Currently, there are drastic legislative changes that are being proposed in reporting load income. The idea behind these changes being that the 1099 form can be used to track all purchases of over $600 regardless of if the company is a corporation and/or a partnership etc. Sound crazy? You bet your administrative nightmare it is.
Luckily for Quickbooks users, all vendors can be tracked by setting up accounts for credit cards and petty cash. For example, if you have a lot of vendors that take AMEX, Quickbooks can track the vendors in the AMEX account. Do the same in your petty cash account. This method is much easier than simply placing AMEX as a vendor in the check register and paying the bill using split lines. Nobody wants to go through 12 different AMEX, VISA, Discover and/or MC bills to make sure you’ve caught all the vendors. By setting these accounts up ahead of time you will breeze through the thousands of 1099’s you will have to do in 2011. Sarcasm aside, the rule of thumb is to always invest the work before the task and not wait until the end of the year. The real challenge is finding the resources to make that rule come true. Happy New Year!
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