a payroll account. For payroll, we transfer funds from the general account to the payroll account when we run payroll.
This was setup by a prior bookkeeper. Is this a fairly standard practice or do most churches run payroll from their general operating account? We use a third party payroll processor.
Comments for Best Practices for Payroll Account
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If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.
Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)