Manual 1099 processes are a drag on client advisory services (CAS). New automation tools can help.

Success in client advisory services (CAS) practices is all about achieving scale through efficiency. Practices that can lean on technology and automation capabilities (especially those that come built into their existing AP solutions) to deliver more services to more clients at the same time are not only able to drive more revenue, they’re also able to spend more time focusing on strategic, higher-value tasks.

Many CAS practices get their start by taking on the types of services that are difficult to scale—highly manual, time-consuming tasks that can devour their professionals’ time day in and day out. Creating and filing 1099s is a prime example of this type of service, for reasons that are familiar to any firm:

• High volume of forms to manage and file

• Complex vendor management

• Tight deadlines and seasonal time crunches

• Coordination among multiple systems

The good news is that each of these challenges is ideally suited to technology-enabled automation. Repetitive, manual tasks are the sweet spot for automation. And new 1099-focused automation features from solution providers like BILL are making it easier than ever for CAS practices to put this new functionality to work to deliver better, more efficient 1099 services to clients.

What could your CAS practice achieve without getting bogged down in these tasks?

If your CAS practice hasn’t kicked the tires of 1099 automation capabilities, it’s time. Especially for firms that already offer 1099 services, and if you’re already using BILL, it’s easy to put the new 1099 capabilities to work. BILL’s powerful 1099 and W-9 storage, input, approval and generation features are worth exploring today. Here are some of the advantages.

• Collect, create and file clients’ 1099s directly from your AP software

• Automation for:

  • Collecting W-9s

  • Designating vendors as 1099-eligible

  • Mapping expenses to the correct 1099 category

  • Generating and filing 1099s

  • Delivering 1099 files to vendors

• Direct delivery of 1099s to the IRS, as well as state and federal tax filings

Achieving scale: What to expect

When you take advantage of BILL’s advanced 1099 and W-9 storage, input, approval and generation capabilities, you can achieve scale through much greater efficiency. But you can do a lot more than that, too. Here’s a closer look at what to expect.

• Deliver more value to more clients without additional resources. Without automation, your firm can only manage 1099s for so many clients, depending on the number of professionals you have on staff and the number of working hours in the day. Plus, 1099 work takes place in an already compressed, deadline-driven month for CAS and accounting professionals. But with automation capabilities built into BILL, your firm can deliver these same services to more clients without hiring extra staff, adding to your team’s workload or relying on yet another software tool in an already-complex tech stack.

• Step up your advisory capabilities. Think about all the time your team sinks into repetitive, technical, highly manual aspects of 1099 management, even if it’s using a third-party 1099 platform. Now imagine what they could do in all the time they would save by assigning many of those tasks to automation capabilities built into your core technology already in use. Focusing on more strategic, higher-value client issues— helping optimize clients’ business practices, better manage their contractor relationships, and more—is a huge opportunity enabled by automation.

• Offer clients more options for 1099 services. Tiered service packages give clients more choice and a greater ability to tailor your services to their individual needs. With automation, it’s much easier to configure these packages and deliver on them. For example, when new vendors are using BILL to onboard and fill out a W-9 already stored in BILL, all the information the team needs at year-end is already there, an important time-saver in recurring fee/subscription based 1099 services.

  Some clients only need basic 1099 management; others have more complex needs. When you’re able to deliver at scale, you can better meet all their needs.

• Deliver value year-round, not just during crunch time. Collecting W-9 information and tracking cash flow routinely throughout the year is a best practice for CAS practices; but in reality, these activities are often delayed until year-end, making for a painful, stressful January pile-up. With automation tools, firms can smooth out this process significantly. By providing clients with ongoing monitoring and advice on 1099 issues, you can offer value all year long and help everyone avoid any last-minute surprises at the end of the year.

Now is the time

CAS practices of all sizes are evaluating opportunities to use automation capabilities to streamline and accelerate 1099 service delivery. BILL solutions are well positioned to help because they’re already part of a system where all payments are disbursed for clients.

BILL is the leading payment automation platform for small and medium-sized businesses, and their constantly evolving platform is now able to take on the time-intensive processes involved in organizing, issuing and submitting W-9s and 1099s.

Be sure to check out BILL’s recent blog post on the opportunities that come with automated 1099s.