Accounts Payable Management
Dimov Tax handles accounts payable management for small and midsize businesses: vendor setup, bill entry, approvals, payment runs and year-end 1099 reporting. You approve every payment, and a CPA or enrolled agent oversees the work.
Call (866) 681-2140 to talk through your payables.
- Over 3000 five star reviews
- Trusted by clients in 27+ countries
- Across all 50 states
On-time payments. Dimov Tax tracks due dates and pays each bill by its due date.
Bank change calls. Dimov Tax confirms each request to change vendor payment details by phone before paying.
1099s on time. Dimov Tax files Forms 1099 for 2026 payments by February 1, 2027.
Accounts Payable Services
Payment methods.
Dimov Tax pays vendors by ACH, check, card or international wire.
Vendor terms.
The team negotiates payment terms with vendors and takes the early-payment discounts they offer.
Spending reports.
The team reports spending by vendor and category each month, against the budget.
Vendor records.
The team files each invoice, check and statement by vendor.
10,000+
successful tax filings.
3,000+
five star reviews.
Enrolled Agents
on staff.
7am to 8pm
seven days a week.
Upload a recent payables aging and a month of bills through the secure portal. Dimov Tax keeps each document confidential and replies within 24 hours with a fixed monthly quote.
Vendor Setup, Forms W-9 and Backup Withholding
The IRS calls Form W-9 the first step after classifying a contractor, and the payer keeps it for four years. Payers can check names and taxpayer IDs against IRS records through TIN Matching before filing.
If a vendor gives no taxpayer ID, the payer withholds 24% from nonemployee pay right away, under the Form W-9 instructions. On a single $2,400 payment, the payer withholds 24% × $2,400 = $576, then deposits it and reports it on Form 945.
1099 Threshold for 2026 Payments
Congress raised the Form 1099-NEC reporting threshold to $2,000 for payments made after December 31, 2025, and indexed it to inflation for years after 2026, under 26 U.S.C. 6041. Payers report no payments to corporations, except legal fees on Form 1099-NEC and medical or health care payments on Form 1099-MISC, under the IRS instructions.
A business pays four vendors for services in 2026:
| Vendor | Paid in 2026 | Form |
|---|---|---|
| Sole proprietor A | $1,800 | None, under $2,000 |
| Sole proprietor B | $2,400 | Form 1099-NEC for $2,400 |
| Law firm taxed as a partnership | $1,500 | None, under $2,000 |
| Corporation, consulting | $9,000 | None, corporation exempt |
The business sends one Form 1099-NEC, for Sole proprietor B, to the vendor and the IRS by February 1, 2027, since January 31 falls on a Sunday. For card payments, the card processor files Form 1099-K instead.
Paid by card or a payment network?
YesForm 1099-K from
the processor
Vendor is a corporation?
YesLegal fees $2,000+:
Form 1099-NEC
Medical: 1099-MISC
Other: no formPaid $2,000 or more for services in 2026?
NoNo form, unless
the payer withheld tax
YesForm 1099-NEC
due February 1, 2027
Late 1099 Penalties for Returns Due in 2027
The IRS charges a separate penalty for each late IRS filing and each late vendor copy:
A business filing 10 or more information returns of any type must e-file them, under Publication 1099. From January 1, 2027, the IRS accepts e-filed information returns only through IRIS, its Information Returns Intake System.
- Up to 30 days late. $60 per return.
- 31 days late through August 1. $130 per return.
- After August 1 or not at all. $340 per return, or for intentional disregard, $690 or 10% of the amounts, whichever is more.
Accounts Payable Controls
Three-way match. The team checks each invoice against the purchase order and the receiving record before paying it.
Duplicate checks. The team checks each new bill against bills already paid before adding it to a payment run.
Separate duties. You approve each payment in the payables tool, and Dimov Tax enters and pays it, so no one person can both approve and pay a bill.
Business Email Compromise and Vendor Payments
Dimov Tax confirms each vendor bank change by calling a number already on file.
The IC3, the FBI’s Internet Crime Complaint Center, tells businesses to verify account change requests through a second channel and to call their bank at once to request a recall.
Business email compromise is fraud in which a scammer poses as a vendor or executive by email to redirect a payment.
Victims reported 24,768 complaints and $3,046,598,558 in losses in 2025, second only to investment fraud, in the FBI IC3 annual report.
Records for Each Vendor Payment
Under Publication 583, a business supports each expense with canceled checks, account statements, card slips and invoices. The IRS asks businesses to keep records 3 years in the general case and employment tax records at least 4, under its recordkeeping rules.
Accounts Payable Outsourcing Process
Clean the vendor file.
Dimov Tax collects missing Forms W-9 and checks each taxpayer ID before the first payment run.
Route the bills.
Vendors send invoices to one inbox, and the team codes each bill to the right account and job.
Pay on schedule.
Dimov Tax pays each approved bill on the agreed day.
Close the month.
The team reconciles payables to the general ledger and sends you the aging report.
How Dimov Tax Prices Accounts Payable Services
Dimov Tax bases the fixed monthly fee on:
Bills per month. The number of invoices entered and paid.
Vendors. Active vendors and the forms each needs in January.
Payment runs. Payment frequency and the methods used.
Catch-up. Missing vendor forms or a backlog of unpaid bills.
The light end is a single entity with one approver and a short vendor list. These are the factors, not a quote.
Same-Day Replies for Payables Clients
We always had a 24-hour rule at the company. And really, if you ask me, it’s a same day rule. The same day rule means that if you contact us and you’re a client, you’ll get a response that day, worst case, within 24 hours.
Switch Accounts Payable Management Midyear
Dimov Tax can take over payables midyear and clean up the vendor file before January, so the 1099s are accurate.
Send the vendor list and open bills, and Dimov Tax quotes the vendor file cleanup with the monthly fee.
Reviewed by George Dimov, CPA. Certified to practice in all 50 states. 15+ years advising on business accounting, payables and information returns.