Where do I deduct subscription software I resell, i.e. Cost of Goods? For instance, I purchase/manage things like Carbonite for various customers and then bill them.

Cost of Goods is probably the best selection.  This is the preferred place to report inventory; in other words:  the purchases you make for re-sale.  This way, the expense for purchases that you haven't sold by the end of the year are suspended until they are sold.  Listing the items as "supplies" is not inaccurate, but cost of goods is definitely more accurate reporting.