1099s can be a challenging season for any business owner, partially due to the quick turnaround needed for receiving vendor information and the IRS deadline at the beginning of the year. To set yourself up for success, we recommend reviewing these best practices below.
Financial Best Practices
Your financials are important on a monthly and quarterly basis when it comes to how you run your business. In addition, financial best practices are important for 1099 season, since these ultimately impact which vendors may be eligible to file a 1099.
It's critical to review your financials on a monthly (or quarterly) basis to ensure coding, transactions, and balances are all up to your expectations. Our Financial Consultant team is equipped to confirm or look into any questions or changes you may request. See here for how to review your Profit and Loss or Balance Sheet on a regular basis in Edge.
Vendor Best Practices
Vendor management can be a hassle and cumbersome when done all at once, but it doesn't have to be if the right disciplines and practices are exercised upfront. We recommend the below best practices for vendor management to keep yourself organized and ready for each 1099 season.
As soon as you begin working with a new vendor, a great way to set yourself up for success is to obtain a W9 from that vendor early on. Even if throughout the course of the year the vendor does not end up being 1099 eligible, at least you have the information in case they are. That way, you don't have to reach out to them at the beginning of the year to see if they can provide this.
Edge Best Practices
When it comes to 1099s, our Edge software is the best place to review all necessary items and vendors needed. We've created these tools to make the 1099 season as easy as possible and so we highly recommend keeping a pulse on these features throughout the year to set yourself up best for success.
1099 Manager updates to the current year data May 1st each year. This means you can begin reviewing and editing current year vendors as they are added to your vendor list as early as mid-spring each year - making the 1099 process less hectic as we approach the January deadline.
1099 Primary Contacts will be able to review this data regularly and make changes to vendors that are in Incomplete status throughout the year. If you prefer a different member of your team be listed as the 1099 Primary Contact, please connect with us.
Action Center items will only be visible to the designated Open Item Contact for your location(s). If you prefer a different member of your team be listed as the Open Item Contact, please connect with us.