The tax filing season has begun and 1099 reporting is soon approaching its deadline. And our accounting team at Outsourced Bookkeeping has successfully helped hundreds of businesses get over the line with accurate and efficient 1099 reporting in shortest possible time.
Our accounting team has significantly cut the cost, saved time, got rid of the impending risk of penalties and have been complaint to all the updated tax rules to deliver the most effortless 1099 reporting possible. If you are business gearing up for a new tax season or looking for ways to solve the problems faced by your business during this one, outsourcing 1099 reporting can help you too.
If you are considering to outsource 1099 reporting and need for more information, then this blog is for you. Here we point the common problems and challenges of 1099 reporting and let you know how a remote accounting firm like Outsourced Bookkeeping can help you in this regard. So, read on:
Most Common Challenges of 1099 Reporting:
Limited Experience on Compliance:
While information reporting and tax filing are complex in itself, the regular changes in tax rules and regulations make it a more convoluted process. And on top of this, an organization may have to comply with varying requirements based on their location. And hence an organization needs a dedicated team of compliance experts experienced and trained to perform research and unearth new opportunities with the knowledge.
However not every accounting department can be up for an additional task, for they are well spent with their Accounts Payable, Account Receivable or other accounting responsibilities. Performing compliance research can again burden the resources. Keeping track of all the deadlines, tax rules and compliance across multiple locations can cost considerable time and increasing the risk of mistakes that can attract penalties while impacting other accounting functions too.
Communication Challenges in Planning and Exciting the Reporting:
While the compliance research itself can be a tough task on the internal departments, communicating the across multiple teams, updating the information into the systems can be huge burden with no dedicated team or department to handle the entire process.
Since multiple departments are involved in the process, the risk of miscommunication is high, and on top of that competing priorities can further bog down the process causing errors resulting in penalties even after spending loads of time, efforts and energy into 1099 reporting. With no dedicated team or department to direct the workflow, there is also a lack of accountability on errors, making it even further to fix the system.
Data & Process Challenges:
The whole 1099 reporting is notorious for the data and process challenges that involve reams of 1099, each of different variety. Adherence to the manual process can further increase the risk of errors, incorrect data, compliance issues which are more often caused by lack of technical resources and expertise which are common attributes of accounting firms which provide outsourced 1099 reporting services.
The whole 1099 reporting is a complex process that involves massive data entry, formatting the prints, state & global reporting and sending necessary e-transmittals to the state and other regulatory agencies. The errors and inaccuracies that can creep in any step either due to outdated technology manual process or lack of sufficient resources can result in penalties and additional work.
Compliance research, communication challenges and burden of manual data processing, each step of 1099 reporting offer challenges of its own which over the time can result in glaring inefficiencies often impacting other accounting systems too.
But guess what all the above problems can be solved by simply outsourcing 1099 reporting to an accounting firm with expertise in 1099 reporting services.
Outsourcing 1099 Reporting: A Solution
As a business, you do not have to go through the complicated and taxing process of 1099 reporting all by yourself when you can simply outsource the entire 1099 reporting process to accounting firms like Outsourced Bookkeeping. Our team of accounting experts with the help of our advanced in-house systems offer a comprehensive 1099 outsourcing solution.
You no longer have to worry about the updates IRS rules, compliance update of software, data entry, printing or filing or any other manual process. Outsourced Bookkeeping can help you get the job done quickly and accurately by avoiding all the errors, significantly cutting your administrative costs and saving a lot of time for your accounting team. If you are looking to outsource your 1099 reporting services, you can contact Outsourced Bookkeeping here: https://www.outsourcedbookeeping.com/