The time is almost upon us for year-end reporting! For some of you that may mean trying to gather information for your contracted workers in order to prepare and send out their Form 1099’s before the January 31st deadline.
QuickBooks can be a wonderful tool to help you accomplish this. You will want to first make sure your QuickBooks file has the proper expense accounts mapped so that it recognizes which expense accounts you use to record your contract labor payments or bills to professional services.
Here is a step by step guide of how to make sure your expense accounts are mapped properly:
- You will first want to change your QuickBooks file to single user mode if it is not set that way already. You can do this by going to File, Switch to Single User Mode.
- Once you are in Single User Mode, you will want to go to the Edit tab and choose Preferences.
- From the Preferences box you can choose Tax: 1099 from the left hand column. Once you highlight Tax: 1099, you will want to choose the tab labeled Company Preferences.
- From the Company Preferences you can choose to Map Accounts to Boxes on Form 1099-MISC. Just as a general guide, expenses such as contract labor and professional services should be mapped to Box 7, Rent expenses can be mapped to Box 1, and gross proceeds paid to an attorney can be mapped to Box 14. These are some of the most common expenses that can be treated as payments to be included on a 1099.
- Most importantly, always make sure you have a W-9 on file for anyone that should be issued a 1099!
Larson & Company is always happy to help you prepare and file your 1099’s. We are QuickBooks experts and can help you with any questions you may have for your small business. Feel free to contact us at any of our offices today.