What This Feature Helps You Solve
Managing 1099s often involves:
Identifying eligible vendors
Reviewing transactions for eligibility
Collecting missing W-9s and tax details
Tracking progress across vendors and clients
Preparing clean data for filing software
The Xenett 1099 module brings all of this into one consolidated workflow so you can review, communicate, and prepare exports without switching tools.
Step 1: Configure 1099 Accounts Correctly
Before reviewing vendors, confirm that the right accounts are configured.
Source Accounts (Cash Basis)
Xenett pulls transactions from bank and credit card accounts.
Since 1099s are cash-basis, credit card accounts are usually excluded.
Review the Exclude Source Accounts list carefully.
Leave unchecked only the accounts you want Xenett to pull transactions from.
⚠️ Important: Be cautious with merchant or clearing accounts that may not represent true bank activity.
Split Accounts (Expense Eligibility)
Some expenses are never 1099-eligible (e.g., inventory, reimbursements).
Exclude those expense accounts in the Split Accounts section.
This prevents ineligible payments from appearing in 1099 totals.
What Xenett Displays After Configuration
Once configuration is complete, Xenett displays a master list of vendors with the following information:
Vendor name and Legal name
Creation date
Address, Email ID and Tax ID
Total Payments and Posting Accounts
Step 2: Review and Mark Vendor Eligibility
For Each Vendor;
Select Yes to mark a vendor as 1099-eligible and choose the appropriate form/type (e.g., Rent, Other Income).
Select No to permanently exclude the vendor from 1099s.
Important Notes:
Vendors marked No will not appear in future years
Xenett displays only vendors who:
-Meet the IRS payment threshold
-Have payments from eligible source accounts
Step 3: Collect Missing Information (W-9, Address, Tax ID)
If required details are missing, Xenett allows you to request information from both clients and vendors. All updates sync automatically with your accounting system.
Request Information from Clients
Use the question icon to request missing details or W-9s via the Xenett client portal.
Client responses are tracked directly against the vendor.
Request W-9s from Vendors
Send W-9 requests directly to vendors provided an email address is available.
Xenett uses a predefined email template (editable in Settings).
Vendors upload the W-9 using a secure link.
Automatic W-9 Attachment and OCR
When a W-9 is uploaded:
The document is automatically attached to the vendor record in QuickBooks.
Xenett uses OCR to extract:
Legal name
Address
Tax ID
With one click, OCR data updates the vendor profile. This eliminates manual data entry and reduces errors.
This two-way sync eliminates manual data entry and reduces errors.
Separate 1099 Mailing Address
If a vendor requires 1099s to be mailed to a different address:
Enter a 1099-only address
Disable sync to accounting software
This keeps the QuickBooks address unchanged while using a different mailing address for 1099s.
Tip & Tricks
> Exclude Specific Transactions
Even if a vendor is eligible, not every transaction may qualify.
Example:
Contractor payment → eligible
Expense reimbursement → not eligible
You can:
Click into the vendor’s payment total
Review individual transactions
Exclude specific transactions with one click
Xenett recalculates the 1099 amount automatically.
> Use Filters to Work Faster
Helpful filters include:
New Vendors – Identify vendors added in the current year
Missing Information – Find vendors missing address, tax ID, or email
These filters help you prioritize review and outreach.
> Track Progress with Statuses and Notes
Vendor-Level Status
Used as internal tags (e.g., Ready to File, Waiting on Client)
Fully customizable
Notes can be added per vendor
Vendor statuses and notes stay in Xenett and do not sync to accounting software.
Client-Level Status
Track progress across multiple clients
Examples: Not Started, Waiting on Client, Completed
Visible in Firm Level Insights → 1099 Overview for a high-level progress snapshot
> Bulk Actions
To save time, you can apply actions to multiple vendors at once:
Mark eligibility (Yes / No)
Assign 1099 types
Update statuses
This avoids repetitive one-by-one updates.
> Custom Fields for 1099 Workflow
Xenett allows you to create custom fields for additional tracking.
Examples:
Entity Type (Individual, LLC, Corp)
Reviewer Approval (checkbox)
Reset Every Year Option
Enable if the field is seasonal (e.g., review completed)
Disable if the field should carry forward (e.g., entity type)
Custom fields appear as additional columns in the 1099 view.
For more details, refer to the dedicated article on Custom Fields for 1099.
> Export Data for Filing
Xenett does not file 1099s directly. Instead, it prepares clean, structured data for filing.
You can export:
Data formatted for supported 1099 filing platforms
Standard Excel reports
Eligible vendor transactions (all vendors and transactions in a single file)
These exports can be imported into third-party filing software or used for internal review.
Key Notes and Limitations
Xenett supports 1099 preparation only; filing and IRS submission are handled outside the platform
Credit card payments are generally excluded due to 1099 cash-basis rules
Vendor and client statuses are for internal tracking only
Summary
The Xenett 1099 module centralizes vendor review, transaction validation, W-9 collection, and progress tracking into a single workflow. With automation, OCR, bulk actions, and exports, it significantly reduces the manual effort helping you move into filing season with confidence and less stress.