What this service covers, and what it does not
Tax season goes badly when the books are not ready for it. Most of what owners feel in March is not tax work at all. It is bookkeeping cleanup, missing vendor W-9s, three months of unreconciled bank feeds, and a state sales tax account nobody has logged into since last filing season. YFG handles that layer. We keep the ledger, the schedules and the recurring filings in a condition your tax preparer can work from instead of rebuild.
We are an outsourced accounting and back-office firm. We prepare books and supporting schedules under US GAAP on an accrual or cash basis, file sales and use tax returns, issue 1099-NEC and W-2 forms, maintain business licenses and annual state registrations, monitor multi-state nexus exposure, and assemble the year-end package your CPA needs to file.
We work alongside your tax preparer. We do not replace one. YFG does not prepare or sign federal or state income tax returns, does not perform audits, reviews or compilations, and does not provide legal or tax advice. Positions on deductions, entity structure, credits, elections, and any formal response to an IRS or state agency belong with your licensed CPA or enrolled agent. If you do not have one yet, we work with the preparer you choose and get them everything they ask for.
The compliance work we take off your desk
Every item below is recurring, deadline-driven, and easy to lose when the person who used to handle it leaves.
Tax-ready books and schedules
Monthly close, reconciled bank and credit card feeds, fixed asset and depreciation schedules, prepaid and accrued liability detail, and a trial balance that ties. Your preparer starts from reconciled numbers instead of a folder of statements.
Learn moreSales and use tax filings
We calculate taxable sales by jurisdiction, file monthly, quarterly and annual returns, and remit on schedule. Includes marketplace facilitator reconciliation for e-commerce sellers and exemption certificate tracking for wholesale accounts.
1099-NEC and W-2 issuance
We collect and validate Form W-9 during the year, flag reportable payments as they post, then prepare, file and distribute Form 1099-NEC by January 31, with Form 1099-MISC on its own filing schedule. W-2 and W-3 output is reviewed against the payroll register before it goes out.
Multi-state nexus tracking
Remote employees, inventory sitting in a third-party warehouse, and sales crossing a state threshold create obligations most businesses discover only when a notice arrives. We track economic and physical nexus by state and tell you when a registration is coming due.
Licenses and annual registrations
City and county business licenses, secretary of state annual reports, franchise tax registrations and renewals, all on a shared calendar with a due date and a named owner. A renewal does not slip because the person who tracked it is out.
Payroll tax filing support
Form 941 each quarter, Form 940 annually, plus state withholding and unemployment filings through Gusto, ADP or Paychex. We reconcile the payroll register to the general ledger every month so the quarterly filings and the books agree.
Learn moreWhat we handle, and what your CPA handles
This is the division of labor we set on day one, in writing, so nothing sits in the gap between two firms.
| Task | YFG Consultants | Your CPA or tax preparer |
|---|---|---|
| Bookkeeping, reconciliations, month-end close | Performs the work | Not typically involved |
| Depreciation, prepaid and accrual schedules | Prepares and maintains | Adjusts for tax basis |
| Sales and use tax returns | Calculates, files and remits | Advises on taxability questions |
| Forms 1099-NEC and 1099-MISC | Collects W-9s, prepares and files | Reviews worker classification questions |
| Forms W-2 and W-3 | Reconciles payroll data and reviews output | Not typically involved |
| Forms 941 and 940, state payroll filings | Prepares and reconciles to the ledger | Reviews if a correction is needed |
| Business licenses and state annual reports | Tracks deadlines and files | Not typically involved |
| Multi-state nexus monitoring | Tracks thresholds and flags exposure | Decides registration and filing positions |
| Year-end trial balance and support package | Assembles and delivers | Uses it to prepare the return |
| Federal and state income tax returns | Not performed by YFG | Prepares and signs |
| Tax planning, elections, entity structure | Not performed by YFG | Advises and decides |
| Audit, review and compilation reports | Not performed by YFG | Performs, if licensed to do so |
| IRS or state notices | Pulls filings, payments and ledger detail | Drafts the response and represents you |
Scroll the table sideways on a small screen.
Dates and ranges that shape the work
How a compliance year runs with us
Nothing here waits for January. The year-end package is a byproduct of work already done.
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Every month
We close the books, reconcile bank and credit card feeds, tie the payroll register to the ledger, file monthly sales tax returns, and flag every new vendor without a Form W-9 on file.
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Every quarter
Form 941 and state withholding and unemployment filings are prepared and reconciled. Quarterly sales tax returns go out. We review year-to-date sales and employee locations against nexus thresholds and tell you if a new state registration is coming.
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November and December
Pre-close cleanup. Fixed asset additions and disposals, accrued liabilities, loan balances tied to lender statements, owner draws and distributions coded correctly, inventory counts recorded, and a final W-9 chase so January is not a scramble.
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January
Form 1099-NEC is prepared, filed and distributed by the 31st, with 1099-MISC on its filing schedule. W-2 and W-3 output is checked line by line against the payroll register and the general ledger before release.
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Year-end handoff
Your CPA receives the full package and a named contact at YFG who answers their follow-up questions directly. You stop being the message relay between your bookkeeper and your tax preparer.
What goes in the year-end package
This is the standard package. Your preparer can request more, and we build the extras into the following year's close so the ask happens once.
- Financial statements and trial balanceFull year balance sheet, income statement and trial balance, cash or accrual basis, with prior year comparatives.
- General ledger detailComplete general ledger export with drill-down to the source invoice, bill or receipt.
- Twelve months of reconciliationsEvery bank, credit card and merchant account reconciled, with the underlying statements attached.
- Fixed asset roll-forwardAdditions, disposals and book depreciation by asset, with invoices for the current year purchases.
- Debt and lease schedulesLoan and note balances tied to lender year-end statements, split between principal and interest.
- Accrual supportAccrued liabilities, prepaid expenses and deferred revenue schedules with the calculation behind each balance.
- Payroll reconciliationWages and taxes per the ledger tied to Forms 941, 940 and W-3, with owner compensation identified separately.
- 1099 recipient listRecipients, amounts, TINs and W-9 backup, matched to what was actually filed.
- Inventory valuationEnding inventory with the costing method stated and the count or roll-forward that supports it.
- Sales tax filing logReturns filed and amounts remitted by state and period, plus any open or pending registrations.
Common questions about scope
Can YFG file our business income tax return?
No. We do not prepare or sign federal or state income tax returns, and we do not represent clients before the IRS. That work belongs to a licensed CPA or enrolled agent. Our job is to get the books, schedules and support to a state where your preparer can file quickly instead of starting with a cleanup project. If you already have a preparer, we work with them directly.
Do we have to switch accounting software?
No. We work in QuickBooks Online, QuickBooks Desktop, Xero, NetSuite and Sage Intacct, with Bill.com for payables, Gusto, ADP or Paychex for payroll, and Expensify or Ramp for expenses. If your stack works, we use it as is. If something in it is actively costing you time, we will tell you why and what a migration would involve, then leave the decision to you.
How do you handle sales tax in states where we are not registered?
We measure before anyone registers anything. We pull sales by state and channel, compare them against each state's economic nexus threshold, and check physical factors like remote employees and third-party warehouse inventory. Where an obligation exists we show you the exposure and the date it started. Whether to register, and how to treat prior periods, is a decision you make with your CPA, since voluntary disclosure and penalty relief may be on the table.
What happens when an IRS or state notice arrives?
Send it to us the day you get it. We pull the filed return, the payment confirmation and the supporting ledger detail, usually within one business day, and give your CPA a complete record to respond from. Drafting the response and representing you before the agency is the role of your CPA or enrolled agent, not ours.
Our vendor records are a mess and we are behind on 1099s. Can you fix it?
Yes. We deduplicate the vendor list, request the missing Form W-9s, validate TIN and entity type, and separate reportable payments from payments made by credit card or third-party network, which the processor reports on Form 1099-K. Then we prepare and file. If prior years are open, we will lay out what correcting them involves so your CPA can decide how to proceed.
Do you work with CPA firms directly?
Yes. CPA firms use us for overflow bookkeeping, close support, 1099 season and sales tax filings under their own client relationships. We work in your systems, follow your naming conventions and workpaper standards, and stay in the background. We do not solicit your clients.
How is this priced?
A flat monthly fee based on transaction volume, number of entities, the states you file in, and how much payroll and payables run through the books. No hourly surprises and no per-question billing. Most businesses can expect to run a full back office through YFG for 40-60% less than a comparable in-house team, and we put that comparison in writing before you commit to anything.
Get a no-cost quote before your next deadline
Tell us your entity count, the states you file in, and where the books stand right now. We will walk through scope on a free consultation and send a written quote with the division of labor spelled out. Call (209) 456-5966 or email info@yfgconsultants.com.