SDO CPA LLC
Bobby Huang is a partner at SDO CPA. He still reconciles real client books and built Growthy from the same review-and-approve work bookkeepers do each week.
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.
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.
QuickBooks Payroll spend splits into separate buckets: the service fee, gross wages (Schedule C Line 26), employer payroll taxes (Line 23), and employee withholdings, which are liabilities. Book each bucket to its own account.
Amazon Business expense category depends on what's in the box. A $487 example order with a printer, paper, coffee maker, and a book gets split line by line. The §263(a) $2,500 de minimis rule plus tax-exempt misuse traps round it out.
AWS goes to Cloud Services or Computer & Internet (Office/General Admin), Schedule C Line 25 or 27a. No 1099. Reserved Instances are prepaid expenses, not month-one writeoffs. §174 R&D tagging matters post-OBBBA.
Business Uber rides are deductible transportation; overnight-trip rides go on Schedule C Line 24a. Uber Eats business meals go to Meals (Line 24b, 50%). Commuting is not deductible. Office Uber Eats for employer convenience is 0% after 2025, §274(o).
Adobe Creative Cloud belongs in Software or Dues & Subscriptions (Detail Type: Software), Schedule C Line 27a. No 1099 to Adobe. Sales tax varies by state. Plus the six annual-vs-monthly edge cases that QBO forum threads skip.
Google Workspace belongs in Software or Dues & Subscriptions, Schedule C Line 27a. No 1099. Sales tax depends on state. Annual $4,200 prepay deducts in full under the 12-month rule. GCP charges split out as Cloud Services.
Microsoft 365 belongs in Software or Dues & Subscriptions, reported with other expenses on Schedule C (Line 27b). Check the payee's W-9 before any 1099. Plus annual-prepay treatment, Copilot, and Azure-split edge cases.
Bank rules cap at 200+, Intuit Assist hits ~50% on novel transactions. Here's every QBO automation layer and where each one breaks.
Vendor statement reconciliation catches the 3-5% AP leak that bank feeds miss. Here's a 30-minute monthly workflow for your top 10 vendors.
Credits appear unannounced. Record them wrong once and your AP aging lies to you for the rest of the month.
See Growthy on a sample book. Read-only bank access.
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