A Note from Larissa
As the year winds down, now’s the ideal moment to focus on a few key financial tasks — gathering W-9s, preparing 1099s, and making sure your vendor records are in order. Getting a head start will help you glide through tax season without the stress.
Why Get Started Early?
It’s easy to let year-end tasks slide while juggling the holidays and final-quarter projects. But the earlier you start, the easier your January will be. Last-minute filings create unnecessary pressure — and increase the likelihood of mistakes that could lead to penalties. Even minor fines can add up quickly. By organizing your records and working with your accountant now, you’ll set yourself up for a much smoother tax season.
Making the Process Simpler
The secret to an easy 1099 season is year-round organization. Keep your receipts, invoices, and payment records sorted, and ensure every vendor’s details — name, address, and taxpayer identification number (TIN) — are up to date. The more complete your files, the faster your accountant can verify and process your forms.
Who Should Receive a 1099?
Generally, any contractor, freelancer, or small business that you’ve paid more than $500 over the year will need a 1099 form. This includes professionals you’ve hired through platforms such as Upwork, as well as attorneys and other service providers. While your accountant will handle the official classification, it’s smart to double-check payments yourself — catching small discrepancies early can prevent big issues later.
The Essential Role of W-9s
W-9 forms are the backbone of the 1099 process. You should collect a W-9 from every vendor or contractor before issuing payment. These forms contain critical information — including the taxpayer’s legal name, address, and TIN — that’s required to complete their 1099 accurately.
If you’re missing a few, now’s the time to request them. Tracking down W-9s in January often leads to unnecessary delays.
Profit First and Tax Prep Go Hand in Hand
Using the Profit First approach can make tax preparation far less stressful. By allocating funds consistently throughout the year — including for taxes — you’ll have what you need when deadlines hit. Stay ahead, review your allocations, and keep your 1099s organized now so that next year starts clean and clear.
Profit First and Tax Prep Go Hand in Hand
Using the Profit First approach can make tax preparation far less stressful. By allocating funds consistently throughout the year — including for taxes — you’ll have what you need when deadlines hit. Stay ahead, review your allocations, and keep your 1099s organized now so that next year starts clean and clear.