If you’re raising a Series A in 2026, the pitch deck matters less than the spreadsheet behind it.
July 6, 2026 is the final date to file amended returns and claim retroactive federal R&D tax credits for tax years 2022, 2023, and 2024. If you miss this deadline, you permanently lose the ability to claim those credits for those years. For many startups, this represents hundreds of thousands of dollars in refundable cash.
Yes. If your company has less than $5 million in gross receipts and fewer than five years of revenue history, you may apply the R&D credit against employer payroll taxes instead of income taxes. This is called the payroll tax offset. Under the updated rules, the cap has increased to $500,000 per year, meaning early-stage startups can generate real cash flow even if they are not profitable.
Generally, activities qualify if they involve technical uncertainty and a process of experimentation. This often includes core software development, algorithm design, AI/ML model training, system architecture work, and performance optimization. Routine maintenance, cosmetic updates, and basic support functions typically do not qualify. The key test is whether your team was trying to solve a technical problem where the solution was not obvious at the outset.
It depends on your engineering payroll. As a rough estimate, startups often generate credits equal to 10–14% of qualified wages. For example, five engineers earning $150,000 each with most of their time spent on product development could generate $60,000–$84,000 per year in credits. Over three retroactive years, that could total $180,000–$250,000 or more.
Documentation standards have tightened. When filing amended R&D claims, Section G reporting is now mandatory. This requires detailed descriptions of projects, identification of technical uncertainty, documentation of experimentation processes, and defensible wage allocations by employee and activity. The IRS expects specificity and consistency, so preparing documentation early is critical to protecting the credit.
The Rule of 40 adds your revenue growth rate to your profit margin. If the total is 40% or higher, you’re generally seen as balancing growth and efficiency. In 2026, this has become one of the clearest indicators separating fundable startups from unsustainable ones.
It may not be strong enough for a competitive Series A. Benchmarks now suggest 4:1 is the healthier target. Investors want to see durable customer economics and efficient acquisition, not aggressive spending masked by short-term growth.
Extremely important. Companies with NRR above 120% are significantly more attractive because they grow from expansion within their existing customer base. High retention signals strong product-market fit and long-term scalability.
Burn multiple measures how much net burn is required to generate each dollar of new ARR. A lower number indicates capital efficiency. Spending $3 to generate $1 in ARR raises red flags in 2026’s funding climate.
It means you can grow revenue while maintaining control over costs. Investors want to see predictable acquisition channels, healthy margins, strong retention, and a clear path to sustainable scale, not just rapid top-line growth.
The main enacted changes are from the One Big Beautiful Bill Act, including restoration of immediate spending for R&D and other investment incentives. Other rules often discussed like broad tax cuts beyond existing law, may still be proposals.
Tariffs are taxes on imports, not business income taxes. They don’t change your federal corporate tax liability directly, but they can affect your costs and supply chain economics if you rely on imported components.
It depends on your situation. Provisions like full expensing of certain expenditures can reduce taxable income, but broad tax rate changes for all companies haven’t been enacted beyond OBBBA’s provisions.
Not necessarily. Some changes benefit specific deductions and business expenses. Individual taxpayers may see changes like expanded deductions, but overall tax burden depends on your company’s and your personal tax profile.
Yes, tax policy is still evolving, and regulatory guidance for OBBBA provisions is rolling out throughout the year. Monitoring IRS updates and working with a tax professional is essential for staying ahead
It depends on your business size, complexity, and growth plans. Freelancers can be affordable for simple bookkeeping needs, while firms offer more structure, support, and scalability.
Freelancers may charge between $25–$75 per hour or offer flat monthly rates depending on workload. Always clarify what’s included, such as reconciliations, monthly closes, and tax coordination.
Yes. Many startups begin with freelancers and transition to a firm as financial complexity and investor expectations increase. The key is switching before bookkeeping becomes a bottleneck.
Look for industry experience, consistency in delivery, familiarity with tools like QuickBooks or Xero, and the ability to support your business as it grows, not just record transactions.
A cash flow forecast is a projection of your future cash inflows and outflows, helping you predict your cash position over time. It’s critical for decision-making, managing runway, and preventing cash shortages.
Early-stage startups should review forecasts at least monthly, and more frequently if they’re pre-revenue, fundraising, or growing quickly.
Profit reflects your income after expenses on paper. Cash flow shows what’s actually in your bank account. You can be profitable but still run out of cash if your revenue is delayed or expenses spike.
Any U.S. business that paid $600 or more to a nonemployee (individual, sole proprietor, partnership, or LLC) for services during the tax year.
Service-based payments like freelance work, consulting, commissions, or attorney fees. Not for product purchases or employee wages.
Penalties range from $60 to $310 per form depending on how late you file. Ignoring the form entirely can cost even more—up to $630 per form.
Because agencies manage a blend of project and retainer income, subcontractors, and tight cash flows, they need more nuanced revenue tracking and expense categorization than product-based businesses.
Accurate revenue recognition, clean contractor tracking, expense categorization, and a chart of accounts tailored to how your agency earns and spends money.
By reviewing reports monthly, staying on top of invoicing and payables, and working with a bookkeeper who understands the specific needs of agencies.
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