R&D

In the realm of accounting and tax planning, the concepts of book and tax depreciation often intertwine yet differ fundamentally, impacting financial statements and tax liabilities in distinct ways. Book depreciation, used in financial reporting, follows accounting principles to spread the cost of an asset over its useful life. In contrast, tax depreciation, guided by […]

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

When it comes to your taxes, your AGI is arguably more important than your gross income. After all, your tax burden is not calculated based on your gross income. Instead, the IRS subtracts some adjustments from your gross income to arrive at your adjusted gross income. This is what is used to calculate your tax

As an accountant, you know that change is inevitable in your industry. Whether it’s updating tax codes or new disruptive technology, it’s vital to stay on top of the trends in your industry. If you want to learn about the accounting trends in the coming year, you’re in the right place. In this guide, we’ll

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 2024 — keep reading to discover the best funding options

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

In the dynamic and ever-changing world of business, the significance of technology in refining and optimizing processes is paramount, especially in the accounting sector. The emergence of Artificial Intelligence (AI) has marked a significant turning point in this area. AI is revolutionizing the way accounting firms function and is significantly enhancing the caliber and range

In the world of technology and business, internal use software (IUS) is emerging as a critical component in research and development (R&D) tax credits, offering a unique tax advantage to medium and large companies seeking to modernize their IT infrastructure. The shift away from legacy systems, which often comprise a significant portion of IT budgets

In the quest for maximizing benefits from Research and Development (R&D) tax credits, choosing the right agency is crucial, particularly for businesses in Texas looking to navigate the complexities of tax laws and regulations. Texas, a hub for innovation and business growth, hosts a variety of agencies specializing in R&D tax credits, each offering unique

Navigating the complexities of the Employee Retention Credit (ERC) can be daunting, especially when it comes to adhering to its critical deadlines. The ERC, a significant relief measure for businesses grappling with the challenges posed by economic disruptions, offers a valuable tax credit to those who qualify. However, the key to leveraging this benefit lies

Starting in tax year 2022, R&D expenses must be amortized over a period of five years instead of deducting the expenses in the year incurred. Any foreign R&D expenses must be amortized over a period of 15 years. The requirement to amortize expenses is independent of the ability to claim the R&D tax credit. You

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 their alternative minimum and payroll

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 on claiming credits for past

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 to these changes, it’s more

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 requirements compared to traditional methods

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 of five years. This change

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 TCJA introduced changes that require

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 what kinds of expenses count

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 later on.  But what kind

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 form. It’s up to you

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 some links to our team’s

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 ways: Franchise tax credits and

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 almost impossible. Accounting CRMs offer

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 company incurs during research and

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 way that the government incentivizes

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 your profit in your pocket!

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, not everything is clearly defined.

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 question is integral to keeping

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. So what’s the difference between

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 bad thing. In this article,

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 technology changing? And how can

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 receive IRS letters, it’s essential

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 do you take advantage of

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 to explore them all! Related:

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 to gather documents, ask for

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 which niches are worthwhile.  Let’s

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 thrive.  Here, you’ll find a

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 by how much? To figure

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 1, 2022, IRC Section 174

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

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,

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