We keep you up-to-date on the latest tax changes and news in the industry.
Independent contractors can be game-changing for small businesses, but managing paperwork, payments, and taxes can be a headache. Fortunately, QuickBooks Online has stepped up its toolkit in 2025 with a suite of features that streamline every step of hiring and paying contractors.
1. Effortless Setup & Tracking
Add contractors via W‑9 email invite
At the touch of a button under Expenses → Contractors, you can “Add a contractor” and invite them by email to fill out their W‑9 directly in QuickBooks®. Their legal name, address, and TIN then automatically populate your vendor profile.
Track thresholds automatically
QBO flags contractors as “1099‑eligible” and tracks all payments made. No need to remember the $600 threshold. It all happens behind the scenes.
2. No More Tax-Time Stress
Prepare and e‑file Forms 1099‑NEC/MISC
In Payroll → Contractors → Prepare 1099s, choose either “Let QuickBooks® prep for you” or generate them yourself. QBO compiles forms based on tracked payments, excluding non-reportable types like credit-card and PayPal transactions.
E‑file federal and state 1099s
With a few clicks, QuickBooks® e‑files unlimited 1099s, sends copies to both the IRS and contractors, and provides filing confirmations, all without leaving the platform.
3. Fast, Flexible Payments
Contractor Payments add-on
With QuickBooks® Contractor Payments ($15/month for up to 20 contractors), you can enable next-day ACH direct deposit, pay by check, or enter payments manually—all recorded for tax reporting.
Self-setup for contractors
Contractors can create free QuickBooks® accounts to enter their own banking or tax info, reducing back-and-forth with your team.
4. Compliance Built In
1099 readiness by design
QBO enforces best practices: it excludes card-based payments (1099-K), caps under the reporting threshold, and excludes corporate entities—all to limit IRS errors.
Secure, centralized records
Everything from W‑9s to e‑file confirmations is stored within QBO, making audits and tax filing a breeze.
5. Stay Ahead with 2025 Updates
Intuitive AI assistants
The new July 2025 release adds AI agents—like the “Accounting Agent” and “Finance Agent”—that help flag issues such as contractor classification errors or missing W‑9s.
Integrated cost tracking
New tools like an employee cost-rate calculator (for Plus/Advanced users) enhance profit tracking on contractor work, seamlessly leveraging payments and payroll data.
6. Real-World Benefits
An HVAC startup saved hours by inviting technicians to enter their own info, eliminating manual data entry.
A boutique marketing agency reduced W‑9 collection time by 70% by sending email invites directly from QBO.
A freelance graphic design business reported zero penalties this year thanks to accurate and timely e‑filing.
QuickBooks® Online now offers a full-cycle solution for contractors—from onboarding and payments to 1099 compliance—built for the demands of 2025. Its modern tools prevent classification mistakes, improve cash flow, maintain audit trails, and eliminate guesswork during tax season.
If you rely on contractors, QBO is critical for growth and compliance.
Sign up for our newsletter.
Diagnosing root causes, prescribing solutions, and guiding your property business toward long-term wealth.
Raquel is a passionate business owner. Now, she is returning to her grassroots with a twist - guiding clients with her expertise as a CPA, she can advise your company as your trusted CFO and Advisor.
✅ CPA with Real-World Experience – I help property managers stay profitable, tax-efficient, and cash flow positive.
✅ Tax Strategist – Former advisor at California’s revenue agency.
✅ Trusted by 4,000+ Businesses – Experience across CA, FL, TX, NV, and beyond.
✅ Real Estate Investor – I understand the financial realities of property management.
✅ Entrepreneur – I’ve built businesses and know the challenges you face.
We diagnose financial inefficiencies, treat problems like poor cash flow or rising costs, and guide you to long-term financial health. That includes cleaning up your books, forecasting cash flow, optimizing operations, and helping you grow your portfolio with confidence — just like a doctor builds a custom care plan for a patient.
Bookkeepers record transactions. CPAs file your taxes. We connect the dots — helping you understand your numbers, strategically improve them, and make smarter decisions throughout the year. We work alongside your existing team to drive performance, not just compliance.
If you're unsure where your cash is going, struggling with rising costs, planning to scale, or just tired of reacting instead of planning — now is the right time. We help you get ahead of problems, not just clean up after them.
Clients typically see improved cash flow, cleaner books, higher NOI, better financial reporting, and a lot less stress at tax time. More importantly, you gain clarity, confidence, and control over your business — and a partner who helps you grow it.
Let us take away your stress and give you back your time. Choose your perfect package today.
Dedicated finance expert
Bookkeeping with accrual basis
Includes P&L, balance sheet, and cash flow statements
Includes everything in Base, PLUS
Industry KPIs and financial ratios
Monthly virtual 1-hr meetings
Monthly rolling budget forecasts
Includes everything in Base, CORE
Budget vs. actuals variance analysis and review
Payroll and HR Platform