Tax Season Blues
For most of us, most of the time, the holidays at the end of the year are a season of good cheer, family, and hopeful dreams for the New Year. I am always bothered by the fact that the next thing you are slapped with is taxes. Couldn’t they find a better time to assess taxes? Perhaps May, or June, by that time your year is either going well enough that you can stomach the tax challenge, or it is looking so bad you have worked up bad mood that matches the thrill of filing taxes. Sadly, the reality is we have to attack them head on, or face the consequences – fines.
While doing the research for this blog article, I was more than a little surprised by the severity of the fines imposed for things like 1099’s. Not just for filing them late, but also for adjustments. Therefore, not only do you have to be on time, you must be accurate or face fines. The fines are not exactly cheap. If you make corrections within 30 days, it is $15 per 1099. Between April 1 and August 1, that goes up to $30 per 1099, and after August 1, it is $50 per 1099! Depending on the size of your brokerage, and the number of carriers you deal with on an annual basis, this could get to be quite an expense.
Taxes are certainly another instance when having a reliable, complete, and integrated brokerage system can save you time and money, and provide peace of mind. Whether you are trying to manage your business accounting manually or on spreadsheets, this type of itemization and report building is an enormous investment in time, and the result may be riddled with errors in data entry or incorrect calculations.
There are several stand-alone accounting solutions available which help, but for a freight brokerage, this means re-entering information into each separate module and risking data entry errors in each shipment’s entries. TruckMaster’s freight brokerage solution provides single entry, easy to follow data flow. You never have to enter the same data twice. Your 1099 forms are simply printed and ready to send. This means there is very little extra work at year-end, and no worries.
If you have found yourself stressed over filing tax forms this year, perhaps it is time to take a look at what TruckMaster’s Freight Brokerage software can do for you.
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