1099s Are the Symptom, Not the Problem
WHY YEAR-END PREP IS REALLY A TEST OF FINANCIAL READINESS | An Interview with Susan Sieber
Every January, the same assumption resurfaces: 1099 prep is a simple tax task… right?
You'll pull the data from QuickBooks. Issue the forms. Check the box.
But to the finance teams who see the work up close, 1099s reveal something deeper. They expose how organized— or disorganized— the financial backbone of a company really is.
As AVL Controller Susan Sieber puts it:
“1099s show you how well the basics have been handled all year long. If the fundamentals are messy, this is where you start to see it.”
It’s less about the form, more about what the process reflects.
THE MISCONCEPTION | “We’ve Got the W-9s”
When leaders think about 1099 prep, many assume the hardest part is collecting W-9s. In reality, that’s only step one.
Before a single form can be filed, teams must:
Identify which vendors qualify under specific IRS rules
Validate vendor classifications across the ledger
Distinguish between services, reimbursements, and exempt categories
Ensure vendor records actually match real-world activity
“You can’t just export a list,” Susan explains. “There’s analysis involved — and real judgment about what each vendor does and how they’re used.”
It’s the type of clarity that no automation tool can fully replace.
WHERE THINGS BREAK | (and Why It’s Rarely the Vendor)
When 1099s go sideways, the root cause usually isn’t vendor behavior— it’s a company’s internal process.
Typical breakdowns include:
No standardized vendor onboarding, or not including collecting W-9s as a part of onboarding
Missing or outdated W-9s
Vendor records that weren’t maintained throughout the year
Cleanup postponed until January, when pressure peaks
“If you wait until January, the business doesn’t slow down so you can catch up,” Susan notes. “Something always ends up suffering.”
And that stress often forces teams into reactive decisions that ripple far beyond tax filings.
READINESS IS BUILT UPSTREAM
The companies that glide through January all share one thing: discipline earlier in the year.
Their systems look like this:
W-9s collected at vendor onboarding
Mid-year checks to clean up/track records
Bookkeeping that reflects real operations, in real time
Clear categorization that makes year-end tasks almost mechanical
The result?
January becomes a few hours of verification— not a multi-week scramble.
Reactive teams experience the opposite: lost time, inconsistent data, rising anxiety, and cut corners.
WHY THIS MATTERS BEYOND TAXES
1099 prep touches the core of financial operations. That’s why outsiders— banks, investors, acquirers, auditors— pay attention to these details.
A messy 1099 workflow signals:
Weak financial hygiene
Risk of compliance issues
Gaps in oversight
Potentially unreliable financial statements
And those signals compound during fundraising, diligence, or audits.
“It’s not really about the form,” Susan says. “It’s about the confidence people can have in your financial operations. 1099s just make the gaps visible.”
The price of sloppiness isn’t just penalties— it’s credibility.
1099s AS A READINESS SIGNAL
Across AVL’s Accountant cohort, a clear pattern emerges every year.
Companies that are “ready” tend to:
Have systems that reflect real workflows
Maintain consistent vendor data
Prepare before deadlines instead of reacting to them
Demonstrate operational discipline long before January
Companies that scramble often struggle across other areas too — forecasting, reporting, decision-making.
That’s why 1099s, despite their reputation, are such an important moment.
They force one question: Is the way we operate built for stability — or for scrambling?
In that sense, 1099s are less a tax task and more a test of readiness.
A reflection of how clearly the business sees itself.
And a preview of how confidently it will enter the year ahead.
READY TO STRENGTHEN YOUR FINANCIAL FOUNDATION?
If this is the first moment you’re realizing your vendor records, workflows, or year-end processes aren’t where they should be, you’re not alone — and it’s fixable.
AVL helps companies build discipline and clarity into their financial operations year-round through:
These aren’t about forms — they’re about reducing risk, creating visibility, and giving leadership the confidence to operate without surprises.
If you’re looking to strengthen your foundation before growth pressure hits, we’re here to help.