The short answer
- Bookkeeping is the record of every transaction of the company. Tax returns, Form 5472 and answers to the IRS all start from it.
- The IRS lists two basic accounting methods: cash, where income and expenses count when money moves, and accrual, where they count when earned or incurred.
- For a foreign-owned single-member LLC, payments between the LLC and its owner are reportable transactions on Form 5472, so the books must record them separately.
- Tax records must generally be kept for at least 3 years from filing, and indefinitely if no return was ever filed.
- At MyUSAService, bookkeeping costs $279 per month (price as of September 2026).
Table of contents
Many founders abroad leave bookkeeping for the end of the year, when a tax preparer asks for numbers. By then the transactions of twelve months have to be reconstructed from bank statements, and mistakes are expensive to find.
This guide explains what bookkeeping for a U.S. company owned from abroad covers, why it matters more when you are not in the United States, and what to look for in a provider.
What bookkeeping is, and what it is not
Bookkeeping records every transaction of the company: money in, money out, what is owed and what is due. Accounting builds on that record to produce reports and prepare tax returns.
The IRS explains why the record matters. Good records help you identify the source of your receipts, keep track of deductible expenses and prepare your tax returns. They also support the numbers on your returns if the IRS asks about them.
Why it matters more for a foreign-owned company
Form 5472 depends on the books. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 when it has reportable transactions with its owner or other related parties. Money the owner puts into the LLC, takes out of it, or pays on its behalf is exactly what has to be reported. If the books mix these payments with ordinary business income and expenses, the return cannot be prepared correctly. See our guide on zero-revenue U.S. companies for what counts.
You cannot fix it in person. A missing receipt or an unexplained transfer is hard to solve from another time zone, months later.
Banks and platforms ask for consistency. The same figures should match across your returns, your bank statements and your books. Consistency is also what makes an IRS review easier to handle.
What a bookkeeping service normally covers
- Categorizing transactions into income, expenses, owner contributions and owner withdrawals.
- Bank and credit card reconciliation, which compares your records with the statements to catch missing or duplicated entries.
- Accounts receivable and payable, so you know what customers owe you and what you owe suppliers.
- Monthly financial statements: profit and loss, balance sheet and cash flow.
- Support for tax preparation, so the preparer receives organized records.
- Cleanup of past periods, when the books were not kept.
Cash or accrual
The IRS describes two basic accounting methods.
- Cash method: you report income in the year you receive it and generally deduct expenses in the year you pay them.
- Accrual method: you generally report income in the year you earn it, even if you are paid later, and deduct expenses when you incur them.
Most small service and online businesses use the cash method. Companies that hold inventory, or that have larger sales, may need the accrual method. The method is chosen when you file your first tax return, so decide it with your tax professional before then.
How long to keep records
The IRS ties record retention to the period during which it can assess tax. In most cases, keep records for 3 years from filing. The period is longer in specific cases, and indefinite if a return was never filed. Keep invoices, receipts, bank statements, contracts and the documents behind every figure.
Separate business and personal money
Keep the company’s money in the company’s account and use it only for company expenses. It makes the books simpler and keeps the reportable transactions of a foreign-owned LLC easy to identify. Our article on hidden costs shows how bookkeeping fits into the yearly budget.
How to choose a bookkeeping provider
- Ask what is included in the monthly price and what is charged separately.
- Ask whether the provider knows foreign-owned LLCs and Form 5472 transactions.
- Ask how they handle cleanup of past months and how they price it.
- Ask what reports you receive and how often.
- Check that they work with the person who prepares your tax returns.
What it costs with MyUSAService
MyUSAService bookkeeping costs $279 per month. For companies with past periods to fix, ask for a quote before work starts. Tax returns are separate: from $951 for a single-member LLC or a C corporation, and $951 plus $150 for each Schedule K-1 for a partnership. Prices as of September 2026.
Read also our guide to U.S. business taxes for the filings the books support.
Frequently asked questions
Do I need bookkeeping if my LLC has no income?
Yes, if there are transactions. Money paid for state fees or a registered agent, or contributed by the owner, can be a reportable transaction for a foreign-owned single-member LLC.
Can I do my own bookkeeping?
Yes, if you keep it consistent, reconcile your accounts and separate personal from business money. Many owners abroad use a provider to avoid mistakes that only appear at tax time.
Cash or accrual: which method should I use?
Many small service businesses use the cash method. The choice depends on inventory and size, and it is set with your first return. Ask a tax professional.
How long should I keep my bookkeeping records?
Generally at least 3 years from filing, longer in specific cases, and indefinitely if you never filed.
How much does bookkeeping cost at MyUSAService?
$279 per month, at September 2026 prices.
Need bookkeeping for your U.S. company?
Talk for 30 minutes, free of charge, with a MyUSAService consultant.
- No obligation
- Consultation in English
- 30 minutes
- We explain what your LLC needs to keep records of
Sources
- IRS, Publication 583, Starting a Business and Keeping Records
- IRS, How long should I keep records?
- IRS, Instructions for Form 5472
First published January 5, 2026. This article is general information, not tax advice for your situation. Bookkeeping and accounting | Book a free call
Guide to U.S. Business Taxes for Non-Resident Owners
Inactive LLC Tax Return: Do You File With Zero Revenue?
Avoid IRS Penalties and Audits: A Guide for Owners Abroad
Hidden Costs of a U.S. LLC for International Entrepreneurs