One of the most valuable things we offer the FreshBooks community is our unique report card service. Your report card shows how you stack up against comparable businesses in your industry in a variety of metrics. You can see where you’re outperforming your FreshBooks brethren (and sistren!), and where you might be able to “up your game,” as the kids say.

Unlike lesser traditions like Talk Like a Pirate Day or Festivus, Report Card Day comes four times a year! We just recently sent out third quarter report cards for 2007, and as we’ve done in the past, we interviewed several top performers to find out the secrets to their success.

This quarter, our focus is on those who collected on their invoices the fastest. How are they getting their clients to pay them so quickly? We asked, and they were only too happy to share.

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Independent contractors are responsible for reporting all income to the IRS, whether or not you received the right forms from your clients. 1099 forms are used to report income to the IRS. This article will help prod your clients to file their 1099 forms.

Who has to report/file form 1099?

Companies/Employers who made payments of $600 or more to independent contractors who provide trade or business services.

When to report?

If the following four conditions are met, you must generally report a payment as nonemployee compensation.

• You made the payment to someone who is not your employee;
• You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
• You made the payment to an individual, partnership, estate, or, in some cases, a corporation;
• You made payments to the payee of at least $600 during year.

Which 1099 form should you use?

Typically, you will receive or file the 1099-Misc form to report income from independent contracting / freelancing. If you have hired contractors you will need to file 1099s and if you are contractor you may receive 1099s from the companies with which you did business.

For other sources of income, though, you will need to use other 1099 forms. There are many other types of form 1099s to report income such as cancellation of debt, dividends, or income from interest.

State laws on form 1099

State laws differ on when a business is required to file a 1099. For example, some states have a limit on the amount of income an individual can be paid as 1099 income from a single business to prevent businesses from avoiding paying taxes and benefits to “employees” by paying them as independent contractors. Be sure to check with your accountant for your state’s policies.

Where to get form 1099

If you are filing your 1099s and 1096 by paper, you must file red scannable copies of the forms with the IRS. These red forms can be obtained for free from the IRS by mail (the forms may be ordered online or by calling 1-800-829-3676) or at your local IRS office. You can also buy red forms at your local office supply store.

Also note, do not use a felt tip marker, as the machine scanner cannot read that type of ink.

Important dates to remember

• January 31, 2008 — deadline to give Copy B of Form 1099 to the recipient.
• February 28, 2008 — deadline to file with the IRS Copy A of Form 1099 as well as Form 1096.
• March 31, 2008 — deadline to file forms electronically.

This is presented as general information only and should not be construed as tax advice. If you need help with filing your forms or other accounting help, please contact Heather Villa.

Updated: The owner has been found! Thank you to the good folks at Westside Animal Hospital for getting Psycho back to his owners.

Alright, so this one’s a long shot, admittedly.

But does anybody know this adorable puppy I found today on the way to work?

He was wandering along Glencairn Avenue between Danesbury and Capitol (we’re in Toronto). He was a curious little guy, but clearly petrified; the car that almost ran him over when he darted across the road probably wasn’t much help, either.

Nor did the lack of a collar, just a cute little bandana lovingly tied around his neck.

He seems grateful to have been found, because he’s an incredibly friendly addition to the office environment today; right now he’s over sitting in Levi’s lap while the two of them work away.

I’ll be canvassing the neighbourhood in a bit, trying to figure out where the little guy came from. But we have those “small world” moments here at FreshBooks all the time, so… is anybody missing a dog?

Next Thursday, November 1, Mike and I are heading down to The New New Internet in Washington, D.C. to paint the Mall red.

Because Mike has ended up speaking on the Software as a Service: Benefits Beyond Delivery panel, we have a free pass to hand out to the first person who is willing to wear one of our stylish T-shirts all day. Please send me your T-shirt size, bearing in mind American Apparel sizes are usually one size smaller than you’re used to.

And if any customers of ours would like to meet for dinner on Friday, please drop mike a note.