Accounting Tip of the Month: Mastering 1099s for Compliance and Efficiency
When it comes to 1099s, preparation is key. Staying proactive throughout the year can save you from headaches come January. Here’s how to stay ahead:
Collect W-9s Early
Don’t wait until year-end to collect W-9 forms from your vendors. As soon as you begin working with a new vendor, request their W-9. It’s a simple step that ensures compliance from the start.
Review as You Go
While processing vendor payments, double-check that you have a W-9 on file for each one. This ongoing practice keeps your records up-to-date.
Aim for Full Compliance
Even if a vendor sells you products or is a corporation, it’s good practice to collect W-9s from everyone. Tools like QuickBooks Online (QBO) Contractor Section or third-party platforms like Track1099 by Avalara can simplify tracking and storing these forms.
Start Early in December
Don’t wait until the last minute. Start reviewing vendor records in December and finalize everything during the first week of January. QBO’s 1099 Wizard is a fantastic tool for this task.
Go Green with E-Filing
There’s no need for printing or stuffing envelopes anymore! Send 1099s electronically. It’s not just convenient—it also helps reduce paper waste, moving you closer to becoming a paperless organization.
Staying organized with One 8 Solutions here to help! Let’s streamline your operations and give you peace of mind. Schedule a conversation today!
