Reconcile Your 1099s

The new year is here and its time to prepare 1099s for Vendors and also reconcile Accounts Payable to the General Ledger. Here are a few tips that will help you stay organized for the year-end process.

You can review the 1099 information to verify the vendor information is correct before running Form 1099 by running a 1099 Vendor Activity Report and also creating a list of Vendors that were paid more than a certain amount.

Note: for the 1099’s, the minimum amount for some of the boxes like 1 and 7 is $600. To see a full list of amounts, visit What are the 1099 minimums per box.

If a Vendor is found whose 1099 activity is incorrect or has not been tracked throughout the year, the amounts can be easily corrected by following the steps on How to correct 1099 activity.

Before reconciling Accounts Payable to General Ledger you will need to post all transactions including adjustments from Banks and review the Reconciliation Guide; this will guide you the set up on how to run several reports such as The Account Distribution Report, the Open Invoice Report and the General Ledger Report. The guide will also talk about Troubleshooting Accounts Payable Reconciliation and what would be the common causes that will cause discrepancies against the General Ledger. Make sure that you are able to pin point the last time that you were in balance with General Ledger. If you run the reports for the last fiscal period and you see that you are out of balance then you would need to run the reports for a previous date to be able to determine a good starting point. The main things to focus on are the post date, the report set up, and a good starting point for a successful reconciliation.

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