Direct deposit is a process where you create electronic files rather than paper checks. These files are sent to your bank and money is moved around by your bank as needed.
Here is how it works. You perform your basic accounting functions as usual. You prepare checks and payroll checks in Total Office Manager as you normally do. Instead of printing a check, you create a file that is sent to your bank via email or other means. Instead of handing a check to your coworkers or vendors, the bank uses the file you gave them to transfer money electronically. Its all safe and easy.
You can still print a Notice of Direct Deposit and hand this to your coworkers if you wish.
Setting Up Direct Deposit
- The first step is to contact your bank and request paper work to get signed up. This is unrelated to Total Office Manager and must be done no matter what method you use to manage direct deposit.
- Click Banking | Direct Deposit | Company Setup to open the Company Setup form. Fill out the various fields as needed. Click here to view the help topic on this.
- Ask your employees if they would like to participate in the direct deposit initiative. If they do, they should fill out a permission\authorization form. Your bank should be able to provide you with a sample that you can use. We have also included one for you in Program Files\TotalOfficeManager\Documents. Or the folder where Total Office Manager was installed; if different.
- Click Banking | Employee List. Select an employee, click | Menu | Direct Deposit | to open the Employee Direct Deposit Setup form. Fill out the various fields as needed. Click here to view the help topic on this.
- If you wish to pay vendors using direct deposit, you will need their permission. Again, your bank may have forms that you can use. Setting up vendors works just like employees. Click Banking | Vendor List. Select a vendor, click | Menu | Direct Deposit | to open the Employee Direct Deposit Setup form. Fill out the various fields as needed. Chick here to view the help topic on this.
Processing Direct Deposit
- Write payroll and\or regular checks and usual.
- Check the Mark for Direct Deposit checkbox on each check you wish to be part of the direct deposit. This option is on the check.
- When you are ready to process direct deposit (this may be once a week or what period you decide), open the Process Direct Deposit List.