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.

About the author

Carrie Kahn

Complete Business Group helps small businesses purchase the RIGHT QuickBooks product at the lowest price and offers a team of experts to provide high level customer service so that they use QuickBooks® the way it was intended. With the many offerings from online to desktop we understand the benefits and limitations of each option to help you find the right solution. We have a team of certified ProAdvisors located all over the US ready to support you remotely or locally.

Carrie Kahn, CPA, the founder and CEO of Complete Business Group, has been helping small businesses purchase the RIGHT QuickBooks product at the best price and offers a team of experts to provide high level customer service so that they use QuickBooks®the way it was intended.

Carrie has been supporting and selling QuickBooks since Dos V1. She has been an Advanced Certified ProAdvisor since 2002. She joined the Intuit Reseller Program in 2008. In 2015 she launched the Complete Business Partner Program
mentoring ProAdvisors in selecting the best QuickBooks products for their clients at best pricing for their customers. She is very involved in the QuickBooks community providing extensive resources for ABBO Facebook group , Scaling New Heights, School of Bookkeeping, CPA Academy, Intuit’s Firm of the Future, and CBG Blog. Carrie is a lead QuickBooks Author for the Accountex blog. She was named Insightful Accountant’s Top 100 ProAdvisor every year since 2014 and was Insightful Accountant’s 2017 Social Media Resources ProAdvisor. She currently serves on the Intuit Reseller Program Council. CBG has been in the top 10 Intuit Premier Resellers (IRPs) since 2012 and currently is ranked #1 in the East. She is currently serving on the IRP Council. Carrie’s company, CBG was named Partner Program of the year for 2017.

3 Comments

  • I don’t understand why you would need all these crutches (apps)??? Doesn’t your version of QB provide you with Financial Statements? Or it does but you didn’t know how to set up your Chart of Accounts correctly?

  • Quickbooks provides the financial statements you need to prepare the 1099s. These tools are optional so you don’t have to prepare them manually.

    • Thanks for sharing the apps that streamlines 1099-MISC filing. I have used both Track and then Tax1099.com. I find it Tax1099.com fully integrated where W-9 solicitations converts in to a actual recipients, eliminating a need to enter the same recipients/vendor twice. Track requires dual entry. Also, TIN Match feature within Tax1099.com is a blessing. Love the platform feel the ease of use within Tax1099.com efiling platform.

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