While everyone else is saying “Happy New Year,” you might be thinking “oh no, it’s the beginning of another tax season.” In particular, you may dread 1099 reporting, which can be one of the most time-consuming tasks for business owners during tax season.
The 1099 form, of course, shows payments your company made to contractors and vendors outside of your organization. Sage Intacct, the cloud-based accounting solution, can help your company streamline the 1099 reporting process.
Using Sage Intacct to manage your 1099 reporting can help make the forms more accurate, because you don’t depend on numbers that have been manually input into various spreadsheets and systems. Instead, Sage Intacct uses the year’s data to automate the process, which also saves time. 1099 reporting is one of the many features of the accounts payable module in Sage Intacct.
Get ready for tax season year-round
You can start to prepare for tax season the moment you input contractor or vendor information into Sage Intacct, no matter what time of year it is. As you configure accounts during this setup, you can flag them if 1099 forms will be required. According to IRS regulations, you need to submit 1099 forms for anyone that your company paid $600 or more during the year.
Sage Intacct stores all of this account information. When it’s tax time, you can pull every account that has been tagged as 1099, print the information on 1099 forms and get them ready to mail to vendors. Tax forms, including 1099s, compatible with Sage Intacct are available from formsforintacct.com.
In Sage Intacct, you can associate a 1099 with a vendor or an employee and then print two different levels of reports, depending on the type of business you have and how you’ll be filing your 1099 forms. If your company has more than one entity, Sage Intacct allows you to print separate 1099s for each entity.
If some of a vendor’s transactions should not be flagged as 1099, you can override the 1099 setting as you enter the bills. Sage Intacct makes it easy to switch between 1099 entries and non-1099 entries.
Throughout the year, you can use Sage Intacct to run customized reports that highlight 1099 accounts. You can see detailed summaries of certain time periods, amounts paid, the type of 1099 forms and any other data you’re interested in. These reports can be easily emailed to others to share information or get approvals.
Straightforward ways to submit 1099 forms to the IRS
As you process your company’s 1099 forms, you’ll also be preparing copies to send to the IRS. If your business deals with less than 250 vendors who need 1099 forms, regulations allow your company to mail the forms to the IRS. You can print these directly from Sage Intacct and then mail them.
If you have more than 250 forms, your company is required to file those 1099s electronically with the IRS. To e-file the forms, you can use a third-party solution like Tax1099.com, a Sage Intacct Marketplace partner. Tax1099.com can be integrated with Sage Intacct to import your company’s data automatically, so you won’t have to enter the same information more than once.
Want to find out more about how to manage your company’s 1099 reporting more easily? Schedule a call with one of our experts to talk about how Sage Intacct can help your business save time during tax season – 800.274.3978. Or visit our website to learn more about why RSM is a proud member of Sage Intacct’s Presidents Club.