QBO Custom Report

I'm trying to generate a report that will show each sales transaction for the year with the following information:

-Date
-Client Name
-Service Type
-Memo
-Amount
-Payment Method (e-check, credit card/debit card, etc)

I was playing around and generated a "Sales by Client Detail" and added the payment method column to the report, but the payment method column is empty for each entry.

I do not provide bookkeeping or general accounting services so QBO is not my wheelhouse. My only current exposure to it is doing my own bookkeeping.

What I'm trying to obtain is a report which I can then use determine which business clients need to 1099 me, as I'm not organized as a corporate tax entity. I plan to inform those clients of this particular obligation as a courtesy, regardless of whether I prepare their 1099s or they have them prepared outside of my practice.

Perhaps I am overlooking something obvious (could be, my brain is fried at this time of the year), but how does payment type impact what you are trying to determine?

I would just look at a list of sales by customers and any client paying you $600 or more should be issuing you a 1099. Or, run a cash basis profit & loss, double click on total of all revenue items, and throw into Excel to sort by client and then use the subtotal feature.

For whatever it is worth, the reporting functionality in QBO still SUCKS compared to Desktop. While the data fields may show up as being available, they are not actually connected to the database for certain reports, hence the payment method column remaining blank. Though, this would not be doable in Desktop either...at least, not a single report and without some Excel work.

Perhaps I am overlooking something obvious (could be, my brain is fried at this time of the year), but how does payment type impact what you are trying to determine?

Only business clients that pay me via check or e-check would have a potential 1099-MISC obligation. Those that pay through debit/credit card or a third party payment network have no 1099-MISC obligation to me as the reporting obligation is pushed to the payment facilitator (Form 1099-K).

Looks like I might have to forgo the courtesy...

Though, this would not be doable in Desktop either...at least, not a single report and without some Excel work.

[edit #2] I guess this post is about generating a 1099 report for the vendor/recipient (tax preparer), not the payor (customer). My comments below are about 1099 reports for the company, used to determine which 1099's it should be issuing, not the ones it should be receiving.

I understand the motivation; however from a programming standpoint, I can't blame Intuit for focusing on providing the report where it belongs. Why don't your clients use their own QB or other bookkeeping software to come up with their own list of 1099s (or you do it for them, for a fee). Generating a report for the recipient clearly doesn't cover the clients' need to identify all the other recipients.
----[end edit #2]-----

I'm not where I can check the program myself, but I believe the 1099 report in QB Desktop definitely does filter out payments made by credit card, without any user customization required. I remember being very puzzled once why a vendor I expected to see in the report didn't show up, and finally concluded it was because of payment being recorded as CC payment in QB.

https://quickbooks.intuit.com/learn-sup ... /00/369312

[edit] further searching confirms my statement above:

"Why are some payments missing or excluded from a vendor’s 1099?

Payments you made by credit, debit, or gift card, and payment networks like PayPal are excluded. Instead, the payment companies report those payments to the IRS for you."

https://quickbooks.intuit.com/learn-sup ... /00/185437

Perhaps I am overlooking something obvious (could be, my brain is fried at this time of the year), but how does payment type impact what you are trying to determine?

Only business clients that pay me via check or e-check would have a potential 1099-MISC obligation. Those that pay through debit/credit card or a third party payment network have no 1099-MISC obligation to me as the reporting obligation is pushed to the payment facilitator (Form 1099-K).

Looks like I might have to forgo the courtesy...

Oh, yeah...see? Brain fog. I'm an S-Corp so rarely think about it, and none of my clients that require 1099s to be sent to them accept credit cards.

"Why are some payments missing or excluded from a vendor’s 1099?

Payments you made by credit, debit, or gift card, and payment networks like PayPal are excluded. Instead, the payment companies report those payments to the IRS for you."

Yeah, that is assuming the payer set up and entered the payment correctly, and the payee recorded it properly. A lot of people enter credit card transactions via journal entry, especially if a bank feed is not available, and that alone would cause a vendor to have payments misreported.

I venture to say most 1099s are incorrect. My clients do not want to pay me to review their 1099 reporting requirements, so I do not unless I handle ALL accounting. When I have reviewed someone else's books, I have ALWAYS found errors with their 1099s. Better for me to just wash my hands of the mess.

none of my clients that require 1099s to be sent to them accept credit cards.

In the context of this thread (who needs to send a 1099 to you), it's about whether you accept credit cards, not them (disregarding your corporate status).

Oh, yeah...see? Brain fog. I'm an S-Corp so rarely think about it, and none of my clients that require 1099s to be sent to them accept credit cards.

Not to derail my own thread (if it's mine I can derail it correct )... but I'm assuming you were S long before the TCJA?

I've found the QBID under the TCJA has shifted the math in favor of disregarded entity/sole proprietorship. Especially if reasonable comp is high in relation to net taxable income and/or if the owner is tapped out on SS withholding. I don't see myself going S now for a long, time.

Looks like I might have to forgo the courtesy...

Yes, I see nothing but drawbacks.

Drawback #1: a year or two down the road, client is facing penalties for failure to file 1099-MISC, and comes to you saying, "but I filed the one you said I had to file!"

Drawback #2: suppose you charge $800 for a Form 1040 including $250 for Schedule C. Client's business is not required to issue you a 1099-MISC for this, but unless the QB invoice and payment are allocated to different sub-accounts (one for business return prep, one for personal), this won't be reported correctly.

Drawback #3: client and you must sign ("Subscribe") the return under penalty of perjury including "Are you required to file 1099-MISC forms, and if so, did you (or will you)?" What are you supposed to do if client says they filed all 1099-MISC (good faith reliance) but you suspect/know they should have issued one to you, but you don't remember getting it? What do you do?

Not to derail my own thread (if it's mine I can derail it correct )... but I'm assuming you were S long before the TCJA?

I've found the QBID under the TCJA has shifted the math in favor of disregarded entity/sole proprietorship. Especially if reasonable comp is high in relation to net taxable income and/or if the owner is tapped out on SS withholding. I don't see myself going S now for a long, time.

My current company made S-Corp election a year before TCJA took effect. The firm I had prior, which I chose to basically shutter to cut agency with my former partner, was also an S-Corp.

You may be right on that front. I have not experienced it myself in preparing client returns, but it seems logical under certain conditions.

Cornerstone -- To add, if you're above the QBID phaseout an S probably makes more sense.

Makbo -- Well noted. I have also considered the risks. Drawback #3 will be there no matter what path forward I take. I would advise the client to file a late 1099-MISC of course, otherwise we have to mark those boxes appropriate OR I cannot sign the return.

I think my path forward will be to mention in my 1099-MISC e-blast that I am an organized as an unincorporated tax entity, and payments made to me in the ordinary course of a trade or business may be subject to the 1099-MISC filings requirements. Clients should reach out to me if they have any questions. I'll leave it at that.

I think my path forward will be to mention in my 1099-MISC e-blast that I am an organized as an unincorporated tax entity, and payments made to me in the ordinary course of a trade or business may be subject to the 1099-MISC filings requirements. Clients should reach out to me if they have any questions. I'll leave it at that.

And maybe just send each of them a W-9 form for yourself!