Finance & Enjoyment Blog

January In A CPA Office

January in a public accounting office can be argued as the second busiest month of the year. For tax preparation, March is considered the busiest by far, but since April only consists of a half-month of tax work and February typically is more of a lead-in to March, January is the next in line for busiest. This is due to the particular deadlines January features – namely W2s and 1099s.

W2s are only difficult when it involves large companies with many different benefits. Certain items such as 401k deferrals are deducted from gross wages while things such as health insurance for small business owners are added to wages. Also, since all payroll runs through software now, it's as simple as printing out the forms and verifying the data.

1099S, on the other hand, are the bane of all accountants. Many are actually not offering the service anymore due to cost limitations. There is just too much work involved, and it typically leads to a loss for the firm. There is a general ledger review to identify the vendors that qualify for 1099s, then having to track down the vendor's information. For large companies, this work can last for multiple days. If it wasn't for 1099s, January in a public accounting office would not be so bad, but alas, February 1st is always a welcome sight.

Posted in Successful Practice Management »

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