With the year-end around the corner, your heart is probably already racing in anticipation of all the tasks ahead. I know you’ll be ok and you’ll finish everything on time, but here are a few things that you can start doing now to make your life easier in January.

Prepare for 1099 Printing

It doesn’t matter when your fiscal year ends, you must print and mail the calendar year 1099 forms by January 31.

You’ll also have to file all 1099s with the IRS. Be aware the filing date changed this year! If you’re filing 1099-Misc with amounts in Box 7: Nonemployee Compensation—and most likely you are–the new filing deadline is January 31. If you don’t have amounts in Box 7, then the deadline is still February 28th for paper filing or March 31 for electronic filing.

To get ahead of the game you can run a preliminary 1099 report and review it to make sure all your 1099 vendors are set up as such in your system and their payable invoices are marked as 1099 transactions.

Prepare for W2 Printing

You also have to print and mail Wage and Tax Statements (W-2 form) to all your employees by January 31st and file the forms with the Social Security Administration by the same date. The new due date of January 31st applies to W2s for both paper and electronic filing.

To prepare for the W2 printing process, make sure you have all your workers classified correctly. Sometimes workers are classified as independent consultants when they are really employees and this is important because employees are issued a W-2 form while independent consultants are issued a 1099 form.

In addition, check your Employee’s Withholding Allowance Certificates (W-4 forms). Make sure you have one on file for each employee and that they show current employee information including marital status, a number of dependents and other tax related information.

Start gathering information for the auditors

Another task that may fall in your lap when you are working on year-end is preparing for the annual audit. To get a jump start ask the auditors for a to-do list so you can gather as many documents as you can now.

One thing the auditors will check is that all the sub ledgers match the trial balance. Check this before you close the books. A mismatch will raise a lot of questions from the auditors and create a ton of additional work for you. Now is the time to reconcile your accounts receivable and accounts payable aging reports against the corresponding balances in your trial balance. Do the same with every sub ledger.
And since the auditors will most likely ask you for testing samples, ask them if you can have the requirements now. If you start pulling invoices and payroll files for months that are already closed, you’ll only have to extract a couple of months’ worth of data in January.

Install and Test Software Updates for Year-End

If you have on-premise accounting or payroll solutions, you should install and test all year-end related software updates as soon as possible. But if you have a cloud accounting solution like Intacct this is not a reason to be concerned. The team of experts at Intacct will make all changes, test them and install them for you.

Also, with Intacct, you have custom fields that allow you to organize and sort transactions for analysis. You can also upload external or complex journal entries. And Intacct dashboards and standard and custom reports reduce the time you spend producing reports and answering questions.

Contact us so we can give you more tips to prepare for year end and show you how Intacct can save you a lot of time in the process.