If you're using separate payroll and EFT clearing accounts on your books with a service like BeanStream or TelPay, then you would record the bank transfer as of the day of the pre-fund to the clearing account (usually zero).

This is the easiest for reconciliation, as you record a single prefund transfer just as you see it on the bank statement, and the clearing account should normally reconcile to zero after all EFTs and payments are made.

If your books are not set up that way, and / or if you're doing direct EFT payments, you can set up a clearing account for EFTs and just record journal entries in, and out, to keep track of the prefund transfer.

Payroll accruals are another issue, since the actual expense (hours worked during the fiscal year / month) won't always line up with the fiscal period of the pay date, your accountant may want a reversing journal entry to record the payroll expense and liability in November for the pay made in December

I hope that helps, please post back.

If you're using separate payroll and EFT clearing accounts on your books with a service like BeanStream or TelPay, then you would record the bank transfer as of the day of the pre-fund to the clearing account (usually zero).

This is the easiest for reconciliation, as you record a single prefund transfer just as you see it on the bank statement, and the clearing account should normally reconcile to zero after all EFTs and payments are made.

If your books are not set up that way, and / or if you're doing direct EFT payments, you can set up a clearing account for EFTs and just record journal entries in, and out, to keep track of the prefund transfer.

Payroll accruals are another issue, since the actual expense (hours worked during the fiscal year / month) won't always line up with the fiscal period of the pay date, your accountant may want a reversing journal entry to record the payroll expense and liability in November for the pay made in December

I hope that helps, please post back.