Things Every Small Business Needs to Do in January!
There are some serious accounting deadlines coming! We discuss these each year with our small business clients, and it always bears repeating.
At the end of January, each business is responsible to deliver a few key items to each vendor and employee. It is possible to postpone these, but not common. They include:
- W2s to every employee paid in 2012
- 1099s to every qualified vendor paid in 2012
Keep in mind, there are follow up deadlines at the end of February with IRS employer forms for each of these. In most small business accounting packages, these February deadline items are a simple step to finish up, so once you’re done with January tasks, you’re almost done with February.
We will keep you up to date with new “to do”s this tax season, but here is what you need to do this week.
This week, start here:
1. Run a vendor report that includes the amount you have paid to each vendor in 2012. Sort by amount paid. We will only be concerned with vendors paid more than $600.00.
2. Run a payroll report, showing every employee you paid in 2012. Include all mailing information on this report.
With the Vendor Report, looking at only those at $600.00 for 2012 or more:
1. Does each one have a full address and TIN? If not, you need it.
2. Go to your vendor filing cabinet, does each vendor have a W9? If not, you need it.
With the payroll report, check in with each employee (and ex-employee) to verify their mailing address. You can get it via email or phone, you just need the forms to land with them when you’re done.
Does this seem like too much for your small business? Need help finding the vendor report in your accounting package? Feel free to give us a call. We’re happy to help.
About the Author Barb Fisher
Barb is the CEO of Fisher Bookkeeping, an outsourced bookkeeping consultancy that provides small businesses with a full-service financial department. Her favorite aspect of work is to break down the accounting to meaningful bits, so entrepreneurs can make a powerful difference in their own business. She's also a power lifter (squat: 215, DL: 270).