December 2024: It’s 1099 Time Again!

Year-end close is upon us once more, and for both AP and AR, it can be a hectic time. It’s more than just summing up the preceding 12 months of financials — it involves a thorough review of the entire year. And when you factor in staff time off around the holidays, having an efficient system for managing the process becomes even more critical. 

A detailed checklist is an important tool for making certain you haven’t overlooked anything. There are plenty of them available online which you can download and customize to your needs, including several on IOFM’s website. However, the most important thing is to get a head start on the process. If you wait until it’s too close to the end of the year, you may end up spending long hours in the office when you’d rather be home with family and friends. 

This Month’s Quick Take: 3 Basic Best Practices 

While you’ll want to have a comprehensive, step-by-step process for the financial aspects of your year-end closing process, here are some basic pointers for helping you stay on track: 

1. Don’t become overwhelmed. This can lead to errors and confusion. If you need to take a step back to evaluate and reassess, do it. 
2. Divide and conquer. Rather than trying to tackle the closing process as one all-consuming task, breaking it into smaller chunks will make it more manageable and less daunting. 
3. If you run into snags and complications, make a note of them and be proactive about addressing them before next year rolls around. Learn from experience and get a head start for next time. 

Year-End Close Letter 

When it’s time for AP to close, everybody in the organization needs to cooperate by submitting any outstanding T&E reports, ready-to-pay invoices and approved POs. This customizable, downloadable letter template to staff lists the information AP requires to close and when it’s due from them. 

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Year End for AR

IOFM data indicates that closing the AR sub-ledger can take anywhere from a day or two to a week or two. If you’re consistently coming in on the high end of that range, we offer some pointers for making the process easier and more organized. 

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An Ending and a Beginning

Year-end isn’t just about a smooth AP closing. It sets the stage for a new year of financial record-keeping. For this reason, it’s important to start early and get it right. IOFM offers some advice for laying the groundwork for the year to come. 

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FREE WEBINAR: Wrapping Up 2024 with Confidence

Join IOFM for a free, on-demand webinar designed to simplify your year-end closing process. Learn expert strategies for reconciling accounts, managing accruals, and preparing flawless 1099s. Gain practical insights, best practices, and a detailed checklist to help your AP team close the books with ease and confidence! 

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1099 and 1042-S Master Guides to Compliance

With annual IRS updates to the tax code, compliance is key to avoiding penalties. IOFM Members can access the Master Guides for Form 1099 and Form 1042-S Compliance for FREE. Ensure you're prepared for year end—access the guides now! 

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MEMBER WEBINAR: 1099 and 1042-S Essential Checklist

Stay ahead of 1099 reporting requirements! Join IOFM and Cokala for an on-demand, comprehensive review of essential updates for accurate 1099 reporting. Learn about key filing deadlines, changes from IRS regulations, and best practices to ensure your organization is ready for the 2024 filing season. 

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