Docusign posts to Software or Dues & Subscriptions, Schedule C Line 27a. No 1099. Envelope overages are still Software, just variable. Annual prepays deduct under the 12-month rule.
Canva's subscription posts to Software or Dues & Subscriptions, Schedule C Line 27a. No 1099 (foreign payee, W-8BEN-E). Canva Print is a tangible good, split separately. Annual prepays deduct under the 12-month rule.
If your average customer takes 60 days to pay, you're lending them money for free. You might not notice until payroll gets tight. Late collections don't announce themselves. They creep in one overdue invoice at a time.
You sent the invoice three weeks ago. The client loved the work. Now your inbox is quiet and your bank account isn't moving.
Your AR subledger says $42,000. Your general ledger says $41,450. Close can't happen with a $550 gap.
Getting paid should be simple. You did the work. The invoice went out. Now the money needs to move.
A business has $80,000 in outstanding invoices. It also owes $40,000 to vendors. These two numbers look similar on paper. But they're opposites. One is a current asset. The other is a current liability.
Most people think accounts receivable automation means faster collections. It doesn't. Most AR tools on the market do one thing: send invoice reminders on a schedule.
You sent the invoice 6 months ago. You've followed up twice. You've called once. At some point, you stop treating that $2,400 as money you'll collect.
You sent 20 invoices last month. Revenue looks solid on paper. But cash is thin, and you're not sure why. The answer is probably sitting in your receivables.
You set up QBO for an ecommerce client. The default chart looks fine. Then the Shopify payout lands. You have one "Product Revenue" account. No line for Amazon fees. Sales tax in income where it has no place.
Most ecommerce sellers get paid two to three weeks after a sale. That delay is fine for cash flow planning. But many sellers let that same delay drive how they record costs. That's a much more expensive mistake.
See Growthy on a sample book. Read-only bank access.
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