SDO CPA LLC
18 years of experience
Bobby Huang is a partner at SDO CPA. 18 years of hands-on bookkeeping. He still reconciles real client books and built Growthy from the same review-and-approve work bookkeepers do each week.
Salesforce posts to Software or Dues & Subscriptions, Schedule C Line 27a. No 1099. Annual prepay is usually deductible in full under the 12-month rule, not auto-capitalized. Multi-cloud bundles split by product.
Notion posts to Software or Dues & Subscriptions, Schedule C Line 27a. No 1099. Per-seat billing charges only paid members; Notion AI stays an add-on. Annual prepays deduct under the 12-month rule.
Mailchimp sits in Software/Dues & Subscriptions or Advertising, Schedule C Line 27a or Line 8. No 1099 (Intuit is a corporate payee). Pick a bucket and keep it consistent.
HubSpot posts to Software or Dues & Subscriptions, Schedule C Line 27a. No 1099. The real call is Software vs. Advertising for Marketing Hub. Annual prepays deduct in full under the 12-month rule.
GitHub posts to Software or Dues & Subscriptions, Schedule C Line 27a. No 1099. Copilot rides the base line; metered Actions/Codespaces can shift to Cloud Services. Annual prepays deduct under the 12-month rule.
Dropbox posts to Software or Dues & Subscriptions, Schedule C Line 27a. No 1099. Dropbox Sign bills separately but stays Software. Annual prepays deduct in full under the 12-month rule.
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.
See Growthy on a sample book. Read-only bank access.
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