Checklists > Year-End Checklists

1099's

When it comes to 1099 season, it tends to get hectic fast, especially if you no not prepare yourself ahead of time.

•Update your software
Make sure you are on the latest version of the software.Pak Accounting puts out end of year updates to update tax forms and tax tables so make sure to watch for these notifications. Once you receive the notification that there are release updates, make sure to install these updates. Go to Utilities > Global > WolfePak Download.

•Are you filing Electronically or by paper transmittal?

oIf filing electronically- if this is your first-time filing, make sure you request your TCC code from the IRS in plenty of time. It can take up to 45 days to receive your TCC code. Also, remember if you are filing 1042’s for foreign withholding, you must acquire a separate TCC code from the IRS than the one you use for filing 1099’s. To file for your TCC code, file Form 4419 “Application for Filing Information Returns Electronically (FIRE)”. See IRS.gov for more information.

oIf filing paper- make sure to order your paper forms and envelopes in plenty of time. The PakEnergy Accounting Forms department can help you with anything you need. Contact our Forms Department. today!

oRevenue Owner Tax ID’s
One of the biggest struggles at year-end is making sure that you have Tax ID’s for all of your 1099 Recipients. We all know this can be overwhelming especially if you are paying thousands of owners throughout the year. Pak Accounting has some tools to help you out with this.

•The first tool Pak Accounting provides is the Print Owners with possible problems report. This report prints, if selected, during the Pre-Check reports of each Revenue/Billing cycle. Once you enter the Tax ID into the Sub-Account maintenance > Revenue/Billing tab > General tab > 1099 Options Tax ID, the owner will no longer show on this report. We recommend running this report with your monthly distribution cycle and correcting missing Tax ID’s as soon as possible. Waiting until the end of the year to correct can cause delays as it can take a while to receive this information from the owner.

•The second tool Pak Accounting offers is the TIN matching report that is available during the 1099 process. You do not have to wait until year-end to verify your Tax ID’s through this process. However, you must extract your 1099’s (AP, Rev, or both) before you can create the file. This report will also show you any missing Tax ID’s, which the report does not include in the file created to send to the IRS. TIN matching is designed to enable you to check the TIN (Tax Identification Number) provided by payee against the name/TIN that the IRS database contains PRIOR to filing 1099's. This process helps avoid TIN errors and reduce the number of backup withholding notices, and is a service provided for free by the IRS. See Publication 2108A located at http://www.irs.gov/pub/irs-pdf/p2108a.pdf for complete details.

oPayroll- Social Security numbers:

•This field will print on the TWC quarterly report listing and on the W2's at year-end. If you enter a social security number already in use by another employee, a warning message will appear and you must enter a different social security number (or all zeros) to continue. You can enter zeroes when an employee's SSN has not been received to allow the company to file W2s with the SSA. For employees with zeroes, a warning message will display on the W2 Edit Listing with a message to correct either now or send in a corrected form from the SSA website once the SSN is received.

•Create SSN Verification File- This report will create a file to upload to the Social Security Administration (SSA) Business Services Online (BSO). It allows registered users to verify the names and Social Security Numbers (SSN's) of employees against SSA records.

General Ledger

You may make entries to the new year without closing the old year first.

•Change the Posting Allowed Dates in Company Maintenance to allow entries to be made in the new year.

1.Select Posting Allowed under Master Files Maintenance.

2.Change the Posting Allowed Date to the new year and Save (F10).

a.Single User / Multi-User With No Security

•Simply enter the new date in the "Thru" field for all classes utilized.

•If all users are Class 1 users, then the feature is considered off and uses the one date range set in Posting Allowed.

•Note that you will still see the Class 2 and Class 3 "From" and "Thru" date fields even though they are not being utilized.

- OR -

b.Multi-User With Security Enabled Using All Three Classes

•Contact the system administrator for your organization to initiate the change.

•The system administrator should then change the "Thru" date in each class per company policy in keeping with internal controls.

•Notes:

oBalance forward entries will automatically be generated for the next year. This is a required process, please let it complete before closing the system. The system will automatically maintain balance forwards as new entries are posted to prior years.

oIf you still need to post entries for the prior year, for example, you can enter a beginning date of "12/01/2022" and the ending date as "12/31/2023". This will prevent you from accidentally entering January 2023 entries as January 2022.

oYou cannot open more than 13 months from current system date forward in Posting Allowed date range. You are able to post entries in prior periods, but not forward past 13 months.

Year-End General Ledger Clean Up
Remember, Pak Accounting does not do a hard close at the end of the year. Balances automatically roll forward at the end of the year when the posting allowed date range is changed. Even so, this is still the perfect time to do a little year-end maintenance on your general ledger. Best Practice is to review the following monthly and/or quarterly, but you should at least consider these items at year-end.

•Write Off Bad Debt - Review any outstanding accounts and take the time to write off any bad debt.

•Reconcile A/R and A/P accounts - make sure that all open A/P items are in fact still open and not paid and review A/R balances to ensure correct reporting on taxes.

•Write off penny balances from Unpaid/Unbilled Report – This report is found in Revenue/Billing > Reports > Property > Unpaid/Unbilled. You can also run this report as an option when updating your Revenue/Billing cycles. Penny balances are typically caused from rounding differences in the cycle. Pak Accounting recommends writing these pennies off at the end of the year.

•Write off Penny Balances in Deleted Interest Accounts – Review the Billing and Revenue Deleted Interest accounts and write off any penny balances that sometimes occur due to rounding. Consider researching anything more than a few cents as this could mean you did not bill/pay owners correctly.

•Write off small balances in your Purchaser Clearing account and any other clearing accounts you may use.

•Payroll - Depending on your company's policies, you may want to zero out your sick leave and vacation accrued and/or balance amounts. To zero out you must go to Payroll > Year End > Zero Sick Vacation.

•Revenue/Billing

oReconcile Suspense: Run the Revenue/Billing > Reports > Suspense > Suspense vs. GL Balance report to see if your suspense is in balance. If you are out of balance, this report will help you try to identify the entries that could be causing the issue.

oFlush Suspense: During your last revenue cycle of the year, or if you run a special cycle, use the Flush option on the Revenue/Billing Cycle > Revenue tab. This will automatically pay suspense if it is above your minimum flush amount as set in the Company Maintenance > Pty Susp/Net tab.

oStart Unclaimed Property Process

Resources

•1099/W2 Training Videos- Found in Freshdesk

•Year-End Webinar

•Pak Accounting Splash Screen

•Pak Accounting’s Forms Department

•Your CPA or Tax Accountant