What the accounting actually looks like
A two-sided handyman marketplace recognizes platform-fee revenue on each completed job and may also process the homeowner payment in full before remitting to the pro. That distinction, gross versus net revenue, drives the entire P&L and must be settled in policy and reflected consistently in the books. Vendor payouts to handyman pros generate a substantial 1099-NEC population, since most are sole proprietors or single-member LLCs. Refunds, disputes, and partial-job adjustments hit regularly. A monthly close with weekly payout reconciliation matches the operating tempo.
How ATCS handles it for localhandyman.work
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1099-NEC vendor tracking with tokenized W-9 capture
Every paid pro is a likely 1099 recipient; tokenized W-9 capture during onboarding avoids a January scramble.
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Multi-account reconciliation
Stripe Connect or split-pay flows reconcile against the operating account so net platform revenue is visible at any point.
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AI-assisted categorization
Refunds, payouts, and platform fees each have their own pattern; once corrected, the model holds.
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Audit log + close-cycle workflow
Disputes that resolve weeks later need a controlled reopen, not a silent edit.
Bookkeeping reality for Local services & marketplaces
Two-sided marketplaces and event platforms live on the gross-versus-net revenue question. Whether the books recognize platform fees only or full transaction value, then remit to providers, has to be settled in policy and reflected consistently. Provider payouts produce large 1099-NEC populations — most local-service providers are sole props or single-member LLCs — making tokenized W-9 capture and encrypted TIN storage table stakes. Refunds, weather cancellations, and partial-job adjustments are recurring journal volume. Sales tax marketplace-facilitator rules apply in some states.