AP & AR
1099 vendor tracking
Finbryn tracks US vendor payments through the year against the $2,000 Form 1099-NEC reporting threshold that applies from 2026, flags vendors missing a W-9 with time to fix it, and hands your credentialed preparer or filing partner a clean year-end package instead of a January scramble.
Aged receivables
Illustrative client · August 2026
USD
| Customer | Current | 1-30 | 61+ | |
|---|---|---|---|---|
| Customer A | 18,400 | - | - | - |
| Customer B | 9,250 | 4,100 | - | - |
| Customer C | - | 6,780 | 2,200 | - |
| Customer D | 12,600 | - | - | - |
| Customer E | - | - | - | 1,450 |
| Total | 40,250 | 10,880 | 2,200 | 1,450 |
Illustrative. An example of the document, not a client's figures.
The threshold changed for 2026
Form 1099-NEC and Form 1099-MISC nonemployee compensation reporting used to trigger at $600 in payments to a vendor in a calendar year. For payments made in 2026 and later years, that threshold rises to $2,000. Fewer vendors will cross it, but the ones that do still need clean records, and getting the entity type wrong at the start is what causes most year-end errors.
What we track through the year
Every vendor flagged during onboarding as reportable, generally individuals, sole proprietors and most partnerships, gets a running total of payments updated as bills are paid, not reconstructed after the fact. When a vendor's running total approaches the $2,000 threshold, it shows up on the pre-deadline report we send you well before filing season.
What we do not do
We prepare the data. We do not sign or file Form 1099-NEC or Form 1099-MISC ourselves; that is done by a credentialed preparer holding a PTIN, or by your chosen filing partner, or by you directly if you file your own information returns. Form 1099-NEC must reach both the IRS and the vendor by January 31, whether filed on paper or electronically, so the year-end package is built to be ready well ahead of that date, not on it.
Missing W-9s and TINs
A vendor without a W-9 on file cannot be reported correctly, so we flag those gaps as soon as a vendor's payments start approaching the threshold, giving you time to collect the form before the deadline forces a rushed request.
Handing off at year end
The package we produce, tracked vendor list, running totals, flagged gaps, goes to whoever files on your behalf. If that is a credentialed preparer we do not already work with, we format it to whatever they need to move straight into filing.
Questions
Frequently asked questions: 1099 vendor tracking
Does the new $2,000 threshold mean fewer vendors need a 1099 in 2026?
Yes, for nonemployee compensation reported on Form 1099-NEC and Form 1099-MISC, the threshold rises from $600 to $2,000 for payments made in 2026 and later years, so vendors paid between those amounts will no longer cross it.
Who actually files our 1099 forms if you only track the data?
A credentialed preparer holding a PTIN, a filing partner you choose, or you directly. We hand off a complete tracked-vendor package so whoever files has everything needed without reconstructing it from scratch.
What is the deadline to get 1099-NEC forms out?
Form 1099-NEC must be filed with the IRS and furnished to the recipient by January 31, whether filed on paper or electronically. Our tracking is built to have your data ready well before that date.
What if we already paid a vendor over $2,000 before realizing they needed tracking?
We reconstruct the year's payments from your existing records to bring the vendor current, though starting tracking at onboarding is what avoids that reconstruction in the first place.
What does 1099 vendor tracking actually include, month to month?
1099 vendor tracking covers vendors flagged for 1099 tracking at onboarding based on entity type and W-9 on file, along with running total of payments to each tracked vendor, updated through the year. The work runs inside QuickBooks Online, Xero, Bill.com, Tipalti or Track1099, the file stays under your own subscription, and a senior principal reviews the output before it reaches you each period.
Do you file the 1099 forms for us?
We prepare the underlying data. The forms themselves are filed by a credentialed preparer or your chosen filing partner, not by our bookkeeping team.
What if we only realize a vendor needed tracking in December?
We can reconstruct the year's payments from your records, but starting tracking at vendor onboarding avoids that scramble entirely.
What software works with 1099 vendor tracking?
1099 vendor tracking runs inside QuickBooks Online or Xero, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
How do we get started with 1099 vendor tracking?
Getting started with 1099 vendor tracking begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.