The R&D tax credit offers an invaluable opportunity for business owners in over 40 industries to reduce taxes and increase cash flow for qualifying research and development activities. Classified as a dollar-for-dollar credit, the R&D tax credit program pays approximately 10 billion dollars a year to companies of every size, making it one of the most significant incentives available for small- to mid-size business owners.
Beyond Experience Levels: What to Look for When Sourcing a Research Tax Professional
Unfortunately, every year thousands of eligible entrepreneurs and executives miss out on claiming viable R&D tax credits simply because they didn't know about the program and its federal qualifying guidelines. If you think your business's research initiatives may qualify your organization for this incentive, it's critical to find the right tax consultant to manage your project. An innovative, industry-leading research tax credit team will work hard for your business to pinpoint every possible expense, directly impacting your access to available capital and bottom-line profits.Of course, as in every industry, not all R&D tax firms are alike, making the screening process critical. Many business owners assume that a successful search boils down to a comparison of each firm's relevant experience and collective team qualifications. Not true. Yes, finding a well-established firm that specializes in R&D tax credits is an essential first step. However, sourcing the right provider requires more than reviewing a current list of certifications, awards, and degrees. As you move through the selection process, consider three essential indicators that you're working with a research tax team willing to give your business the time and attention needed for optimal ROI.
The right R&D tax credit professional will:
- Slow Down the Sales Process
The most successful R&D studies are a result of understanding qualification, risks, and outcomes before you sign the proposal. Look for more than assertions and promises.
- Proof of Value, Not Promises!
An R&D study is a complex project. First off, look for outside expertise and guidance. That’s easy, because there are plenty of consultants out there. The difficult part is choosing the right provider. Most providers have talented people and strong deliverables. Evaluate their approach to the project. Look for a team that’s willing to work with you to understand qualification, the risks, and the financial impact before receiving a signed proposal. It’s better to hit a landmine in the first two weeks vs. two months later after you’ve signed the engagement letter. Most importantly, source a firm that doesn't just want to tell you how the credit works, but makes an effort to show you. It's not enough for a provider to verbalize their extensive subject-matter knowledge in a one-way dialogue. Instead, the process should be fully collaborative. They should work with your team to gather relevant data and conduct interviewing necessary to support or refute moving forward with the project.
- Deliver Long-Term Value
Most importantly, the exceptional providers will be in it for the long haul. Look for a team that not only wants to help you file as many deductions as possible this year, but also wants to set your business up for optimized claims in future years. The right firm will offer a big-picture plan that outlines periodic sessions to keep your staff up-to-date on the credit, both to educate new hires as well as address any changes to legislation. Additionally, they will collaborate with your executives and stakeholders as needed for seamless tracking and documentation that ensures nothing gets overlooked in future years.
Acena Consulting: Innovative R&D Tax Advisors
Acena Consulting's comprehensive R&D tax credit services protect our clients' corporate interests, maximizing access to cash flow and driving bottom-line profits. Ready to experience the Acena difference for yourself? Contact us today to hear more.
