Four benefits of automating your 1099s

A 1099 is a tax form that can quickly become a headache for your finance team. The traditional, manual way of preparing a 1099 involves tedious steps that consume your team’s valuable time and often lead to human error. With Baker Tilly’s 1099 Automation & e-Filing tool, you now have the option to automate your 1099 process, allowing you to compile data reports easily, improve data accuracy, e-file, and save your team time.

1. Data validation and reporting

Traditional 1099 reporting is often tedious and error-prone, requiring manual report creation and one by one updates of vendor 1099 data. With an automated 1099 process, your vendor data is automatically compiled, allowing you to quickly update all vendors at once instead of editing one at a time.

Using an automated 1099 process also enables you to request up to date information, like address changes or W-9s, from vendors directly through the system easily and quickly. This ensures that when you file at the end of the year, you can be confident that all your vendor information is accurate and won’t lead to complications later.

Additionally, not all transactions from vendors should be included on a 1099 filing. Our solution allows you to easily review and determine which transactions should be included on the 1099 form.

2. Improved data accuracy

Eliminating the need to manually extract, manipulate and import or key in balances for filing means less human error and more data accuracy when it comes time to file. Automated TIN validation with the IRS reduces downstream issues from your 1099 filing. This means less back and forth between your team and vendors, and far less stress when it comes to meeting your end of the year filing deadline.

3. Simplified e-filing

E-filing your 1099s takes away the hassles of buying paper 1099 forms, figuring out how to get them to print on your printer, stuffing envelopes, and mailing them. It also lets you avoid having to file the related Form 1096 with the 1099 IRS copies, plus you get the added benefit of having until the end of March to e-file. Tax1099.com seamlessly integrates with our 1099 Automation & e-filing tool to ensure that you just file them once online and you're done. There is no risk that anything will get lost in the mail, so you can rest assured that you filed on time due to your digital receipt.

4. Save time

Typically, the scramble at the end of the year to file 1099s before the deadline can be time consuming. When your 1099 process is automated, end of the year stress is all but eliminated – your data is available in a quick and intuitive set of automated reports to review, quickly address any issues, and complete your filing with the click of a button.

You can go even further to cut down on end of the year stress by compiling quarterly reports throughout the year instead of saving everything for the already hectic holiday season. End the year on a positive note by not waiting to compile reports until December or January. Without your finance team scrambling to meet the end of the year deadline, they can instead use their energy to look ahead into the new year and become proactive in their decision making and future work.

The once-complicated process of compiling and filing 1099s can now be a thing of the past with 1099 Automation and e-filing by Baker Tilly. Prioritize your employees’ time and embrace accurate and timely data when it comes to 1099s by automating them. Meet deadlines without stress and improve your vendor relationships with a streamlined and simplified process.

Say goodbye to the end of the year headache, and hello to simple reports and easy filing.