Intuit has produced accounting software since its inception in 1983, and the hugely popular Quickbooks has been for small businesses what Quicken has been for individuals. Multiple versions of Quickbooks are available, for different countries and for both PCs and Macs. In addition, users can choose between desktop and online versions. Read More »
First off, please understand that this is not a sales pitch for any particular accounting software or software consultant service. Regardless of whether you use QuickBooks, Peachtree, Great Plains or a much larger, comprehensive accounting software system, having your accounting staff well-trained on the use of your accounting software is an important value that is often overlooked. Read More »
One of the biggest, and unfortunately most common, mistakes small business owners make is making late tax deposits and late filing of tax returns. The IRS brings in plenty of revenue from penalties, and interest generated from these mistakes. It is worth the time to set procedures in place to make sure that tax filing and deposit deadlines are met.
There are generally two different issues, which result in IRS penalties being imposed on small companies. One is the genuine unintentional missing of deadlines and the other results from spending funds that should have been set aside for tax deposits, particularly payroll tax deposits. We’ll address each separately.
In addition to selecting all your appropriate accounts under the 1099 setup preferences, discussed in our previous post, you will need to set up your 1099 vendors properly as well. Under each vendor’s setup there is an Additional Info tab. On this tab, you will find a check box labeled “Vendor eligible for 1099”. Right above this check box is a field for entering the vendor’s tax ID number. For every vendor who provides services for you, and is not incorporated, you should have the 1099 box checked and their tax ID number recorded. This includes vendors whom you haven’t paid, or don’t expect to pay, $600.00 or more. It will also be important to have their mailing address in your vendor setup for 1099 purposes as well.
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If you hire services performed by other individuals or companies during the year, you may be required to supply them with a 1099 form at the end of the year, showing the full amount of funds distributed to them for their services. Corporations and vendors whose total payments for the year totaled less than $600.00 do not need to receive 1099 forms, but the rest of those vendors will. In order to print out accurate forms at the end of the year from your Quickbooks software, you will need to make sure that you have your 1099 settings in Quickbooks set appropriately.