With 2023 coming to a close, year-end tasks are also swiftly approaching. Get a jump on 2024 by reviewing the recommended year-end procedures! As always, look no further than our Knowledge Base and Help topics to guide you through the process.
Knowledge Base Article R10429, “Year-End Overviews for Tabs3 Software Products,” includes links to KB articles that provide checklists and frequently asked questions. The types of questions found in each year-end article are outlined below:
Tabs3 Billing – R11693
- Retaining Previous Year’s Information
- Next Year’s Entries
- GL Integration
Tabs3 Trust Accounting – R10433
- Bank Account Reconciliation
- Reports
- 1099s, including E-file
- GL Integration
Tabs3 Accounts Payable – R11278
- Checks
- Void Posted Checks
- Reports
- 1099s, including E-file
- Deleting Vendors
- GL Integration
Tabs3 General Ledger – R11600
- Advancing the Year
- Reports
Lists of basic year-end procedures are also available in Help for each Tabs3 Software application. Simply enter the keyword “year-end” on the Index tab to display the year-end procedures Help topic.
Tax time is stressful for everyone, but especially for businesses. Tabs3 Software has partnered with Nelco® to provide Tabs3 E-file, a complete solution to filing your 1099-MISC, 1099-NEC, and 1096 forms. You don’t need to deal with the forms, envelopes and postage, or configuring your printer at your office; instead, simply upload your data to the Tabs3 E-file portal and they can be electronically filed, printed and mailed, or emailed on your behalf, saving you time and manpower every year.
To transmit Form 1099-Misc and Form 1099-NEC to the Tabs3 E-file portal
- From the Accounts Payable Quick Launch, search for and select “Tabs3 1099 E-file.”
- Optionally enter a Minimum YTD Amount other than 600.
- In the Trust Transactions section, optionally select Merge transactions where Firm is the payer and/or Include transactions where Trust Account is the payer. (Note: Tabs3 E-file can also be started from Tabs3 Trust Accounting, with similar options.)
- Click Transmit.
- Log in with your Tabs3 E-file account information.
- In the Forms in Progress section, select the desired options and click Next.
- Verify your information is correct and click Next.
- Enter your payment information and click the Pay & Submit button.
Prefer not to use the Tabs3 E-file portal? No problem!
Tabs3 Accounts Payable (AP) and Tabs3 Trust Accounting (Trust) allow you to view 1099 information on reports, print Form 1099-MISC or Form 1099-NEC for filing, or create a 1099 Disk File which can be used to electronically file with the IRS. Using both AP and Trust together allows you to create a combined file by merging your Trust data into AP to run one set of 1099 forms or create a single electronic file.
Continuous 1099 Forms can be ordered directly from the IRS. However, for laser printer forms, we recommend ordering 1099 forms from Nelco. These forms are guaranteed to be 100% compatible with AP and Trust. Likewise, you can order W-2 Wage and Tax Statement laser forms from Nelco. Now is a good time to take inventory of your 1099 forms, AP checks, and Trust checks so you can order them all at the same time! Nelco has over 50 years of experience in the business forms industry. Order today by calling 1-800-266-4669 or visiting nelcosolutions.com/Tabs3.
I noticed I have a balance being carried forward from the Prior Fiscal Year in my Retained Earnings account. This is making the figures on my Balance Sheet not match the YTD Net Profit/Loss on my Income statement. How do I correct this?
The most common reason for this to occur is that the Retained Earnings account was not closed out at the end of the year. Many firms choose to enter a manual journal entry for the last day of their fiscal year to bring the Retained Earnings balance to zero; however, this is not required.
For more information, refer to Knowledge Base Article R11590, “All About Retained Earnings.”
I’d like to see a list of the top 20 clients for hours worked in 2022. Is there a report for that?
Tabs3 Billing has a Top Client Report, which provides the ability to rank clients or matters based on different criteria. This report shows the top hours worked, WIP figures, billed figures, paid figures, and more.
To print the top 20 clients for billed fees
- In the Quick Launch, search for and select “Top Client Report.”
- Leave the Client ID range blank.
- On the Options tab:
- In the Print section, in the Top field, enter “20” and then select Clients.
- In the Ranked by field, select All Hours Worked.
- In the Period section, in the Date field, select Current Calendar Year.
- Click OK.
We need a list of all payments to our firm from trust accounts in the last year. Which report should I run for this?
The Check Register by Payee can be used to print a list of checks written to any payee for any date range.
To print a Check Register by Payee for firm payments
- In the Quick Launch, search for and select “Check Register by Payee.”
- On the Transactions tab, enter the desired Date range.
- On the Options tab, select a Payee range of “FIRM” Thru “FIRM”.
- Select any additional criteria.
- Click OK.
We have an invoice that should not be included in a vendor’s 1099 totals. Is there a way to exclude this amount?
The Exclude from 1099 Reporting check box in Invoice/Manual Check Entry provides the ability to do just that. This check box can be selected or cleared at any point, even if the invoice has been posted to Tabs3 General Ledger.
To exclude an invoice from a Vendor’s 1099 form
- In the Quick Launch, search for and select “Invoice/Manual Check Entry.”
- Select the desired Vendor.
- Select the desired Reference number.
- In the Payment Information section, select the Exclude from 1099 Reporting check box.
- Press Ctrl+S.
Note: The Exclude from 1099 Reporting check box will not be available if the vendor is a miscellaneous vendor or does not have a box specified for the 1099 Info field.
I’ve completed reviewing the books for the previous fiscal year and am ready to close them. Is there a way to prevent users from posting or editing journal records for the previous year?
Once you are certain that no additional changes will be needed, you can update the Date through which books are closed setting. Once this value is updated, no additional changes can be made prior to the specified date.
To change the Date through which books are closed
- From the Quick Launch, search for and select “Edit GLS Client.”
- In the Journal Entry Date Restrictions section, specify the new value for the Date through which books are closed.
- Press Ctrl+S.
- Close the Edit GLS Client window.
Note: No user, regardless of assigned access profile or manager status, can make changes prior to the specified Date through which books are closed.
It’s officially a new year! In the fuss of all your regular year-end tasks, don’t forget to review these sometimes overlooked items: Timekeeper Rates, Timekeeper Profitability Figures, Client and Task Based Billing Budgets, and General Ledger Budgets!
Timekeeper Rates
It’s a new year and you want to increase your timekeeper rates, but how can you make the change happen for all applicable timekeepers on a specific date?
Tabs3 Billing makes it easy to seamlessly update timekeeper rates. You can specify the new rates and the effective date for the change, and the software will then automatically use the new rates for any applicable fees saved for that date or later. Transactions entered for a prior date will use the old rates.
To easily determine current timekeeper rates, run the Timekeeper List (From the Quick Launch, search for and select “Timekeeper List”).
To update rates and set an effective date for the new rates
- In the Quick Launch, search for and select “Timekeeper Information.”
- Select the desired Timekeeper.
- In the Effective Date of New Rates field, enter the date when you want the new rates to take effect.
- In the New Rate 1-6 fields, enter the new rate(s).
- Press Ctrl+S.
Tip: Once you are certain fees will not be entered for dates prior to the new rates, use the Move Rates button in the Timekeeper file to easily move rates from the New Rate 1-6 fields to the Hourly Rate 1-6 fields.
If any time was entered with old timekeeper rates prior to updating the Effective Date of New Rates and New Rate fields, and the transactions are still in work-in-process, you can use Change WIP Transactions (In the Quick Launch, search for and select “Change WIP Transactions”) to change transactions all at once. (Note: Because Change WIP Transactions can make changes to a large number of transactions in the software at one time, we strongly recommend making a backup prior to using this program.)
Timekeeper Overhead
If you run the Timekeeper Profitability Report, or you plan to start, you may want to review and update the profitability figures (overhead) set up for each timekeeper. Firms typically update a timekeeper’s overhead when their salary or benefits, such as insurance, change. These figures can be used by the Timekeeper Profitability Report to determine a timekeeper’s realized profit.
To easily determine current timekeeper overhead, run the Timekeeper List (From the Quick Launch, search for and select “Timekeeper List”), making sure to select the Overhead Amounts check box.
To update a timekeeper’s overhead
- In the Quick Launch, search for and select “Timekeeper Information.”
- Select the desired Timekeeper.
- Click the Profitability button.
- From here, you can manually enter each month’s Overhead figures, or click the Allocate button to open the Overhead Allocation Window and allocate the timekeeper’s overhead amounts to all 12 months at once.
- Click OK.
- Press Ctrl+S.
Tabs3 Budgets
Now that your firm’s timekeepers are squared away, consider reevaluating any budgets you currently have set up for your clients and adjust as necessary.
Client Budgets
Setting up client budgets, and keeping them updated, helps ensure you are not spending more time than desired on a client’s matter. You can optionally select to display a warning when a fee or cost transaction is added if the budgeted hours or amount for the client has been exceeded.
To easily determine current budgets set up for each client, run the Client Budget Report (In the Quick Launch, search for and select “Client Budget Report”).
To update a client’s budget
- In the Quick Launch, search for and select “Client Information.”
- Select the desired client.
- On the Budget tab, make any desired changes to the Budget section.
- Press Ctrl+S.
Task Based Billing Budgets
Like client budgets, it is a good idea to review how much you have budgeted for task based billing clients’ activities and expenses. You can optionally display a budget exceeded warning when more than the amount entered for the phase or task is saved.
To easily determine current task based billing budgets for each client, run the Task Code Budget Report (From the Quick Launch, search for and select “Task Code Budget Report”).
To update a client’s task based billing budget
- In the Quick Launch, search for and select “Client Information.”
- Select the desired client.
- On the Budget tab, in the Task Based Billing section, click the Budget button.
- Make any desired changes and click OK.
- Press Ctrl+S.
General Ledger Budgets
Budgets for your general ledger expense accounts are a must, and Tabs3 General Ledger (GL) makes it easy to set up budgets for a new year!
To easily determine current budgets for each account, run the Budget Report (In the Quick Launch, search for and select “Budget Report”).
To update budgets in GL
- In the Quick Launch, search for and select “Account Information.”
- From the Budgets tab, select the desired Account #.
- Click the Set Budgets button.
- Enter or select the desired Year.
- From here, you can manually enter each month’s budget figures, or click the Allocate button to open the Create New Budget window (for a new year) or the Budget Allocation window (for previously set up years), and allocate budget amounts to all 12 months at once.
- Click Save.
It’s easy to overlook these periodic maintenance items. Be sure to schedule some time to make sure rates, overhead figures, and budgets are all current!
Accounts Payable Software (APS) and Trust Accounting Software (TAS) allow you to view 1099 information on reports, print 1099-MISC forms for filing, or create a 1099 Disk File which can be used to electronically file with the IRS. Using both APS and TAS together allows you to create a combined file by merging your TAS data into APS to run one set of 1099 forms or create a single electronic file.
Continuous 1099 Forms can be ordered directly from the IRS. However, for laser printer forms, we recommend ordering 1099 Forms from Nelco®. These forms are guaranteed 100% compatible with APS and TAS. Likewise, you can order W-2 Wage and Tax Statement laser forms from Nelco. Now is a good time to take inventory of your 1099 forms, Accounts Payable checks, and Trust Accounting checks so you can order them all at the same time! Nelco has over 50 years of experience in the business forms industry. Order today by calling 1-800-266-4669 or go to nelcosolutions.com/Tabs3.
The end of the year can be a busy time for any firm. One of the areas that firms will need to address in the coming months is the filing of IRS 1099-MISC forms. Tabs3 Accounts Payable Software (APS) and Trust Accounting Software (TAS) are designed to help ease the burden of year-end by making it easy to assemble the 1099 reporting information you need. APS and TAS allow you to view 1099 information on reports, print out 1099-MISC forms for filing, or create a 1099 Disk File which can be used to electronically file with the IRS. Using both APS and TAS together allows you to create a combined file by merging your TAS data into APS to run one set of 1099 forms or create a single electronic file.
Continuous 1099 forms can be ordered directly from the IRS. However, for laser printer forms, we recommend ordering 1099 forms from Nelco®. These forms are guaranteed 100% compatible with the APS and TAS software. Likewise, you can order W-2 Wage and Tax Statement laser forms from Nelco. Nelco is a leading expert on W-2 and 1099 reporting compliance rules and regulations. So when you work with Nelco, you won’t have to worry about keeping up to date with all the yearly reporting changes.
Contact Nelco if you have any questions regarding your W-2 and 1099 filing, or to order your forms.
Web: nelcosolutions.com/Tabs3
E-mail: Nelco@NelcoSolutions.com
Phone: (800) 266-4669
For more information about using the 1099 features of APS and TAS, refer to the “1099” Help topics for each program, which include checklists for generating 1099 information.
