Managing the bank accounts in a nonprofit can be simple or complex, depending on the size of the organization and the amount of money and assets it possesses. The ideal bank account structure for a nonprofit with financial means of more than a few thousand dollars includes accounts for daily banking purposes, savings, investments, funding and reserves.
Daily Banking
A nonprofit’s daily banking typically requires a checking account, which the organization’s management uses for depositing receivables and payment of all regular costs. The checking account is the central hub of all the nonprofit’s bank accounts, and authorized signatories can usually transfer electronically between the checking account and the other accounts. Some banks offer business check cards, which enable the holder to pay bills and make purchases directly from the bank account without needing to write out checks.
Payroll
If the nonprofit organization has paid staff, it’s helpful to have a separate payroll account into which the full payroll amount is deposited well in advance. Compensation checks are issued or automated payroll is withdrawn directly from the account. Keep a buffer amount in the value of at least one extra payroll in this account to ensure that the organization is able to pay workers on time, regardless of delays in depositing receivables or generating income.
Short-Term Financing
https://yourloansllc.com/500-dollar-loan/
If a nonprofit doesn’t have a dedicated accountant on its staff, it’s easy to lose track of the cash flow, particularly if the organization receives funds erratically from donations, fundraising and grants. Читать далее “Structure of Bank Accounts for a Nonprofit Organization”