January 31 is fast approaching, and the time to file your 1099 forms is here. However, many real estate agencies and brokers are in a fix and confused with so many details and information.

No doubt, processing and filling out 1099 forms can be a challenge. It is pretty easy to lose your way and miss the deadline set by the IRS. Unfortunately, that can invite trouble and a penalty at least!

As a result, you should be prepared to handle your 1099 processes with the right approach. In this blog, we will explore how technology can go a long way to ease the process of filing your 1099s.

Businesses need to comply with IRS regulations. One of them is to send a 1099 form to any non-employee whom you pay during the course of the year.

Additionally, you have to send one copy of the form to the payee and one to IRS.

Now, there are several nuances that dictate the filling of 1099 forms. For example, only non-employees that receive an amount of more than $600 should get a 1099 form.

Your vendors will rely on your 1099 copies to report their income to the IRS. As a result, it is an important document for you and your stakeholders.

Filing 1099 forms is not an easy task. If you lack a standard process, you can run into confusion and miss out on reporting vital information.

Here are a few difficulties that realtors face while going about form 1099s:

You have to report every single eligible payment you make to vendors in form 1099s. However, that is often not possible as businesses lack complete visibility into payments.

The time taken by contractors to send their invoices complicates the filling of 1099 forms. You can even forget to include an expense if your vendors don’t send their bills on time.

Most brokers and agencies don’t have a centralized way to track 1099 payments. They don’t know which of their payments are eligible for 1099 forms. As a result, you can make any accurate forecasts or informed decisions.

There are multiple types of 1099 forms, like 1099-MISC and 1099 NEC. You have to use the right form for each vendor or non-employee. Often, it becomes difficult to understand which form you should use.

Real estate agencies can leverage technology to eliminate the challenges of filling 1099 forms. It is not uncommon to come across property management solutions that allow you to fill in tax forms.

For example, MRI and Yardi are two leading platforms that come with 1099 processing. You can automate the laborious process to save time and unnecessary effort.

Moreover, you can:

●  Mark your vendors that are eligible to receive 1099 forms. It is as easy as checking a box with a mouse click to create your database of 1099 vendors.

●  Link your 1099 payments to your general ledger. As a result, you can match your books quickly and with less effort.

●  Fill out applicable 1099 forms for each vendor automatically. There is no need to comb your accounts payable to find how much you paid and when.

●  Process 1099 forms for payments made to vendors, suppliers, and non-employees. You can also automate the filling of information for lawyers and service providers.

●  Generate preview reports on the fly with the click of a button. There is no need to create spreadsheets that take time and leave room for errors.

●  Edit, change, or override 1099 amounts in your system. All it takes is a few clicks and entering the updated amounts.

Best of all, you can generate your 1099 forms electronically to send to the IRS and vendors. You can even take a printout of the form without even entering any information manually. MRI or Yardi can work wonders to make your end of the year less stressful. You can automate the time-consuming process of filing 1099 forms and achieve more efficiency.

In addition, you can be sure of your data and 100% accuracy. Therefore, you can rule out requests from vendors to correct your forms and send updated copies to the IRS.

Most importantly, you can track each of your 1099 vendors and payments in real-time. As a result, you gain complete visibility into your reportable payments and overall accounts payable.

1099 forms can be a drag to fill. You can risk missing out on payments and reporting the wrong information. In addition, you need to invest time and effort to complete the whole process.

We can help you use the right property management platform and ease your filing process. You can save time, costs, and the trouble to manually fill your 1099 forms. In addition, you can put your confidence in your data as it’s 100% accurate.