I will admit that, from time to time, I get confused by some of the processes that I see being used to get things done. In the accounting world, one process in particular always keeps me wondering. Most companies have to go through it every year and it always seems unnecessarily stressful and arduous. I am not referring to manufacturing, the shipping of millions of items, inventory counts, managing a logistics chain or budgeting for next year … no, no … nothing that glamorous, I am talking about good old fashioned 1099’s. If you just cringed, shook your head or wanted to stop reading, I completely understand.
In talking with Dynamics GP users and researching the different processes that are employed to get 1099 forms out the door and filed properly, it became clear that all of the focus is put on the “end” of the process. So I started to think about why it is being done this way because NOT everything HAS to be done at the end of the year to get ready for filing 1099’s.
There are manual and automated things involved here. Everyone I know wants to get things done as accurately as possible while using the fastest and most efficient process. Why is that? People like to save money and time while maximizing productivity (their own and their co-workers). Anything to let the boss know how awesome we really are!
There is one part of “1099ing” that does not need to wait until the end, in fact it really should be done periodically (weekly, monthly, quarterly) because it will save you from having to do what some users have described as the most frustrating and time consuming step in the whole process. TIN Matching, yes TIN Matching – making sure that the 1099 vendor information in your system matches up with what the IRS has in their system.
This is a step that can and should be done throughout the year, rather than all at once at the end of the year. Dealing with the IRS poses its own challenges but at the end of the day, they make the information available and now Dynamics GP users get the benefit of streamlining the interaction between their systems and the IRS Bulk TIN Match service.
Here’s what happens to make this possible:
- 1099 Vendor data is pulled from Dynamics GP into The Validator1099 solution and allows users to quickly and easily give the list a once over for any obvious issues.
- After a quick review, a file that meets the IRS TIN Match format specifications is created and made available for upload into the IRS Bulk TIN Match Service.
- The file is uploaded and run up against the IRS data and users are notified when to retrieve the results file from the IRS TIN Match Service.
- The resulting IRS file is imported into The Validator1099 solution and analyzed, by vendor, based on what the IRS has determined are issues with the data.
- The file is then archived for future reference as needed.
- From this point users can use the report to track down any information needed to make sure the identified 1099 vendors are updated properly in Dynamics GP.
- Dynamics GP users now have a solution that takes the heavy lifting out of the TIN Match process.
Looking ahead to filing the next round of 1099’s, how nice would it be to have all of your TIN Matching done well ahead of time? Ponder that for a few minutes, trying to get the books closed and reconciled, trying to get financials pulled together, doing all of the other year-end tasks – now think about not having to track down vendor information or waiting for someone else to do it.
Learn how The Validator1099 will save you time and money during your busiest time of the year.
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