If your U.S. business has a non-U.S. owner or shareholder, you may be required to file IRS Form 5472. And here’s the thing: many founders don’t realize it until they’re hit with a $25,000 penalty.
In accounting, a debit is an entry that increases assets or expenses, while a credit increases liabilities, equity, or revenue. Every transaction affects at least two accounts — one with a debit and one with a credit — to keep your books balanced.
Not exactly. It depends on the type of account. For example, debiting an expense means you're spending money, but debiting an asset like cash means you're receiving money. That’s why understanding account types is essential.
Even if someone else handles your books, knowing the basics helps you read financial reports, ask better questions, and make smarter business decisions. It also makes you a stronger communicator with your finance team or investors.
A T-account is a simple visual tool used in accounting to show how a transaction affects two accounts. Debits go on the left, credits on the right. It’s a great way to visualize the flow of money and keep things balanced.
Look for common red flags: negative balances, uncategorized transactions, or mismatched totals. If you’re unsure, it’s worth having a professional review your books to make sure everything aligns before big decisions or tax time.
Josh believes the value of accounting lies in interpretation, not calculation. Tools such as Exce; already do the math—what founders need is someone to explain what the numbers mean and how they impact strategic decisions. That’s why Function focuses on turning data into stories that help drive business forward.
Josh built Function with intention: hire thoughtfully, delegate wisely, and embed values into every part of the team. Delegation wasn’t easy, but it allowed Function to grow without becoming impersonal. The goal is to deliver high-touch service at scale—and keep founders from burning out trying to do everything themselves.
Function addresses a common frustration: most founders are left to interpret their own financial data. Instead of delivering static reports, Function turns numbers into clear, actionable insights that guide decision-making—pushing information to founders rather than making them dig for it.
Getting started with Function is simple. Founders can visit onefunction.com to book an intro call, learn more about the services offered, and see if the team is the right fit. The onboarding process is built to be smooth and tailored—starting with a conversation about your current financial setup, goals, and the support you need to grow confidently.
In today’s tougher funding environment, investors expect startups to be more financially disciplined. Function steps in with experienced, unbiased financial guidance to help founders stay focused, meet their targets, and present investor-ready financials.
Yes. Even if you’re pre-revenue, you’re likely spending money—whether on software, legal fees, marketing, or contractors. Bookkeeping helps you track those costs, stay organized for taxes, and prepare for investor conversations before they happen.
Waiting often creates more problems than it solves. Messy or missing records can lead to costly cleanup, missed tax deductions, or even lost funding opportunities. Getting your books in order early means less stress and smarter decisions from day one.
It depends on your stage and growth plans. In the beginning, you may just need basic transaction tracking. As you scale, you’ll need deeper insights, reporting, and forecasting. Function grows with you—from clean books to CFO-level strategy.
We handle the financial heavy lifting, so you don’t have to. From tracking expenses to CFO strategy insights, Function gives you clean, up-to-date books and actionable information—so you can focus on building, not balancing spreadsheets.
A fractional CFO helps build your financial model, prepare forecasts, clean up your reports, align your pitch with your numbers, and get all the due diligence materials ready. They also help you answer tough investor questions with confidence.
Ideally, at least 2–3 months before you plan to start pitching. This gives enough time to get your books in order, build your model, and craft a deck that reflects your financial story.
Investors fund confidence. A fractional CFO ensures your financials are credible, consistent, and well-prepared, reducing red flags and speeding up diligence. This can significantly improve your chances of getting a “yes.”
Any U.S. corporation with at least 25% foreign ownership, and any foreign-owned single-member LLC with U.S. operations, is likely required to file Form 5472, especially if they engage in reportable transactions with foreign entities.
Common reportable transactions include loans, payments for services, capital contributions, reimbursements, and management fees between a U.S. company and a foreign-related party.
You could face a minimum of $25,000 penalty per year. If you fail to respond to IRS follow-ups, the penalties may increase. Non-filing can also create issues during fundraising, audits, or acquisitions.
QuickBooks is accounting software that works through your web browser or mobile app. Small and mid-sized businesses use it to manage their daily finances - from creating invoices and tracking expenses to handling payroll and tax preparation. The software connects with U.S. banks, includes standard tax forms, and integrates with over 650 business applications.
QuickBooks has four main plans:
Simple Start: $38 monthly
Essentials: $74 monthly
Plus: $115 monthly
Advanced: $275 monthly
QuickBooks often runs promotions with significant discounts. Additional services like payroll require separate subscriptions. See QuickBooks Online Pricing & Free Trial
The software provides essential accounting and business management tools. Standard features include:
Intuit provides a tool to help Desktop users switch to QuickBooks Online. The tool transfers your customers, vendors, account balances, and transactions. Check Intuit's migration guide first, as some advanced features may not transfer over to the online version. See: Migration Tool
QuickBooks connects with more than 650 business applications. This includes popular tools for customer management, online stores, project tracking, and tax preparation like TurboTax. These integrations streamline your workflow by connecting your business tools in one system. See: QuickBooks Integrations
QuickBooks Payments lets you accept credit cards, debit cards, ACH transfers, and Apple Pay. All payments automatically record in your QuickBooks account, eliminating manual entry. Transaction fees apply. See: QuickBooks Payments
Yes, QuickBooks offers payroll as an add-on service with different plans for U.S. businesses. The service handles direct deposits, tax calculations, and IRS filings. All payroll data integrates directly with your QuickBooks accounting. Choose from Core, Premium, or Elite plans based on your needs. See: QuickBooks Payroll Services
Yes - the Essentials, Plus, and Advanced plans let you work in multiple currencies. QuickBooks handles the exchange rates and tracks any gains or losses from currency changes. See: Multicurrency in QuickBooks
QuickBooks generates standard financial reports, including:
The Advanced plan includes more customization options for reporting. See: QuickBooks Reporting
QuickBooks uses bank-grade encryption and automatically backs up your data. Intuit stores everything on secure servers and runs regular security audits. You can also enable two-factor authentication for additional protection. See: QuickBooks Security
QuickBooks offers a separate version called QuickBooks Self-Employed. This version focuses on what freelancers and contractors need most - tracking income and expenses, sending invoices, and preparing for taxes. It connects with TurboTax for easier tax filing. See: QuickBooks for Self-Employed
Yes, each plan allows a different number of users:
You can control what each person can access in the system.
QuickBooks connects directly to your bank accounts and credit cards to import transactions automatically. This keeps your records current and reduces manual data entry. See: Importing Bank Transactions
While QuickBooks works for most general business needs, it doesn't have industry-specific versions. Some businesses, like construction or manufacturing, might need additional apps or integrations for specialized features.
QuickBooks provides support through live chat, phone support, and online tutorials. Advanced plan users get a dedicated account manager. For specialized help, you can work with a certified QuickBooks ProAdvisor. See: QuickBooks Support
Yes, QuickBooks has an app for iOS and Android devices. You can create invoices, track expenses, and log miles from your phone. See: Mobile app
QuickBooks helps organize your tax information through expense categorization and tax reports. Its integration with TurboTax makes filing easier for both businesses and self-employed users. See: TurboTax Integration
Tax-focused bookkeeping services include recording all business income and expenses, reconciling bank and credit card accounts, organizing the general ledger, and preparing tax-ready financial reports like the P&L and balance sheet. Some also help with 1099s and coordinate with your CPA.
Your books are tax-ready if:
If you're behind on your books, unsure how to prepare reports, or experiencing growth and complexity in your finances, it’s time to hire a professional. Don’t try to clean up months of data right before tax time.
Discover how Function streamlines your finances and scales with you at every stage.
Start with Function