It’s that time of year…time to prepare your church for the end of year accounting tasks. Take the time to prepare now so you’re not caught off guard.
1. Check your paperwork
Ensure you have all your invoices, receipts, purchase orders, payroll records, and bank statements on file. I prefer a paperless environment. You can do this easily with a smartphone camera and a cloud-based file system like Google Docs or Dropbox.
2. Update Your Financials
If you don’t do it every month, make sure your financial statements are in order, so you can easily send them to your CPA in January. If you need help on the cleanup side, call us at 303-324-2021 or visit our church accounting website.
3. Prepare your 1099 Vendor List
This oft-forgotten tasks leads to needless headaches, fines, and missed deadlines for churches. Send 1099-MISC forms to all your vendors by February 2, 2015. The IRS requires you to send one to any sole proprietor or LLC you pay $600 or more in the calendar year for “rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate”.
The 1099-MISC form can be found here.
We hope you have a headache-free end of the year accounting experience in your church. If you need any assistance please visit our website, Empower Accounting, and we will be happy to work with you church.