Navigating Tax Season: Accounting Best Practices for the Convenience Ecosystem

by Allison Joy

Tax season can be a daunting time for businesses, especially in the convenience ecosystem where transactions are frequent and varied. However, this time doesn’t have to be synonymous with stress.

With deadlines looming and regulations evolving, it’s important to stay ahead of the game. By being proactive and staying informed, you can streamline your tax filing process and avoid last-minute scrambles.

To help you prepare, here are a few best-practice accounting tips for 2024, aimed at reducing hassle and ensuring timely filing with the IRS.

1. Simplify the process

Here are a few tips to streamline filing:

  • Verify 1099 requirements: Identify which vendors and customers will require 1099 forms and ensure their relevant tax information is accurately recorded in PDI Enterprise.
  • Stay up to date: Regularly check the IRS website for any updates or changes that could impact your business. This proactive approach helps ensure you’re always aware of any regulatory shifts.
  • Upgrade your software: Upgrade to the Year End version of PDI Enterprise as soon as it’s available, typically toward the end of November or early December. This version is tailored for year-end processes, making tax filing smoother.

2. Create a backup plan

Don’t leave anything to chance and make sure you’ve considered multiple scenarios:

  • Prepare for extensions: In case of unforeseen circumstances, such as turnover in the accounting department, familiarize yourself with alternative options like filing extensions offered by the IRS.
  • Utilize the IRIS system: If necessary, utilize the alternate IRS online filing system (IRIS) to upload 1099s. While PDI Enterprise is geared toward e-filing with the FIRE system, IRIS provides a backup option for manual entry and .csv file importing.
  • Update your training and documentation: Ensure you’ve trained multiple team members to file with the IRS and access vital tax information. Consider enrolling in courses like those offered by PDI University to keep everyone’s skills sharp.

3. Learn from experience

One of the most important tips is continuing to build your knowledge base:

  • Share lessons learned: Reflect on past filing experiences and share your own insights with your peers on PDI Connections online forums. Collaboration and shared learnings can help improve processes for everyone involved.

Don’t wait to get started

Tax season doesn’t have to be a source of dread. By following these best practices and lessons learned, businesses in the convenience ecosystem can navigate the complexities of tax filing with confidence.

Stay proactive, stay informed, and always have a backup plan—and remember that PDI can help you file correctly and on time.

In the meantime, here are some additional helpful links:

Position your business for continued success

By “Connecting Convenience” across the industry ecosystem, PDI can help you and your business succeed throughout the year. Contact us today to learn how we can help you transform your business.