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.
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 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.
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.
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.
Uber rides go to Travel (Schedule C Line 24a). Uber Eats food goes to Meals (Line 24b, 50%). Commuting is not deductible. Employer-convenience office Uber Eats programs went to 0% deductible TY2026+ per OBBBA. No 1099 to Uber.
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 (Detail Type Software), Schedule C Line 27a. No 1099 to Microsoft. Sales tax varies by state. Plus annual-prepay treatment, Copilot, and Azure-split edge cases bookkeepers miss.
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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