Tuesday, December 31, 2013

Hiring a Bookkeeping Service-The Perfect New Year’s Resolution!

Perhaps you are a business owner who knows it’s time to bring in a bookkeeper but you just aren't sure when to pull the trigger. The perfect time is right now! The start of a new year is the ideal time to hire a bookkeeping service. Being able to start at the beginning of the year means there isn't an up front time commitment to catch up prior months. It’s also a great time for the bookkeeper to assist setting up accounts payable and receivable systems. As business owners, the start of a new year is also when we commit to growing our business and expanding. What better way to do this than by freeing up the time you've spent doing your own bookkeeping?  Let the experts take care of the books, while you take your company to new levels.  So while you’re pondering how to improve it 2014, make hiring a bookkeeping service (and if you’re in Atlanta, specifically BBW Bookkeeping) your top resolution!

Thursday, December 12, 2013

Who Gets a 1099?

Before you know it, January will be here and that means it will be time to issue 1099s. As a refresher, below are some general guidelines on who to issue 1099s to:

  • All sole-proprietors/independent contractors paid more than $600 in fees (Not Employees)
  • LLCs paid over $600 with the exception of LLCs who are taxed as a C or S Corp
  • Attorney Fees
  • Rent over $600

A few other reminders include:

  • Make sure to buy 1099s for the current year. The year is printed on the forms and previous years are not accepted by the IRS.
  • Buy 1099 forms early. You can buy them from any office supply store but they tend to run out quickly.
  • Complete the form per the instructions. There are separate boxes for rent, attorney fees and contractor fees.

We suggest looking through your books now to make sure you have W-9s for everyone you are required to submit 1099s for. If any information is missing, request it as soon as you can. In case of an audit, you are fined per 1099 not filed. As a good rule of thumb, request a W-9 for everyone you write a check to just to be safe.