The IRS uses a 1099 form to report various types of income other than wages. The form reports any income over $600 paid to contractors (non-employees), lawyers, single proprietorships, landlords, royalties received, partnerships, and much more. The only non-employee paid out that is not reports using 1099 are corporations.
A tax consultant is a special advisor with expertise in tax law, such as a Certified Public Accountant (CPA), attorney, or an enrolled agent (EA). They provide a range of financial consulting services to businesses to comply with current local, state, and federal tax requirements. Additionally, they use this knowledge to help their clients save money on future returns and business dealings.
Bookkeeping is an essential part of maintaining and growing a business. Detailed records of financial transactions dating back to the first penny spent will allow you to have an accurate benchmark of your company’s revenue and make strategic decisions regarding future income. While you could handle this responsibility, outsourcing this job to a trained accountant often makes more sense.