For many service-based businesses, the busiest part of the year isn’t just finishing client work. It’s figuring out who you paid, how much you paid them, and whether your records are ready for year-end reporting.
If you’ve hired subcontractors, freelance designers, consultants, cleaners, or other independent service providers, now’s a good time to review those payments. Waiting until January can turn a simple records check into a last-minute scramble for paperwork.
Start with your vendor list
Review the people and businesses you paid this year. Make sure each vendor is set up consistently in your bookkeeping system, with a clear name and contact information. If you find duplicates or vague entries like “John’s work,” clean those up while the details are still fresh.
Check for missing tax forms
If you may need to report payments to a vendor, make sure you have the appropriate tax information on file. A completed Form W-9 can help you confirm the vendor’s legal name and taxpayer information. It’s much easier to request missing paperwork now than to track someone down after the holidays.
Review how you paid them
Look at the payment details and keep them organized by vendor. Different payment methods can have different reporting considerations, so don’t assume every payment should be treated the same way. Your tax professional can help determine which payments need to be reported and what rules apply to your business.
Don’t forget the bookkeeping side
Check that contractor expenses are recorded in the right accounts and that the amounts in your books agree with your payment records. If something doesn’t match, investigate it before year-end rather than letting it become a January mystery.
A little preparation now can make year-end reporting smoother for you, your bookkeeper, and your tax professional. Reporting rules can vary, so check with your tax professional about your specific situation.
Need help sorting out contractor records before the year ends? JPC Bookkeeping can help you get your books organized and ready for the next step.