It's a good idea to perform certain tasks with your financial records at the end of the year. Some of the tasks are just good financial housekeeping; others are required by the government.
Fortunately, you can spread the tasks over the period from December to January.
December is a good time to tie up loose ends, make distributions, get ready for 1099 filing (if you have contractors), and start prepping for taxes with your accountant.
Setting up and preparing 1099s is a feature that's available only in QuickBooks Plus.
January is when you should reconcile your accounts, prepare summary reports, do the bulk of the work required for 1099s, and (optionally) close your books for the previous calendar year.
If you used contractors and completed 1099s, January is when you're required to file that information with the government. Otherwise, if you haven't already, get in touch with your accountant about preparing for tax time.
Do you have employees?
If you have employees (not independent consultants or contractors), there are additional tasks you should complete at year end, along with additional government forms to file and deadlines to meet.
- If you use QuickBooks Payroll, click Employees in the navigation bar, and then click the Payroll year-end guide button to view information about year-end payroll tasks.
- If you use a different payroll provider, consult them for items and forms to complete at year end.
Have employees but no payroll provider yet? Learn about your options with QuickBooks Payroll.
Do you use consultants?
If you don’t have employees, but use outside consultants or subcontractors, you may need to file 1099-MISC forms. If you’re unsure about filing 1099s, consult your accountant.
Interested in e-filing your 1099s?