Bookkeeping Terms Glossary
Cash Flow Statement: What It Is & How Bookkeepers Build It
The cash flow statement reconciles net income to actual cash movement across operating, investing, and financing activities.
10 min
Current work
SDO CPA LLC
Experience
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.
Published Articles
Cash Flow Statement: What It Is & How Bookkeepers Build It
Balance Sheet: What It Is & How Bookkeepers Read It
Bookkeeping Terms Glossary
Balance Sheet: What It Is & How Bookkeepers Read It
Assets = Liabilities + Equity. Learn the 3-section structure, the bookkeeper review sequence, and 4 red flags every month.
8 min
Gross Profit: Definition, Formula, & How It Differs From Net Income
Bookkeeping Terms Glossary
Gross Profit: Definition, Formula, & How It Differs From Net Income
Gross profit = Revenue minus COGS. It sits at the top of your P&L and shows whether your core product or service actually makes money.
8 min
Amortization: What It Is & How Bookkeepers Record It
Bookkeeping Terms Glossary
Amortization: What It Is & How Bookkeepers Record It
Amortization has two meanings in bookkeeping. Here's what each one means and how to record both correctly at month-end.
8 min
Journal Entry: What It Is & How Bookkeepers Use It
Bookkeeping Terms Glossary
Journal Entry: What It Is & How Bookkeepers Use It
Every transaction in double-entry accounting lives in a journal entry. Here's what's in one, the 4 types bookkeepers use, and when to hand-key vs let software handle it.
8 min
Fixed Assets: What They Are & How Bookkeepers Track Them
Bookkeeping Terms Glossary
Fixed Assets: What They Are & How Bookkeepers Track Them
Fixed assets are long-lived tangible items capitalized at cost. Here's how bookkeepers track them: FA register, addition entries, monthly depreciation, and disposal.
10 min
Deferred Revenue: What It Is & How Bookkeepers Record It
Bookkeeping Terms Glossary
Deferred Revenue: What It Is & How Bookkeepers Record It
Cash is in the bank but the work isn't done yet. Here's why that's a liability, not revenue, and how bookkeepers track every dollar until it's earned.
10 min
How to Categorize Stripe Fees in QuickBooks (Net vs Gross, 1099-K, and Refunds)
Chart of Accounts
How to Categorize Stripe Fees in QuickBooks (Net vs Gross, 1099-K, and Refunds)
Stripe fees go to Merchant Account Fees (Schedule C Line 27a), NOT Line 17. Each Stripe deposit splits into gross revenue, fees, refunds, and sales tax. Net-vs-gross posting is the #1 trap. 1099-K TY2026: $20,000 + 200 transactions per OBBBA.
9 min
How to Categorize Shopify in QuickBooks (Subscription, Payments, Capital, Apps)
Chart of Accounts
How to Categorize Shopify in QuickBooks (Subscription, Payments, Capital, Apps)
Shopify is two categories at once: subscription (Software) and Payments processing fees (Merchant Account Fees). 1099-K TY2026 threshold $20,000 + 200 transactions per OBBBA. Shopify Capital is a loan, not income. Sales tax collected is a liability.
9 min
How to Categorize Upwork in QuickBooks (And Why You Don't Issue a 1099)
Chart of Accounts
How to Categorize Upwork in QuickBooks (And Why You Don't Issue a 1099)
Upwork goes to Contract Labor (Schedule C Line 11). You don't issue a 1099-NEC to Upwork OR to the freelancer: §6041 corporate exemption applies because Upwork is the payee. The direct-pay-outside-platform $2,000 TY2026 OBBBA threshold is the trap.
9 min
How to Categorize QuickBooks Payroll Fees in QuickBooks (and Xero)
Chart of Accounts
How to Categorize QuickBooks Payroll Fees in QuickBooks (and Xero)
QuickBooks Payroll fees go to Legal & Professional Services (Schedule C Line 17). Wages go to Wages & Salaries (Line 26). Employer payroll taxes go to Payroll Taxes (Line 23). Three different lines, often lumped, frequently wrong.
9 min
How to Categorize Amazon Business Purchases in QuickBooks
Chart of Accounts
How to Categorize Amazon Business Purchases in QuickBooks
Amazon Business expense category depends on what's in the box. A $487.32 receipt with a printer, paper, coffee maker, and a book splits into four GL accounts. The §263(a) $2,500 de minimis rule plus tax-exempt misuse traps round it out.
8 min
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