Get the Tips and Tricks that every Bookkeeper should have in their bag, courtesy of our Accounting Services staff.

Valerie & Candy's Tip

Filing the new 2020 1099 NEC and 1099 MISC in QuickBooks Desktop & QBO

QuickBooks Desktop

Please note this update will only be available in these QuickBooks versions: QuickBooks Desktop Pro and Premier 2020, 2019, 2018. QuickBooks Enterprise Solutions 20, 19, 18.

  1. Be sure you have run the recent update for Quickbooks
  2. There are now 2 places to run the wizard: To map your vendors, go to Vendors, 1099 Forms, Print/EFile 1099 Forms or File, Print Forms, 1099s/1096
  3. It may ask you to create a back-up of your file.
  4. Go through the wizard separately for NEC and MISC. All the vendors you have designated as eligible to receive 1099’s will be listed. The only difference for 2020 will be to separate the vendors into two filing types the NEC (non-employee compensation) and MISC.
  5. After you have gone through both wizards, you can review the reports which are still in the same place as prior year versions. Vendors, 1099 Forms, 1099 Summary Report
  6. Please note you will have to toggle between NEC and MISC in the report options section located in the upper right-hand side of the report to see the amounts.
  7. After you have verified the amounts and vendor information you will go to the wizard again to run both returns to print the filing copies. This will look and work like prior year versions.


  1. Open your QBO program, on the left sidebar, click Expenses/Expenditures.
  2. Far right top click Prepare 1099s.
  3. Click continue your 1099s
  4. You will see a box of your vendors set to receive a 1099.
  5. Bottom left hit the back button.
  6. This will open a box to map your 1099’s. There are two to choose from.  Starting for 2020 you have the 1099 NEC (non-employee compensation) and 1099 Misc.  You will probably use the 1099NEC for most of your vendors that are to receive a 1099.  The 1099 Misc. will be for all others types of pay, mostly for rent and attorney’s.    If you have any mapping already set, it will show you the accounts being mapped.  If you need to add more accounts to the mapping, just click on the drop down and choose the additional accounts you want.
  7. When done hit next. This takes you back to the list of vendors already set to receive a 1099, you can review them and add any additional vendors or correct information.  If information is missing it will show in red.
  8. Hit next and you can see what 1099s have been prepared. If not correct and you need to make changes or add vendors, hit the back button and make the corrections.
  9. When done you can click Finish Preparing 1099s and print.

Charlene's Tip

Deliver 1099s Online

QuickBooks Online offers you the ability to prepare and e-file 1099s with the Intuit 1099 E-File Service.

QuickBooks will also mail a printed copy to your contractors at no additional cost, or you can invite your contractors to sign into a secure online portal to access their 1099s rather than having to wait for their printed copies in the mail.

 Ask your accountant how to prepare your 1099s through QuickBooks!

Charlene's Tip

Convert your QuickBooks Desktop to QuickBooks Online!

Want to be able to access your books anywhere you are? Consider converting your QuickBooks Desktop file to QuickBooks Online. Transferring your information from your desktop to Intuit’s safe and secure cloud service takes about 30 minutes, and opens up a streamlined, user friendly interface and easier access to your important accounting data.

Charlene's Tip

Team up with your Accountant

Did you know you can give your accountant access to your QuickBooks Online company file? This will allow them to review your books and help you with any tricky or confusing transactions, as well as make tax filing time much easier.

Interested? We can help walk you through the process of adding one of our accountants to your QuickBooks Online.

Charlene's Tip

Who Gets 1099s, & Who Doesn't?

In general, you will need to send 1099s to anyone you have paid $600 or more for rents, services (including parts and materials), prizes and awards or other income payments made for business purposes. Recipients can include any individual, partnership, Limited Liability Company, Limited Partnership or Estate.

 Some common exceptions (people or businesses you don’t need to send 1099’s to) include corporations, real estate agents, property managers, or sellers of merchandise, freight, storage, etc. You do need to send a 1099 to any lawyer you paid $600 or more to, even if they are incorporated.

A best practice for this season is to make your list, check it twice, and collect W-9 information for the people and businesses you don’t already have the social security/federal employer identification/taxpayer identification number and address for.

Valerie's Tip

Review Vendor 1099 Information

Now is a good time to review your vendors for 1099 information. You can send a note to the vendor or a W-9 to get the missing information before we go into the new year when it will be needed.

Desktop: Go to vendors, print/efile 1099’s, run the review 1099 vendors, review for missing information. Determine if you didn’t fill in the info or need to send the vendor a W-9. Once you get the information, go to the vendor file and update it. You can also drop and drag a copy of the 1099.

QBO: Go to expenses, in upper right prepare 1099’s, continue to 1099’s, you will see a list of your vendor’s that you have checked the 1099 box in their file. You will see in red any information that is missing. Determine if you didn’t fill in the info or need to send the vendor a W-9. Once you get the information, go to the vendor detail and update it. You can also drop and drag a copy of the 1099. 

Also see Candy’s 8/20/20 tip on 1099’s.

Valerie's Tip

Type of Compensation That May Need to be Added to an Employee's W-2:

The first week of December is a good time to review different types of pay that should be included in an employee’s W-2.

You will want to look at this early in the month so you will have time and make sure the employee has enough pay to offset the tax that will need to be added to their W-2. Remember these type of pay do not add to the employees total compensation but are taxed, so their pay for the pay period is reduced by the amount of taxed owed. This needs to be done before you run your final payroll for the year. 

Personal Use of Company Car:

Employees who drive a company-provided vehicle for personal use must report the taxable value of the benefit at least once a year. To determine the value of the benefit, you should refer to Publication 15-B: Employer's Guide to Fringe Benefits.

When you determine the value of the benefit, we can include it on Form W-2. Personal Use of Company Car (PUCC (car)) fair-market-value (FMV) amount is reported on Form W-2. And is included in Box 1, 3, 5, 16 and 18 wages. The value should also be reported in Box 14 (PUCC (car)). S-Corp Health.

While S-Corp owners are generally considered employees for tax reporting purposes, the IRS has special rules for these individuals when it comes to Fringe Benefits. Company paid health insurance is taxable for income tax withholding, but exempt from Social Security and Medicare. State taxation varies by jurisdiction. S-Corp amount is reported on Form W-2. It's included in Box 1 wages and Box 16 (depending on the state) and Box 18 (depending on the local jurisdiction). The value should also be included in Box 14 (S Corp Owner). Group Term Life Insurance (GTL).

Company provided GTL is a non-taxable fringe benefit for coverage of $50k or less. When the company provides greater coverage, the value in excess of $50k is taxable. And valued according to a specific IRS formula.

To determine the value of the benefit, you should refer to Publication 15-B: Employer's Guide to Fringe Benefits. The amounts are reportable for federal income tax but not subject to withholding. However, they are subject to Social Security and Medicare for both. Employers who want to collect the FICA from employees need to process these entries with a regular pay check that has enough net pay to cover the tax. State taxability for PIT and UI varies by jurisdiction.

Group Term Life (GTL) is reported on Form W-2. And is included in Box 1, 3, 5, 16, and 18 wages. The value should also be included in Box 12 (Code C).

Charlene's Tip

QuickBooks Online Employee Social Security Deferral Setup:

QuickBooks has updated their payroll system to allow for Employee Social Security Deferrals as outlines in the Presidential Memorandum issued August 8, 2020. As a reminder, this is an optional deferral employers can offer to their employees.

Employers will be responsible to pay back the deferred amounts by April 30, 2021, whether or not they are able to withhold the social security taxes from their employees’ paychecks from January 1, 2021 – April 30, 2021. This means that if your employee quits or is let go, it is up to you to reclaim the deferred Social Security Tax from them and remit it to the IRS.

For step by step instructions, see:

Valerie's Tip

Common Questions answered on changes to the 1099 form for 2020:

What are the changes to 1099 filings for the 2020 tax year?
New for 2020, nonemployee compensation has been removed from 1099-MISC and given its own form, the 1099-NEC. Amounts formerly reported in Box 7 of 1099-MISC in 2019 and prior years should now be reported in Box 1 of 1099-NEC.
The 1099-MISC also has a new payment type called nonqualified deferred compensation, for deferred compensation that does not meet section 409A requirements.

What is the 1099-NEC?
The 1099-NEC form is a new form for reporting nonemployee compensation. If you've reported nonemployee compensation in 1099-MISC Box 7 in previous years, you will now need to use the 1099-NEC form for tax year 2020.

What is the difference between 1099-NEC and 1099-MISC?
The 1099-NEC is specifically for reporting nonemployee compensation, whereas many other types of compensation can be reported on the 1099-MISC.

Candy's Tip

Calculator in QuickBooks:

There are two quick options for calculating in QuickBooks: 

1. On the top bar, click File, click Use Calculator. A calculator window will pop up for you.

2. In the number fields of any transaction, you can do simple math using these symbols (+, -, /, *). Press the = symbol to get the result.

Candy's Tip

Pull QuickBooks Reports into Excel:

QuickBooks has many types of reporting templates that will fit most financial reporting needs and can be printed or saved as PDFs. Another option is to download the reports in to excel. If you are an Excel wiz, this is a great option. Sometimes the bank or your CPA may request the financials in Excel format.

The excel button will be at the top of the report. Click, download, and save.

Tisha's Tip

Search for Transactions in QuickBooks - Desktop & Online

Desktop Tip: Quick and easy way to search for transactions.

Click ‘Edit’ tab at the top Left and click ‘Find’. You can see the filter gives you a bunch of categories to choose from. Most commonly used is the ‘Amount’ that is illustrated below.

QBO Tip: Advanced Search Option to find transactions.

You click on the magnifying glass than click on the ‘Advanced Search’. Your options are endless – the first filter you can select ‘All Transactions’, ‘Check’, ‘Invoice’, ‘Deposit’, ‘Payment’, etc.  The second filter can be ‘Amount’, ‘Invoice’, ‘Memo Description’, etc.

What you’ll get:

Candy's Tip

Keep Your Chart of Accounts Simple

Most accounting software will give you a suggested chart of accounts based on your industry. This is a great place to start. Sometimes the expense accounts can get overwhelmed with too many details.

A rule of thumb to keep the chart of accounts from expanding is to determine how much will be spent in that category. You generally want to use a descriptive account to track larger amounts. If it is as small amount, but you still want to track it separately, create a sub account under the main expense account.

For example, you may want to keep track of different types of Professional Fees. Use Professional Fees as your main account and then create subaccounts like Legal, Consulting, and Accounting.

QuickBooks Tip: If you create sub accounts, you can hide those accounts when you use the collapse feature in reporting.

Candy's Tip

Automate/Memorize Transactions in QuickBooks

If you have reoccurring items, use the memorize transactions function in QuickBooks for quick entry. It is easy to set up and is fully customizable. This function is great for reoccurring bills and invoices.

You can have it set to remind you to enter the bill or invoice. If the amount is the same each period, then set the “Automate Transaction Entry” feature and it will enter it automatically into your books.

You can memorize checks, deposits, invoices and even journal entries. This feature is available in QuickBooks Desktop and QuickBooks Online.

Candy's Tip

Well Defined Bookkeeping Procedures:

Having clearly defined procedures and workflow for the accounting team is vital for keeping the books current and accurate. It is important to have to do lists and bookkeeping procedures. The more organized the bookkeeping processes the better the workflow.

Create a notebook or even better a digital file that lists the step by step instructions and/or to do lists for daily, weekly, monthly, quarterly, and yearly tasks. Use your accounting software to automate some of these tasks and set up reminders.

Pro Tip: Use your digital calendar to set reminders of important due dates and reoccurring tasks.

QB Tip: Use the Reminders and To Dos feature in QuickBooks and customize your tasks. Use the home page visual template as a basis for creating procedures for workflows.

Kennellie's Tip

Separating Business and Personal Expenses:

Co-mingling expenses might not seem like a bad idea, wrong! This can quickly cause huge headaches for your company. Having a dedicated business bank account for checking and savings saves you time when it is time to sum up deductible expenses.

You should get in habit of using different bank accounts for business and personal purchases. If your contributing capital to your business out of your personal assets, make sure you clearly document the contribution.

In general, you cannot deduct personal expenses as a business expense. If you use property both for business and personal use such as car or home office, then the portion of time you use the property for business if deductible. Otherwise, deducting personal expenses on a business is not allowed.

Kennellie's Tip

Keeping Your Records Organized (even those pesky papers!):

Organizing and keeping accounting records like business invoices, receipts, and expenses can help you run your business smoothly.

If you are a fan of keeping paper records:

  • Store them in a secure and safe place.
  • Make sure you keep your paper accounting records organized using different labels, different color of folders and sorting strategies (e.g., chronological order).

If you are not a fan of paper records, go electronic instead:

  • Scan and saved all documents and create a folder for each accounting records as if you are to save them on a paper record.
  • Keep electronic document of accounting information on your devices or in the cloud for safekeeping.

I suggest keeping both a paper and electronic version. That way, you have a backup in case accounting information is destroyed, misplaced, or lost.

Candy's Tip

Review A/R Frequently:

Enter your invoices as close to the time of service or sale of a product. Once you have created the invoice and sent them to your customer it is important to follow up on the payments. Many times, those invoices can get lost in the mail or misplaced.

Collect emails from your customers and send digital copies of the invoices to ensure timely delivery. Check your A/R (Accounts Receivables) weekly and send friendly gentle reminders. It becomes increasingly difficult to collect as time passes on old invoices.

Pro Tip: Offer alternative forms of payment ACH, credit card, Zelle, or Paypal and let your customers know about these quick payment options

QB Tip: If you provide a reoccurring service have your accounting software automatically create the invoice.

Candy's Tip

Keep Your Books Up to Date:

Keeping your books updated close to real time will give you information on how much cash the business has available and if there any fraudulent charges. Entering or downloading bank feeds daily if you have lots of transactions and weekly if your transactions are moderate.

Enter A/R (invoices) as soon as you or the staff provide the services or sells the product and enter A/P (bills) as soon as you receive them to take advantage of discounts for paying early and tracking due date to avoid late fees.

QB Tip: Set up bank feeds so transaction download into your account.

QB Online Tip: QuickBooks online has an option to download transactions automatically with direct bank feeds.

Candy's Tip

Reconcile Your Accounts Monthly:

Review incoming banking and credit card transactions daily or weekly depending on number of transactions. This gives you an opportunity to review bank and credit card transactions for accuracy and catch fraudulent charges in real time or missed deposits due to bank error. If your books match your bank, you can monitor your cash balance and avoid costly bank charges due to bounced checks.

After you have reconciled all the transactions to your monthly statement, it is important to print the reconcile report and review the uncleared transactions. Clean up any old transactions.

Checks that are lost should be cleared out and reissued if necessary. The only items that should be in the uncleared section will be current transactions

QB tip: Use bank feeds and clear transactions for quick reconciles at month end.

Candy's Tip

Use the memo section to take notes for your bookkeeper or accounting professional:

For example, you purchased some desks and you are not sure if it is an expense or asset. No worries. Classify it as “unallocated expense” and write in the memo section “purchased two desks for $200.00 each for the back office”. You got a new loan and the account has not been set up in QuickBooks, but you want to enter it into the books. Put the deposit in “unallocated income” and write “new loan from USABank please set up new account.”

This will save time, and the transactions you are not sure about are all in one place and your bookkeeper won’t have to ask you later about the transaction.

Quick tip:

Not sure how to classify a purchase or deposit “unallocated expenses” or “unallocated income”. let your bookkeeper or accounting professional categorize them correctly.

QB tip:

Attach the receipt or document to the transaction in QuickBooks.

Candy's Tip

Document tracking for 1099 Vendors:

It seems like it is always a mad dash to collect W-9 in January of the filing year. A tip to avoid the stress is to collect the document in real time.

Quick Tip:

Before you cut that check to a service vendor or outside service provider, request a W-9 right away from the vendor. Even if you are not sure, it is always a good practice to request one anyway. And if turns out you do not need a to file 1099 for them it’s good to have that W-9 as a record of not qualifying for filing. You can download a PDF here: and email it to the vendor

QuickBooks Tip: You can attach and store that W-9 digital document in the vendor information in QuickBooks. No separate file system needed!

QuickBooks online Tip: QBO has a feature you can invite contractors to fill out their W-9 and sign them electronically, securely inside their intuit account

Candy's Tip

Use your phone as a document tracker:

It is important to keep track of all receipts.  It is amazing in our high-tech digital world there is still paper documents. We need to have those documents available especially for large purchases.  Getting all receipts digitize can save a lot of time.

Our smart phone has changed our lives. Use that pocket computer to your advantage.

Quick Tip:

Use your phone to take pictures of receipts and checks and any document you think you or your accountant might need as backup and email them to yourself or your bookkeeper.

QuickBooks Online Tip:

Use the QuickBooks mobile app and it automatically uploads the data from your receipt and stores your receipt

Pro Tip: use a mobile app for receipt tracking that automatically

Candy's Tip

Using QuickBooks to store your documents:

If you are digitizing those receipts and other source documents, another place to file them is right in QuickBooks. Whether you are entering or downloading your bank and credit card transactions or creating an invoice each transaction window has an attachment icon button.

Quick Tip:

Keep all receipts and documents in digital format. Request documents to be email for a quick digital copy. Otherwise scan or take a picture as soon as possible. Attach the receipt to a bill, invoice, or check as back up for the purchases.

QuickBooks Tip:

Click on the attachment paper clip icon or drag and drop the receipt or document.