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 reconciliation, what they are, why …
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 to avoid is crucial to …
Funding options for your business can seem endless, whether you need short- or long-term financing or if your business is in the startup stage or already established in its industry. That’s why we’ve organized this list of the ten best business funding sources going into 2023 — keep reading to discover the best funding options …
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 2022, Governor Newsom signed into …
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 Employment Retention Credit (ERC) refunds …
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 — wages a business paid after …
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, you’re in the right …
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 account fee checking and savings, …
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 cause many issues later, further …
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 are made just for startups, …
BREX vs. RAMP: Find the Best Credit Card for Startups Read More »
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 not. Thoughtful planning has shown …
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 for your business. Related: Startup …
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 business. By leveraging early investors, …
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 successful VC pitch deck and …
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 credits. If you want an …
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 a few hoops fairly quickly …
When your small business is in the startup phase, it’s critical to take advantage of all the US tax incentives that apply to your business. Qualifying for government tax incentives can reduce your tax liability up to 30%. We’ll cover the different tax incentives available and why your business should leverage as many as possible. What …
What are Tax Incentives? Beginner’s Guide for 2023 Read More »
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 the American Rescue Plan Act. …
What is the Payroll Tax Deferral? CARES Act Breakdown Read More »
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 paperwork to ensure you follow …
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 can enjoy many tax breaks, …
Tax Credits for Hiring the Disabled: Incentivize Your Hiring Read More »
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 properly Tax season doesn’t have …
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 searching for additional resources to …
How Does the Federal Government Define a Minority Business? Read More »
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 filling out Form 7200, and …
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 forms, credits, and terms we’ll …
Income tax time is quickly approaching, and it’s time for everyone to begin thinking of how they can minimize their tax liability. For most businesses, tax time is full of stress, endless paperwork, and long nights spent pouring over the IRS tax instructions. Here at TaxRobot, we want to help make your life a little …
For many people, there is nothing more exciting than innovation. Inventors who are engaged in research and development activities have a unique opportunity to lower their tax bills, and it’s all thanks to IRC Section 174. Our tax system is full of technical jargon and complex intricacies, and it’s constantly changing. Even Section 174 isn’t …
IRC Section 174: Get Lower Tax Bill for Inventors Read More »
All the paperwork and technical jargon that comes with tax season make it a challenging time for people and businesses. Unless you’re going through a qualified accountant or tax preparer, you’re going to find yourself swimming in a sea of questions as you attempt to navigate the IRS’s tax instructions and explanations. One of the …
Tax season can loom over companies with all its paperwork, technicalities, and endless hard-to-decipher jargon. There’s a lot to learn about filing your taxes properly and maximizing your return. It’s important to understand the ins and outs of taxes, especially those areas that aren’t well known or understood. The research and experimentation tax credit was …
There are many questions surrounding the Employee Retention Tax Credit (ERC). Many companies understand the benefits, but several changes, requirements, qualifications, etc., can seem confusing. Today we will try and simplify this complicated subject and provide you with a guide to the ERC, including how the ERC works, wage qualifications, how to claim this tax …
What is the Employee Retention Credit (ERC)? Guide Read More »
When operating a business, there’s a lot of essential paperwork and tax filing that people must stay on top of throughout the year. With so many forms to file, it can be challenging for business owners to remember everything they need to handle, especially if they’re new to the game. In the resource below, our …
If your business has employees, your tax obligations include reporting your payroll and income taxes withheld from their paychecks. While large companies typically file Form 941, small businesses with less tax liability typically file a simpler form—Form 944. Related: Startups—Here’s how to get $250,000 From the IRS We’ll explain how to fill out each section …
As an employer within the United States, you are legally obligated to file a wide range of essential tax paperwork at different points throughout the year. With so much tax filing to stay on top of, our experts at TaxRobot understand how confusing and frustrating it can be to ensure everything is filed correctly and …
Whether you’re dealing with monthly, quarterly, or annual taxes for your business, there are many critical documents you need to fill out and deadlines you need to stay on top of to avoid receiving financial penalties from the Internal Revenue Service (IRS). Sadly, some of the critical tax documents that businesses need to file with …
The research and development tax credit (R&D tax credit) can help many startups and small businesses save on tax time. However, many business owners don’t claim it because they don’t think it applies to them or isn’t aware that it exists. Related: Government Loans for Startups & Small Businesses When you think about R&D, lab …
How to Calculate R&D Tax Credit [Guide & Calculator] Read More »
Filing tax forms as a business owner is a complicated, tedious, but essential part of operating successfully within the working world, especially if you’re filing with the hope of receiving decent tax returns or credits. Sadly, due to the complicated nature of filling out and filing many tax forms, it’s common for tax documentation to …
Most businesses that have employees must file Form 941 with the IRS each quarter to report and calculate their employment taxes. Completed IRS Form 941 will show you how much you still need to pay to cover your payroll tax responsibilities or how much you overpaid during the quarter. If you need to file Form …
If you’re a business owner who’s struggling to make ends meet, tax credits like the Employer Retention Credit (ERC) might be the answer. It’s more accessible than many other relief options like grants or loans. However, understanding how tax credits work can be confusing—don’t worry; we’ll explore everything you need to know about the ERC …
How to Calculate ERC Tax Credit [Guide & Calculator] Read More »
In a world where it seems like everything has already been invented, unique ideas are worthless if you don’t hone them. So, no matter what idea you have for your startup, you have to cultivate it. There are various approaches to growing a startup, including defining its development by lifecycle stages. We’ll explore the five …
Startup Stages: A Guide to Every Step of the Process Read More »
There are a massive range of complicated steps to take and factors to consider when it comes to launching a new startup in 2022. While not the most prominent element of consideration involved, a significant factor that startup developers need to carefully consider is whether or not the services of a startup consultant would be …
Developing a product for your startup is no less than an adventure. You’ll find challenges at every level and around every corner, from finding your audience and analyzing their demographics to creating and launching the right solution and everything in between. We’ll explore each aspect of the startup product development process, from ideation and design …
Product Development for Startups: How to Get Started Read More »
The key to building a strong sales team in any startup is creating the right sales hiring strategy. The sales rep turnover rate is at an all-time high—finding and retaining the best salespeople is crucial to the success of your new business. We’ll explore how and where to find the sales reps that will crush …
How to Find Sales Reps for Your Startup (That Will Crush It!) Read More »
Look at the biggest brands out there—how did they get to where they are? By understanding their competition and tracking their pricing. Knowing how your brand compares to your biggest competitors is the key to getting and staying on top. This is especially true when it comes to pricing. Your customers are more price-sensitive than …
How to Find Competitor Pricing: Track the Competition Easy Read More »
Developing a nonprofit startup isn’t an easy process, especially when getting the needed funding to get initial operations off the ground. Sadly, grants for nonprofit startups are notoriously competitive due to the limited number of grants available. To help you more easily navigate the complex realm of nonprofit startup grants, our team of passionate business …
When it comes to getting a loan for your startup or small business, you really only have two options: private loans or government loans. Getting a loan from a private lender before you have an established business isn’t easy— they are typically reluctant to take large risks. On the other hand, federal government loans were …
Federal Government Loans for Small Business & Startups Read More »
Opening a new business is not easy for anyone. Still, it’s a complicated process for immigrants and members of minorities, who often lack access to the same resources and support that U.S.-born citizens and non-minority individuals typically receive. But that doesn’t mean that opening a successful business as a minority or immigrant is impossible. It …
Small Business Grants for Immigrants & Minorities Guide Read More »
Startup valuation provides insight into the company’s ability to meet investor and customer expectations so that it can find new capital to grow. A startup valuation may factor in assets, business models, total addressable market, and the company’s expertise. Valuing a startup is both a science and art. Whether starting with a simple idea or …
Startup Valuation: How to Choose the Right Method Read More »
There are many perks to enjoy when working for a startup, including owning a piece of the company. Having equity in a company means you have a stake in the business. Startup equity motivates many workers to build and grow the business. These equity packages come in all shapes and sizes, and it is vital …
It can be challenging to find funding when you have a small business. There are solutions: small business grants. This free money is designated for startups, and it can help you get your ideas off the ground. These funds are available from federal, state, and private entities. Here are a few things you need to …
Small Business Grants: Best Funding Options Guide Read More »
Here’s a hard truth about startup funding — while you can’t spell funding without ‘fun,’ there’s not much fun involved in the process. Raising equity funding in the early stages is a long and difficult journey that can be demoralizing for many founders. However, if you do it successfully, you get to walk away with …
With the immense amount of work you do when launching a startup, it’s easy to overlook creating a founders’ agreement. You’re in this together, and you trust your co-founders, right? Won’t everything be fine? Even if you’ve known them for years and have complete trust in them, you still need to build a founders’ agreement. …
How to Build the Best Founders’ Agreement for Startups Read More »
Whether despite the significant economic and workforce issues over the past few years due to the COVID-19 pandemic or because of them, the United States Census Bureau recently noted that more applications were filed for new businesses in 2021 than in any other year on record. Nearly 5.4 million startup business applications were submitted, marking …
Are you starting a business and considering whether to do a sole proprietorship? We’ll explain everything you need to know about starting a sole proprietorship, advantages, disadvantages, taxes, and other common questions. What is a Sole Proprietorship? Sole proprietorships are unincorporated businesses run by a single individual. This is the most common form of small …
Disruptions in every industry are commonplace with the growth and development of technology and innovation. To be competitive in the current marketplace, start-ups must be innovative and integrate new technology into their operations. And for entrepreneurs looking to create start-ups within these new technologies, it’s critical to pick the next big thing that will drive …
7 “Next Big Thing” Innovations to Watch as a Start-up Read More »
Sales and marketing are two of the critical powerhouses behind what makes startups- or any business or company, for that matter- run successfully. Without sales, a startup can’t stay in business, and without marketing, no one will know about your products and services, so there will be no sales. Both are crucial for the operations …
If you have a great idea, you need money to get that dream off the ground. Securing financing might seem like an impossible task, but there are alternative ways to find the backing for your startup or small business. Private investors can help with financial matters while you work to build your company. Here is …
Private Investors for Startups: A Complete Guide Read More »
So you’re finally doing it, starting your business. It’s been in your head and heart for so long that you don’t even remember when you first imagined it. Now it’s time to make bold moves toward it. But what’s the first move to make? What’s the second? It can seem impossible to figure out. But …
Sometimes, it seems like every new startup begins with building a growth team. As founders realize that effective growth hacking can make or break a startup, they’ve focused more and more of their efforts on compiling an avengers team of growth hackers. Still, what many don’t realize is that an effective growth team is about …
How to Build the Best Growth Team for Your Startup Read More »
To find market success amid a sea of ever-growing industry competition, startups can’t just stumble from one terrible idea to the next while ineffectively planning their operations, poorly leveraging their resources, and creating random approaches for execution. Startups need to harness specialized tools and strategies for their processes that can help them stay afloat while …
You’ve poured blood, sweat, and tears into a product that you know can change consumers’ lives. The only problem? They don’t know that yet. But how do you get your target customer to realize the value of your business on a shoe-string budget? As with any aspect of a startup, your low budget for marketing …
Suppose you’ve been keeping up with any articles covering hot new tech-based services or apps over the past several years. In that case, you’ve likely encountered the word “disruption” being thrown around a lot, especially for companies in Silicon Valley. You may have also heard it applied to concepts within your own business! Despite this, …
Today’s businesses rely on data to formulate their growth strategies—data-driven and data-informed approaches are two unique ways you can leverage data to gain a competitive edge. Although the differences are subtle, each approach takes a different direction and changes how your company works with its available data. Related: How to Raise Venture Capital Taking a …
Data-Driven vs. Data-Informed: What’s the Difference? Read More »
If businesses want to stay afloat and succeed in the current age of widespread market competition, they need to pull out all possible stops. Especially when it comes to attracting the attention of customers, getting and keeping them engaged, convincing them to make purchases, and having them enjoy the entire experience. While more significant, more …
Customer Experience Map: Simple Steps to Build One Read More »
Measuring the results of your SaaS company can get confusing quickly. And unlike revenue, bookings do not have a GAAP standard definition—it varies across businesses. In general, bookings refer to a forward-looking metric that indicates a contract’s value over time. Let’s begin by discussing how this differs from revenue. Related: 5 Best Business Startup Tips …
The best way to grow your new startup business is to create and follow a solid digital marketing plan. We know that growing your startup is a significant undertaking and can be extremely challenging, especially without the right strategies. We’ll cover five tips that every startup can use to create a better digital marketing strategy …
5 Tips Entrepreneurs Need to Know for Digital Marketing Read More »
If You’re a Tech Founder, You’re Leaving $100k on the Table If you own a business that develops software or is in the tech industry, and you’ve never heard of the R&D tax credit, then you are leaving $10k+ on the table. Maybe even $100k+ on the table if you have raised a series A …
How Startup Technology Companies Qualify for the R&D Tax Credit Read More »
It can be an intimidating task when you want to build your own business. You want to create a successful company where employees will love to work. From the outside, it might seem like an impossible job. With the right tools, you can build a successful startup from the ground up. Let’s look at the …
If you’re the owner of a fledgling startup business that you’re doing your best to get off the ground, then the chances are that you’re looking into a wide range of different funding sources that can help you get operations going. You’ve probably heard a lot about venture capital and the vast array of benefits …
Every year, the United States Government gives billions of dollars to innovative companies and businesses for creating or improving current technologies, processes, materials, and products. These incentives are provided by the U.S. Research & Experimentation Tax Credit program or R&D tax credit for short. You may wonder why the government is willing to provide these …
Customer acquisition cost (CAC) is a vital metric used by businesses worldwide to determine the resources they need to continue growing by attracting new customers. If your company wants to expand its customer base while generating more revenue, it’s crucial to understand what CAC means, its importance, and how to calculate it. Related: Best Startup …
Do you need help funding your startup business? Are you wondering if a crowdfunding platform is a smart way to inject capital into your new business? We list the best crowdfunding options for getting your startup business off the ground. SeedInvest SeBest For Attracting VCs and Angels SeedInvest’s goal is to help initial-stage startups find …
Convertible debt (also called a convertible note) is a way for businesses and startups to inject capital into their operations. It’s typically in the form of short-term loans that are repaid with cash, and the remainder is converted into equity. There are many financial and legal implications associated with convertible debt, so it’s crucial to …
Developing your own business, launching a successful startup, or even growing a business after some level of early success can be a very challenging process, especially with the current state of the financial world. Every step of the business creation and growth process carries its complications and obstacles for people to overcome. Arguably the most …
Suppose you’re looking into potential venture capital (VC) sources to help support your budding startup or growing business operations. In that case, you must understand what venture partners are and what role they will ultimately play in your future business operations. But what are venture partners? And how do they impact your process of earning …
Venture Partner: a Critical Piece to Your Startup Read More »
The Research & Development Tax Credit—or the R&D Tax Credit—is a federal credit that incentivizes, dollar-for-dollar, companies to improve existing processes and products or develop new ones. Any company that performs qualified research activities in the US can use this credit to offset its tax liability. Any expenses that qualify for this tax credit are …
Qualified Research Expenses (QRE): A Complete Guide Read More »
Startup expenses for business can be costly; however, there is good news — you can use many of these costs to help reduce your business taxes. In your first year of business, you can deduct some of your startup costs. And others, you can spread out over several years. While it can be complicated, we’ll …
Filing taxes can be complicated enough for individuals. Still, the process becomes even more frustrating when you’re a business owner, especially a successful one that operates multiple departments within a complex industry. Thankfully, our experts at TaxRobot can ensure you get your business taxes done right the first time through our automated processes. Not only …
Starting a business is always an exciting adventure, but it can also bring about a lot of stress and frustration as you scramble and search for effective ways to get everything off the ground. And while that’s always been true, things have become even more difficult due to the global COVID-19 pandemic wreaking economic havoc …
Broad statements rarely fit everyone, but we’ve never met anyone eager to pay more than what is required when it comes to paying taxes. That’s where tax credits come in handy. Like research and development, certain activities can qualify businesses or individuals to offset a portion of their tax liability, effectively paying less in taxes. …
For years, many businesses were prevented from getting the full benefits from their R&D tax credits, even though they engaged in qualified activities. The reason for this problem was the alternative minimum tax (AMT). However, due to the PATH Act, many eligible small businesses (ESBs) no longer face that burden. The PATH Act includes provisions …
Each year, the government provides over $12 billion in tax incentives to thousands of businesses all over the nation. The R&D tax credit is one of the most lucrative tax incentives today. For the past forty years, it’s been helping businesses save hundreds of thousands of dollars in tax payments, and it can help yours …
Startups Can Get $250,000 From The IRS: Here’s How Read More »
Software companies transform business operations in numerous industries by creating products that fuel productivity and efficiency. In support of continued innovation, R&D tax credits are available to many organizations, providing substantial savings opportunities for a range of software companies. Many expenses that software companies incur through their research and development are eligible, including contractor development …
R&D Credits for Software Companies: What to Know Read More »
