I just make sure to get the paperwork, and then the CPA deals with the rest.
I now use RENTACODER.COM almost primary for most of my website outsourced work. They handle 1099's as covered in their T.O.S.. However, I also get my receipt, or invoice from them.
When I buy other sites, I have them send me an invoice on new sites purchased. Most of that is done through paypal. Until I receive an invoice, they do not get payment.
I make sure to get a receipt for everything including traffic, links, etc. Anything that is business related must have an invoice. If they are an individual. Then they need to make a custom invoice for me.
I put all my business into Quick Books, and export it at year's end. I hand that, and receipts over to the CPA.
I've run into a few companies who do not send me my invoices on the first month, and just bill my card. Unacceptable. I will send them one e-mail asking them to change how they bill. If they do not respond, I cancel my service with them and find another.
I do not want ANY grief from the IRS. I hate taxes like anyone else, but I am not going to gamble my business on the ass rape wager.
I have receipts for every little thing. Including meals and gas. I save them all. If I get audited, hopefully they pack a lunch. Business or personal I have everything. Not just a credit card bill.
