QuickBooks Small Business

A Winning Combination for Preparing 1099s

Written by Carrie Kahn

We just made it to our deadline to send out 1099s to our vendors on January 31! Phew! I learned a tremendous amount and I am very proud to share the combination of apps that I put in place this year to help streamline the process. Even though we are done with 1099s for this year, now is a perfect time to set yourself up for success for the future. Here, I will share the winning combination I used to prepare 1099s.

We are avid QuickBooks Enterprise users and we have strong inventory and job cost needs, so therefore we stay in our software. However, the combination shared here will also work with QuickBooks Online.

Tracking With Bill.Com

The first app I suggest using is Bill.com. It is important to make sure you set it up correctly. We use this app for paying our vendors. It also has the capability of accounts receivable but it has two problems. One, it doesn’t integrate with QuickBooks payments. Two, the additional features you get from e-invoicing are weak. The upside is that they do vendor payments very well.

The secret to using Bill.com is to get in the habit of entering in your bills in Bill.com first, as it is a one-way sync. It really doesn’t matter how you pay them, just get into that habit.

Identify Vendors Who Need a 1099

There are two tools within the app Track 1099 — one is for requesting W9s and one is for sending 1099s. Track W9 allows you to request an electronic signed copy of a W9 from your vendor. It will track from the stage of request to the vendor signing the form. This process will also help determine whether or not you need to issue a 1099 to this vendor. As I was testing this I realized we set up vendors that were incorporated and a 1099 was not necessary. Track1099 caught that!

After you collect this information, we recommend making sure you use this W9 information to set them up in QuickBooks accurately, mark whether or not they are supposed to get a 1099 or not, and enter in their Federal ID along with all the completed information.

Accurately Map the 1099 Tracking

Another setting you need to be sure to activate is the mapping of accounts that show 1099 activity. Examples are casual labor, commission expense, repairs & maintenance, and other labor accounts for non-employees.

You can then run the 1099 report in QuickBooks to make sure it lists all of the vendors that should receive a 1099 and the amounts over $600. This is how you will know if your 1099 tracking is accurate.

1099s

Streamline the Process

Luckily for me, we paid all of our vendors using ACH through Bill.com. With our setup, I was able to do an import from Bill.com to track 1099. I verified that all the amounts matched the report from QuickBooks. I also made sure my vendors were set up correctly so that the name, address, and federal ID all lined up properly. Then we were all set! Any adjustments needed could be done right on the screen.

The final step was to e-file them. I paid extra to have them stamped and mailed to ensure they were received.

1099s

The experience of these winning combos made for success for Complete Business Group to prepare 1099s for 2016. We recommend making sure you are utilizing these apps throughout the year to make your FY 2017 run smoother.


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About the author

Carrie Kahn

Carrie Kahn, the owner of Complete Business Group, joined the Intuit Reseller Program in 2008. CBG offers Intuit based solutions for End-users, ProAdvisors and Partners. CBG is now considered one of the largest and fastest-growing Intuit Premier Resellers (IRPs) in the world. The Complete Business Partner Program is helping ProAdvisors and other partners become better at their profession, increase their income substantially, and save their customers time and money. Carrie serves as a host for the Accountants, Bookkeepers, and Business Owners (ABBO) Facebook group as the QuickBooks Product Expert. She was named top 100 QuickBooks ProAdvisor of the Year for 2014, 2015, and 2016. She has been in the top 10 IRPs since 2012 and currently is ranked #1 in the East.

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