Ask the Expert - Mid Year Conversion for 1099s - Accounting Software Secrets
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Ask the Expert – Mid Year Conversion for 1099s

Ask the Expert – Mid Year Conversion for 1099s

Ask the Expert – Mid Year Conversion for 1099s

Q – We converted to QuickBooks at the start of our fiscal year (June 1) and I have a problem with the 1099s. When I go to the 1099 summary report, it does not show anything. What am I missing? Also, how do I adjust the amounts on the form at the end of the year for what was paid prior to switching to QuickBooks?

A – There are two issues you need to consider. The first is true for anyone using QuickBooks to generate Form 1099s. The second is specific to those users who convert to QuickBooks mid-year.

To handle the problem with information not showing on the report, it sounds like the 1099 preference and related vendor set up has not been completed. For a complete description of how with works, go to our October QuickBooks Tips and Tricks – 1099 Prep Work article on the subject.

Here is one way to handle the set up of the expenses paid to independent contractors without entering all the checks again.


  1. Create a new bank account and call it “1099 clearing.”
  2. Enter the amount paid to the vendor as a check coded to the appropriate 1099 account.  This information should be calculated from the prior bookkeeping system (i.e. a report if software was used for the time period, or manually if appropriate).
  3. Enter a deposit without the vendor name to the same account. The net effect is to increase the payments recognized by the system for 1099 purposes to the specific vendor, but not affect the general ledger in total.
  4. Once the data entry has been completed the net balance in the new bank account should be zero so the account can be made inactive.



More information on this topic

Year End Issues

Form 1099