Stay on Top of Your 1099s with This Handy Checklist!

Tackling 1099s can feel overwhelming, but trust me, I’ve been there. As an accountant, I know the chaos that comes with managing vendor lists, tracking missing details, and making sure every form is filed correctly. It’s all too easy to feel buried under the weight of deadlines and IRS requirements. However, with the right system in place, the process can actually be smooth and manageable. That’s why I’m excited to share this with you—Stay on Top of Your 1099s with This Handy Checklist!

This ultimate 7-phase checklist was designed to transform what feels like a mountain into a series of simple, achievable steps. It keeps you organized, efficient, and ready to tackle anything that comes your way. Whether it’s cleaning up messy vendor records or ensuring accuracy in filings, this guide has your back.

Let’s walk through each phase together and see how you can simplify your 1099 workflow while staying stress-free!

Phase 1: Organizing Vendors for Flawless 1099s

The first step in staying on top of your 1099s is tidying up your vendor records. For example, have you ever pulled up a vendor list in QuickBooks (or other general ledger software) and found duplicates or outdated information staring back at you? This phase is all about ensuring accuracy and starting on the right foot to streamline your 1099 process.

Steps:

1. Cleanup Time: First, merge any duplicates and flag inactive vendors.
2. Client Approval: Then, pop those inactive vendors into a Q&A worksheet and get your client’s thumbs-up. Be sure to keep a record of their feedback.
3. Update Ledger: Afterward, update the general ledger with the approved changes to keep everything tidy and accurate.

Phase 2: Preparing the 1099 Vendor Report

Next, make sure your vendor data is ready for client review. This step sets the stage for ensuring accuracy in your filings.

Steps:

1. Generate Report: Start by using QuickBooks Online’s expense-by-vendor summary or Xero’s expenses-by-contact report.
2. Client Review: Then, share this report for client review, preferably using a living doc like Google Sheets for easy, real-time updates.
3. Fill in the Blanks: Finally, request any missing details, such as W-9 info like business names, addresses, and SSNs, to complete your records.

Phase 3: Setting Clear Expectations with Clients

In this phase, it’s time to solidify your approach with an engagement letter. For instance, have you ever had a client come back with last-minute surprises about scope or pricing? This step ensures that everyone is on the same page from the start, keeping your workflow smooth and your clients informed.

Phase 4: Verifying Details for Accurate 1099s

Now it’s time to run a TIN check. This step ensures that IRS rejections don’t disrupt your carefully planned process.

Steps:

1. Check TINs: First, match each vendor’s legal name, Tax ID, and address to their W-9.
2. Alert for Mismatches: Next, notify clients if any TINs don’t match and clarify who will reach out to vendors for updates.

Phase 5: Closing the Books for Seamless 1099 Prep

Before you start drafting 1099 forms, make sure everything is reconciled and in order. Think of it as a final cleanup before diving into the real work.

Steps:

1. Verify Payments: First, ensure all transactions are captured, including checks and app payments.
2. Year-End Close: Next, connect with the person handling the year-end close to ensure everything is accurate and complete.

Phase 6: Drafting and Reviewing 1099 Forms

With the groundwork complete, it’s time to draft the 1099 forms and share them with your clients for feedback.

Steps:

1. Create Drafts: Begin by using your 1099 software to draft the forms, saving them as PDFs.
2. Send to Client: Then, share drafts, note delivery dates, and track client feedback to stay organized.
3. Revise as Needed: Finally, adjust drafts based on the client’s input to ensure everything is spot-on before finalizing.

Phase 7: Finalizing and Filing Your 1099s

Finally, it’s time to file, distribute, and document your 1099s. This step ensures compliance and keeps everything in order.

Steps:

1. Finalize Edits: First, post any last updates in your accounting software, then download the final 1099 report.
2. Save Copies: Next, store final 1099s as PDFs for your records.
3. Send Forms: Lastly, distribute the 1099s via mail, portal, or any method your client prefers, and make sure you document each method for future reference.

Make 1099 Season Stress-Free

In conclusion, staying on top of your 1099s doesn’t have to be a nightmare. This 7-phase checklist helps you stay organized, prevent errors, and breeze through the process with confidence.

Want more practical tools and tips to simplify your accounting workflow? Visit my website for helpful guides and resources!