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Introduction

This case study highlights how Tax1099 created a valuable solution for a leading non-profit bookkeeping firm.

For over 30 years, Bookminders has been a trusted provider of timely, accurate, and cost-effective bookkeeping services for nonprofits, governmental entities, and complex businesses. As the company grew, managing the increasing number of 1099 filings manually became a significant challenge. To streamline this process, Bookminders sought a reliable third-party platform and found Tax1099 to be the perfect fit. Since adopting Tax1099, Bookminders has efficiently handled thousands of 1099 filings each tax season, ensuring compliance and saving valuable time.

Client Background

Bookminders is a Pittsburgh-headquartered company providing outsourced accounting and bookkeeping services for medium to large-sized businesses and nonprofit organizations, using a home-based workforce. They were recognized as Pittsburgh's 100 Fastest Growing Private Companies by the Pittsburgh Business Times in 1997, 1998, 2000, 2001, 2002, 2003, and 2004. CEO Jessica Minkus was named the Pittsburgh Post-Gazette's Top Leader in the Top Workplaces Awards in both 2022 and 2024. She was honored by Smart Business Magazine's Smart 50 Awards and the Pittsburgh Business Times's C-Suite Awards in 2023.

Challenges Faced Prior to Using Tax1099

The firm faced the following key challenges:

High Manual Workload

The process of printing, stamping, and posting thousands of 1099 forms each year was labor-intensive and time-consuming.

Complex Reconciliation

With thousands of transactions to reconcile, especially across multiple clients and vendors, keeping track of accurate filings became an arduous task.

Error Detection

Manual process made it difficult to spot errors, increasing the risk of compliance issues.

Time-Consuming

Preparing and filing all forms manually required long hours, especially during the peak tax season, leading to employee overtime.

Resource Allocation

With a large client base, there was a need for a more centralized and streamlined solution to allow accountants to focus on data accuracy rather than logistics and document processing.

Lack of Real-time Visibility

The firm had limited ability to monitor the filing status of forms in real time, making it hard to track progress, identify incomplete filings, and manage updates.

Discovery of Tax1099

In 2017, Bookminders discovered Tax1099, an innovative cloud-based solution designed to streamline the 1099 filing process. This discovery marked a significant turning point for the firm, as it transitioned from traditional, paper-based methods to a more efficient, automated system. The adoption of Tax1099 not only simplified the 1099 filing process but also enhanced overall organizational efficiency by reducing the reliance on paper and manual administrative tasks. This change led to a more organized and less cumbersome workflow, ultimately improving productivity and accuracy in 1099 filings.

Solution Provided by Tax1099

The key benefits realized by Bookminders after using Tax1099 include:

Automation of 1099 Filing

Tax 1099 allowed Bookminders to electronically file 1099 forms and come up with the form on its own without requiring actual printing, mailing. Users can also do bulk upload from accounting software including QuickBooks that works synchronously with the software

Real-Time Error Checking

One of the most valuable features of Tax1099 for Bookminders was the built-in error checking system. As forms were being prepared, the platform highlighted potential discrepancies, helping Bookminders avoid costly mistakes and stay compliant with federal and state requirements.

eFiling and eDelivery

Tax1099 supports electronic filing (e-filing) and electronic delivery (e-delivery) of 1099 forms to recipients. This paperless solution eliminated the need for postage and the labor-intensive task of stuffing envelopes, saving time and reducing manual labor costs.

Time Savings and Efficiency

By centralizing the process and automating document distribution, Bookminders was able to complete their filings days before the deadline. The firm reduced the amount of time spent on 1099 processing and eliminated stress associated with last-minute filings.

Dedicated Team for 1099 Filings

Bookminders established a dedicated team of accountants responsible for preparing data and uploading it to Tax1099. This allowed the rest of the firm to focus on client relationships, further improving productivity.

Impact of Transition

Originally, the accountants at Bookminders experienced significant organizational problems and pressure during the tax season. While adopting Tax1099, the environment of late filings and overwhelming manual work was alleviated and the amount of time on such tasks was minimized at the firm.

The accounts were also better tracked and reported because of Tax1099’s centralized dashboard. The real time tracking system ensured that progress was displayed, hence the accounting team could easily deal with problems as they arose.

Results Achieved

The impact of Tax1099 on Bookminders' operations can be measured in several key areas:

Multi-user
Labour Cost Savings

Fewer employees are needed to handle the same workload. The firm reduced the number of people involved in 1099 filing process from 8 to 3-4, achieving significant operational efficiencies.

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Reduction in Errors

With Tax1099’s real-time validation checks, Bookminders was able to significantly reduce human errors that often occurred in the manual filing process.

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Increased Speed

Bookminders was able to process and file 1099 forms within a shorter time with improved efficiency. Previously, employees would work long hours, especially during the peak season, but now, they can focus on more strategic tasks, finishing filings well before the deadlines.

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Streamlined Workflow

Instead of having multiple employees manually inputting data and managing logistics, Bookminders centralized the 1099 filing process. This not only saved time but also created a smoother workflow across teams.

Conclusion

The incongruity between Bookminders and Tax1099 has had a great impact for the firm. By adopting Tax1099, Bookminders achieved:

  • Increased operational efficiency
  • Reduced manual labor and human error
  • Streamlined the entire 1099 filing process
  • Saved time, which could be better allocated to client relationships and tax compliance
  • Enhanced user experience with easy-to-use software and excellent customer support

The integration of Tax1099 into their operations has allowed Bookminders to meet the demands of their ever growing clientele without compromising on quality, thereby setting the business up for future growth.

Specifically for big companies that prepare hundreds of 1099s like Bookminders, Tax1099 provides the right tool that would have made tax filing less of a problem.

Dan Gertrude

“Having a program that is helping us spot errors is really helpful; the ability to get through the filings with so many clients and employees was amazing. We did everything two days prior to the deadline, and it has just been transformed into well-oiled machinery. Yes, there is a lot of support, and the system just gets better and better.”

Jessica Minkus
CEO
Bookminders
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Note:This coupon is exclusive to new users and valid only for today!

Note:This coupon is exclusive to new users and valid only for today!

Note:This coupon is exclusive to new users and valid only for today!