Sage 100 & Tax Season Preparation: Staying Compliant

Posted by Bennett/Porter & Associates on November 2, 2023 at 7:00 AM

As the end of 2023 marches closer and closer, businesses across the country are gearing up for tax season. For Sage 100 users, this can be a seamless and efficient process with the right preparation and knowledge. In this comprehensive guide, we'll walk you through the steps and best practices to ensure your business stays compliant and ready for tax season.


Step 1: Review Your Financial Data

Before diving into tax season preparations, it's crucial to have an accurate overview of your financial data within Sage 100. Start by reviewing your income statements, balance sheets, and profit and loss reports. Ensure that all transactions are up to date and that all Daily Transaction Registers have been updated. If possible, have a detailed listing of what items make up the balance of your Balance Sheet accounts, and make sure that the Bank Reconciliation(s) ties out to the General Ledger balances for your checking account(s).

Step 2: Update Vendor

Check your vendor records for noting the correct 1099 Forms for your Vendors (MISC, NEC, Interest, Dividend) and have the correct boxes selected on the Form as well. Make sure all contact information is current and review your AP Check History Reports to help tie out your 1099 amounts.

Step 3: Verify Payroll Data

If you use the Sage 100 Payroll module, verify that your Year to Date Data is accurate by using the Quarterly Reports that is under the Reports Menu in Payroll. Ensure that all employee information, including names, addresses, and social security numbers, are up to date. Total and compare the 4 filed Quarterly Tax Reports to the W-2's prior to printing and filing them.

Step 4: Gather Required Documents

Compile all necessary documents for tax filing. This may include validating 1099 Social Security or Tax ID’s to the Vendor 1099s. While Sage 100 provides tools to generate and print these forms, it is still a good idea to review the Tax ID’s to make sure they are correct.

Step 5: Run Trial Balances

Before finalizing your tax reports, run a Year to Date trial balance in the Reports menu for the General Ledger to ensure your financials are in balance.. This step helps catch any discrepancies or errors that may have been missed earlier. 

Step 6: Generate AR and AP Aged Invoice Reports or Trial Balance Reports

Make sure that your Accounts Receivable Aging report and your Accounts Payable Aging report tie out to the balance sheets accounts for AR and AP. If the Aging reports in either module doesn’t match the General Ledger, try running the AR Trial Balance Report (from the Reports menu) instead or the AP Trial Balance Report to see if those reports tie out to the General Ledger. The Aged Invoice report in each module is based on date, and not on the General Ledger period the invoice was updated to, while the Trial Balance Report is based on the General Ledger period posted to instead.

Step 7: Do you have the Sage Inventory Module?

Very much like the AR and AP Trial Balance reports, there is an Inventory Trial Balance report that can be run to validate the Inventory Balance sheet account. The Inventory in Sage 100 is live and on-line (meaning you can’t print a valuation report for say, September 30th at this point in time), but the Trial Balance Report lets you print as of a specific period end date. It is also a good idea to tie out the Purchase Order Clearing account to match the PO Clearing account on the Balance Sheet now. Often, folks just miss putting an Invoice Number on a Receipt of Goods in the Purchaser Order module, and that causes the PO Clearing account in the General Ledger to be increased, when in reality, it should have been the AP account that increased.

Step 8: Perform a Data Backup

Before making any changes or updates for tax season, perform a data backup within Sage 100. This precautionary step ensures that your financial data is safe and can be restored in case of any unexpected issues.

As year end approaches, the importance of being prepared cannot be overstated. With Sage 100 by your side, you have a powerful tool to help streamline the process. By following the steps and best practices outlined in this guide, you can ensure that your business stays compliant and ready for tax season.

Remember, you don't have to go through this journey alone. At Bennett/Porter, we understand the complexities of end-of-year compliances and the significance of accurate financial reporting. Our team of experts is here to assist you every step of the way. Whether you need guidance on reporting, compliance, or navigating Sage 100's features, we're just a call away. Your success is our priority, and we're dedicated to helping your business thrive during year end and beyond.

Don't hesitate to reach out to us for support, and let's make this year end a smooth and compliant experience. Together, we can ensure your business's financial health and success.


Topics: People. Ideas. Technology., Human Resources, HR Compliance, HR, PeopleSavvy

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