Research and Development

New businesses and startups have the opportunity to utilize the R&D tax credit to reduce their payroll taxes for a period of up to five years. This tax credit was made permanent through the PATH Act of 2015. This act introduced several improvements, including provisions allowing eligible businesses to offset

Research and Development (R&D) tax credits can be claimed for specific types of expenses incurred during your financial year. The government provides these incentives to support innovative businesses that take risks in their pursuit of new ideas. If your company is new to these incentives, you may have missed out

Taxes and the laws governing them are constantly changing, as made evident in the recent changes to how companies have to handle their R&D costs. Previously, businesses could write off those costs immediately; however, they now must capitalize their R&D costs and view them as assets instead of expenses. Due

Understanding and efficiently using R&D tax credits can greatly benefit your business, and the Alternative Simplified Credit (ASC) is one such method that can make this possible. This article delves into the intricacies of ASC.  This method allows a broader range of companies to participate due to its less stringent

It is important to have an understanding of the complexities surrounding Research and Development (R&D) expenses and their amortization in the evolving business tax environment we have today. Beginning in 2022, new regulations stipulate that these expenses need to be accounted for as assets and spread out over a period

Taxpayers face significant changes in the treatment of research or experimental (R&E) expenditures under Section 174 due to the Tax Cuts and Jobs Act (TCJA). This article explores the implications of the new capitalization rules and provides guidance on documenting R&E expenses accurately for tax purposes. Understanding the Changes The

Businesses have the opportunity to reduce their tax liabilities by determining their qualified research expenses (QREs) and claiming them as a deduction through the federal research and development (R&D) tax credit program. Companies that want to take advantage of this dollar-for-dollar reduction absolutely need to have a solid understanding of

Claiming the R&D tax credit can be an effective way to reduce your federal tax liability if your business engages in research and development. But in order to do this, you need to support the expenses you are claiming properly. Doing so is critical and mandatory to avoid an issue

Should you be paying quarterly taxes? If you have a business, whether you do freelance work, are a sole proprietor, or own a corporation, the answer is likely yes. When you run a business, taxes can get tricky quickly — there’s no one paying taxes for you per a W4

A balance sheet shows your business’s equity at any given time, showing your company’s worth considering its debts and liabilities — essential information for everyone to have on hand. We’ll discuss how a balance sheet works and what type of items your business needs to list and leave you with

When we mention the R&D tax credit, you might think of the federal program that incentivizes US businesses to improve or develop new products and processes. However, many states also offer this incentive — and Texas approaches it a little differently than others. Texas offers R&D incentives in two different

Has your accounting firm gone paperless? If so, you’re not alone — businesses worldwide are moving their data into customer relationship management (CRM) platforms to better manage their information and streamline their accounting processes. However, if you’re still relying on paper forms and old-fashioned methods, scaling your accounting business is

Software development is an innovative field; devs transform business operations and create products driving productivity and efficiency across industries. Many don’t know that most software development companies can qualify for the federal R&D tax credit, providing significant saving opportunities for a range of businesses. Most expenses that your software development

The R&D credit helps businesses reduce their tax liability based on their qualified research expenses (QREs), but determining which expenses qualify can be confusing. Keep reading to see if your research expenses qualify for the R&D tax credit. What Is the R&D Credit?  The federal R&D tax credit is a

As a small business owner, tax season is never fun. But with better tax planning, you can take advantage of deductions and credits that can help reduce your business’s tax burden. These seven strategies discuss the do’s and don’ts of small business tax planning, so you can keep more of

When looking at the tax code, instructions, and other forms, you’ll come across a number of different terms, some of which are easy to understand and some which aren’t. The IRS even knows this as they make an effort to include glossaries and definitions with some of their publications.  Unfortunately,

Did you know that the total global debt of non-financial corporations has reached a staggering $87 trillion? However, debt (and any other company’s financial obligations) are okay. The reality is that these liabilities are an essential part of running a business.  But precisely what are liabilities in accounting? Understanding this

If you’re like most people, the only context you hear debit or credit applied to is at a cash register or bank account. But the reality is that debits and credits are vital to business transactions and the accounting that tracks these transactions.  That’s why they’re both crucial to understanding.

Did you know the global AI market is worth an estimated $327 billion? Many people think that AI is only confined to IT applications. But the reality is that the artificial intelligence behemoth has its tentacles in nearly every industry, including accounting.  And the good news is that’s not a

Gone are the days when bookkeeping was confined to actual books. These days, like most industries, accounting has turned to technology to streamline efficiency and save costs.  However, the use of accounting technology is constantly changing as new interfaces and advancements are being applied each year. So how is accounting

Many people think that they’re immune to IRS notices. After all, doesn’t the IRS usually target wealthy individuals and businesses? Sadly, that’s not the case.  Since these targets require investigation and litigation, the IRS focuses on low-income wage earners and small businesses five times more than other parties. If you

If you’re like most home and business owners, you likely don’t concern yourself with the intricacies of tax codes. However, that might be a mistake. Certain tax codes, like the Augusta Rule, can provide exemptions on taxable rental income.  But exactly what is the Augusta Rule for taxes? And how

Everyone needs goals. Setting goals can improve your productivity at work and generally has a positive impact on mental health.  If you are an accountant looking for good goals to set, we’ve got you covered. We created a list of ten example goals that any accountant can use. Read on

You’ve completed all the steps needed to secure your next accounting client. But once you do this, you need to make sure you complete a few more steps to get them ready. The onboarding stage for accounting clients can be more overwhelming than in other industries.  After all, you need

It takes a lot to achieve success in accounting. This is why many accounting firms and startups seek something to provide an edge over their competitors. One of these is entering a niche.  Entering an accounting niche provides a range of unique benefits. However, it can be tough to determine

Making your mark in accounting can be incredibly rewarding but is difficult, especially when just starting. The industry has become more competitive; thus, many struggle to find their way and achieve success. However, if you go into the business with a good plan, you can not only survive, you can

Profit and loss are one of the most basic business concepts. But when tax time comes, these simple concepts can get much more complicated. This happens because the amount of profit or loss you have from the sale of an asset directly affects your tax bill. But by how and

Since 1954 business owners have had the option to deduct certain expenses in the year that they incurred them. This was a critical way many offset the costs of researching and developing new products; it drove innovation in many industries.  But, as of now, the rules have changed. Effective January

There are two vital parts to a successful month-end close (especially for startups and SaaS companies): Revenue recognition and revenue reconciliation. Many startups make the mistake of focusing on recognizing and recording transactions, skipping the reconciliation process — a crucial accounting step. We’ll discuss the basics of revenue recognition and

More new businesses were launched in 2021 and 2022 than ever before. Owning a small business lets you go after what matters most to you in a meaningful and impactful way, but it’s also a scary venture for new entrepreneurs. Beginning the process with an idea of the common pitfalls

The R&D tax credit is vital to keeping companies at the forefront of innovation by rewarding companies that develop new processes and products. In 2020, California suspended its R&D tax incentives due to the economic shock following the pandemic. However, the state recently had a budget surplus, and in February

The Employee Retention Credit (ERC) encouraged businesses to keep their employees on payroll during the height of the pandemic. However, the IRS has some new information for us as the economy tightens. Related: What Is the ERC? In October 2022, the IRS warned taxpayers about third parties promoting claiming enormous

While businesses can no longer pay wages to claim the federal Employee Retention Credit (ERC), they have until 2024 to look back on their payroll throughout the pandemic and claim the credit retroactively. The ERC program may have ended, but that doesn’t mean businesses can’t still claim the credit —

Before you apply for the Scientific Research and Experimental Development credit, it’s important to understand its requirements. If you’re wondering if the SR&ED program can benefit your businesses, if your projects qualify, how the Canada Revenue Agency (CRA) determines eligibility, how this tax incentive program works, or how to claim

It’s an exciting time in your startup business, and having a good bank to support you is vital to your success. That’s why having a one-stop-shop bank for your needs will keep you worry-free about finances as your company blossoms. The best banks will provide you with free or low

Accounting will prove to be a large part of the process of a startup. In comparison, it is not a strict rule to focus large amounts of time and energy on accounting in the early stage of a business. Failure to properly manage and keep track of accounting can often

A business credit card is the ultimate weapon in the battle to keep your new business thriving. Cash back rewards, credit perks, and all the other needed tools that keep company growth a reality. Business credit cards aren’t just limited to more significant enterprises anymore, and small business credit cards

You might have heard that with a little bit of money spent and a couple of extra hours of preparation at the start, you can save yourself from several weeks of trouble and loss at the end. In many business cases, this proves to be absolutely true, more often than

Many aspects go into running a business. Bookkeeping is a crucial business component, as it can impact your business’s growth and success.  Bookkeeping encompasses various tasks, including data entry, filing taxes, and more. Where do you get started? Read this guide from Tax Robot to learn how to start bookkeeping

Over 23,000 startups have received seed funding from 2016-2020, which has grown exponentially compared to the decade before. Many businesses see the value of bringing in investors early to help launch their businesses right vs. bootstraps. We’ll explore why pre-seed money is good and how to attract pre-seed investors to your startup

When preparing to raise venture capital, businesses need a dialed-in pitch that can wow potential investors. But VC time is precious, which leaves you limited time to sell your team and your business. That’s why your pitch deck needs to be efficient and concise. We’ll cover how to build a

The Work Opportunity Tax Credit (WOTC) program is a federal tax credit that employers can use when they hire people from specific target demographics, such as disabled individuals. In the past, these workers have experienced barriers to employment. However, there are certain rules that employers must follow to access these

With an estimated 19 million US veterans, the United States strives to help its Armed Forces veterans find gainful employment once they are discharged. To do this, the federal government offers significant tax credits to companies that employ military veterans. To qualify for these credits, a business needs to jump through

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, businesses could defer their employer portion of payroll taxes from 2020 until 2021 and 2022. Over 1,026,282 employers took advantage of this deferral during the economic burden caused by COVID-19. President Joe Biden extended the payroll tax deferral as part of

If you’ve received an IRS CP2100 Notice or a CP2100A Notice, don’t worry. These mistakes can be remedied. With some work and know-how, you can send a 1099 IRS B Notice to your payees well within the fifteen-day period.  By following our 1099 IRS B Notice step-by-step guide, you’ll confidently send the necessary

If you have a business, you may qualify for a tax incentive from the IRS for hiring those individuals with disabilities. The government uses tax credits to encourage employers to hire people who might have faced employment challenges in the past. When businesses try to hire these qualified workers, they

Tax season is often a frustrating and nerve-wracking time. You may be concerned about owing money or filling out your paperwork correctly to ensure you maximize your return. The tax system is full of legal jargon and forms that can be difficult for anyone who’s not an accountant to understand

According to the current tax code, minority-owned businesses have no specific incentives, but entrepreneurs can take advantage of certain tax breaks and credits. There are several recognized minority groups; they include: Black/African Americans Hispanic/Latino Americans Asian Americans Arab Americans/ Middle Eastern Americans Native Americans/Alaska Natives Native Hawaiians/Pacific Islanders Are you

The federal government introduced two acts (CARES and FFCRA) to help businesses affected by the pandemic find relief. Both of these acts allow certain companies to claim a credit on their tax returns with IRS Form 7200. We’ll explore what Form 7200 is, who can apply, a step-by-step guide to

Qualified small business owners can save come tax time by claiming credits like the R&D tax credit. We’ll walk you through this complete guide to filing Form 8974, claiming your R&D tax credit, and answer any questions you might have. Let’s start with the basics and define some of the