Your Partner for Bookkeeping and Controller Services

Contact Us

What are you interested in learning more about?

×

Supporting Strategies Blog

Time-Saving Tax Preparation Tips to Close out the Year

Share:

Time-Saving Tax Preparation Tips to Close out the Year

|

Taxes Concept on File Label in Multicolor Card Index. Closeup View. Selective Focus..jpegStaring down tax-related deadlines can be the stuff of nightmares if you haven't prepared in advance. Taking a few simple steps sooner rather than later will make life a little easier for your small business this coming tax season.

Here are our essential time-saving tax preparation tips to close out 2017:

  1. Clean up your vendor records. Confirm that you have W-9 forms on file for all vendors. Plus, merge duplicate vendors and deem as "inactive" any vendors that have gone unused for two years.

  2. Collect W-9s. Each time you take on a new vendor, be sure to collect a W-9 form to determine eligibility for 1099 status. In fact, make submission of a W-9 a requirement before issuing the first check — you'll find vendors will comply faster. When requesting W-9s manually, don't use email (which is notoriously non-secure). Rather, use a tool like Track1099, which allows you to request, obtain and store W-9s securely.

  3. Include limited liability corporations (LLCs). While you don't have to issue 1099s to corporations, the same doesn't necessarily hold true for LLCs. The answer depends on how the LLC elects to be taxed by the IRS (e.g. as a sole proprietorship, partnership or corporation). "In general, you are expected to send 1099-MISC forms to most small-business LLCs," according to author Anita Campbell at Small Business Trends.

  4. Update addresses. Confirming that you have the correct address for every vendor will save you the trouble of re-sending forms that are lost or delayed.

  5. Remember the new 1099 deadline. That's January 31, 2018. Make sure someone at your business gets on this task with plenty of time to spare.

That's it! Cover these tips in a timely manner, and you'll kick off the new year with a little less stress.

Lori Coleman

Author:

Lori Coleman

Lori Coleman, Director of Business Development, Supporting Strategies | 128 & South Shore, Providence, RI & Nassau County, provides bookkeeping and controller services to growing businesses.

Legal and Tax Disclaimer

This website is created by Supporting Strategies to provide general bookkeeping and accounting information only. Supporting Strategies does not provide tax, legal or accounting advice, and the information contained herein is not intended to do so. As such, the information provided should not be used as a substitute for consultation with professional tax, legal, and accounting advisors, and you should consult with a tax, legal and accounting professional before engaging in any transaction.