Feb 4, 2021 Meeting Notes
/Thank you to all who show up and participate - you get out what you put in with this organization!
Pdx Woodard group next meeting is Mon 8th - Steve Pipe - our time to rise 11:30-1, free but need to register
Next event for us is Happy Hour Thur 18 4-5
March luncheon is March 4 topic is Bookkeeping Best Practices
Open Discussion
How do you keep track of your 1099 process??
Lots are using google sheets
What is your process for W9’s?
I’ve learned this past year about some changes I want to make going forward - namely collecting W9s and processing 1099s will have a separate engagement. Clients need to let me know by 12/15 if you want to me to process 1099s. Each month when they get their financial statements they will get a list of vendors that will need w9s - the goal is to have the clients be responsible.
Pricing option for 1099s:
$80 for doing 1099s, $10 per form
$175-200 per average (less than 15)
Cpas can charge $200-$250 per 1099
124 1099s for $1500 (180 per hour)
By the hour in 3 min increments! ($100 per hour)
Some CPAS say “Have your bookkeeper do it, they will charge less!” However, just because someone has less letters after their name does it mean that its has less value to the clients?
Can give client options -
I can train you how to do this, my recommended software charges $5 per
You can pay me at $XXX (a lot of clients will chose to do themselves)
Example: IRS fined one company $19,000 due to incorrect 1099s (Real estate for brokers, used different eins and such, all incorrect) Best to have someone who knows what they are doing it handle it, and a good reminder for those clients who may balk at your 1099 processing fees!
Consensus is that clients don’t know how to fill out w9s
Tip - Software may be down at some point the last 5 days of Jan, try and get everything in before then
Tip- To capture tax expenses that are on a personal account, export whole year then sort by vendor
PPP Forgiveness - How do we present to CPAs expenses that were part of this forgiveness so that they are not taxed?
Most CPAs are attuned to this they will be on the lookout
What would tax preparers like to see by bookkeepers regarding PPP?
Access to everything, information on how things have been handled so far
Relationship between client and bookkeeper and tax preparer. Try to make it so that you don’t have to go through the client, they often don’t understand the question, etc.
Look at loan amount, look at payroll amount, look at usage period(payroll usually makes up 99% of that)
Hopefully tax preparers will look at bucket amounts and see what is best for tax breaks
Ppp loan - liability? No expenses to offset it
When forgiving - move to other income or create “PPP forgiveness account”
Instead of being a wash new rule, now you can deduct expenses, and also not include income
Look into if your clients have a Paypal personal vs business account - Paypal may close your account if you are using it incorrectly against terms of service. There is also better disputing for business accounts with payment processing.