Preparing for the end of the year – already!

Even though it’s only September, it’s time to start preparing for the end of the year for your bookkeeping process.

blue-river-bookkeeping-1099-misc-2010

If you’ve hired any independent contractors, begin going through their files and making sure that you have all of the required information for your tax preparation.

Hiring independent contractors means you will likely need to supply the contractors and the government with form 1099’s and the government only with a form 1096.

These forms require the contractor’s name, company name (if applicable), address and tax ID number (social security number or employer identification number).  The last item is often the most difficult to get.

Fortunately, the IRS provides form W-9 (http://www.irs.gov/pub/irs-pdf/fw9.pdf) that can be sent to your contractors to request their TIN.  You then keep the form on file, no need to send it to the IRS.  Doing this legwork now will save you a lot of headaches in December and January.

By the way, 1099’s and 1096’s require specially printed forms that can be purchased at your local office supply store.

These accounting tips are sure to keep you business running smoothly.


One Response to “Preparing for the end of the year – already!”

  1. Judi says:

    Katie —

    This is such great information. Thanks for sending this reminder so early in the year. It will help me to gather the necessary info for my accountant!

    You’re the BEST!

    Judi