Small Business Accountant – It’s all about TAX credits
Small Business Accountant Fort Collins R&D TAX Credits – Part Two Transcription
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These renewable energy type companies, what type of companies are they?
There’s one that designs a lot of different things that are related to natural gas and how to burn it more efficiently and how to package it better. So they’re mostly an engineering company. They don’t manufacture they subcontracted out. There is that type of industry.
What is The Nature of the Accounting Work You Do For Renewable Energy Research Companies?
As a small business accountant working for them.
What’s the nature of the kind of work that you do for them and what kind of challenges, what’s unique to their type of business? What type of challenges do they have?
For them, there’s a lot of research and development every year. Designing new products.
I’m constantly working with them for research and development credits. In order to qualify, you need to go through four gates, which you have to be able to document what you’ve done, how you’ve done it, and what different methodologies you used.
Failure is actually a good thing when it comes to R and D credits to show that you’re testing and, and doing the scientific methodology to get to your end process. And it could be a process, or it could be a product. There are a lot of different pieces to it.
Do they naturally know how to do that, or is that something you have to help them with a lot or…
There’s definitely some help that needs to happen. And depending upon the size of the product and the project, because some of them are, are, are large. A lot of times small businesses in general, don’t even realize what they’re doing R and D. We document those and help them through those pieces.
$5-$100,000 Tax Credits – It’s Crazy!
What are we talking about in terms of credits? I mean, what kind of amounts of money are at stake?
It depends upon how much is done. Just this year, I’ve got one client that is getting roughly $50,000 and another client that’s getting about $100,000 in R and D credits. Those are the big ones. Some of the smaller ones are $5-15,000. The one that got a hundred thousand dollars, and there are probably about 20 hours of work into that job.
It’s a credit on their tax returns. Much of what we do is credit. This year thousands of them have. It’s crazy. So, yes.
