While accounting firms are often responsible for helping clients claim research and development (R&D) tax credits, accountants can also file an R&D tax credit claim for their own business activities. Contrary to popular belief, R&D tax credits are not limited to the sciences, and accounting firms are one of several sectors that may be eligible to claim them. We review several activities accountants can use as part of their R&D tax credit claim.
Incorporating New Technologies
An easy way to increase your chances of receiving research and development tax credits is to adopt new technology into your organization. There are several technologies accounting firms can incorporate to improve work functions, including:
- Cloud-based technology
Cloud-based technology accounting firms with a slew of benefits, including increased accessibility to data, constant software updates, and easier collaboration with co-workers and clients. Clients may also benefit from cloud computing services through reduced expenses, easier service accessibility, faster response times, and quicker problem resolution.
- CRM Software
Customer relationship management (CRM) software compiles and manages customer interactions and data. Further, many CRM software programs allow you to automate workflows and reduce time spent on manual, repetitive tasks.
- Mobile accounting
Accountants with a mobile accounting app can access several perks, including tracking income and expenses from anywhere. Additional benefits include easier file-sharing, improved data accuracy, and tax compliance. Furthermore, mobile apps make it easier to comply with tax laws by compiling all financial information in one place.
Designing New Methods to Improve Workflow
Another way businesses can improve their chances of claiming R&D tax credits is by designing new methods to enhance workflows. One of the ways to do so is to automate administrative tasks such as data entry, check running, and bookkeeping. Automating tasks saves accounting firms labor costs and allows them to improve service, which can be helpful during busy periods.
Report Titles and Job Descriptions of R&D Activities
Once a business uses R&D to improve its business, it must properly report activity to the IRS. Accounting firms do not need a dedicated research and development department to qualify for tax credits. Companies must prove that they are engaging in R&D activities and report the job titles of every staff member involved. Most job titles can qualify for the tax credit claim if the business can prove that the person participated in research and development.
Accountants can join their clients to claim research and development tax credits. However, claiming R&D tax credits can be complex and time-consuming. MainStreet can help your accounting firm save time by searching every tax credit and determining which ones your organization qualifies for. Contact us today to start saving money!