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THE APRIL 18TH TAX DEADLINE IS APPROACHING FAST
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THE APRIL 18TH TAX DEADLINE IS APPROACHING FAST
DON'T FORGET TO CLAIM YOUR R&D TAX CREDIT! BOOK A CALL TODAY
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Days
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July 11, 2022
1 min read
As a startup, there are countless lessons we’ve learned. In a sea of missteps and failures, the Neo.Tax team has grown. Making it even more exciting when we can pass some of what we’ve learned to those who might need a few tips and tricks.
As many stories now begin, this month our Startup Tip started with a text.
A friend and fellow founder reached out to Neo.Tax co-founder, Firas Abuzaid, wanting a little advice on how to handle company expenses come tax time.
The Question:
How should our company handle the accounting for expenses like meals and gas that we charge to a company card?
The Tip:
To future-proof your company for tax time, make all your company purchases using a company card that allows for integration with your tax and accounting software.
You can sync your expenses yourself or outsource your bookkeeping. Though hiring a bookkeeper or a fractional CRO shop like AbstractOps or OpStart comes at a cost. More than likely you won’t need to outsource until you’ve raised a seed round or have more capital.
The Recap:
Share this tip with someone who might need it, or keep it for yourself. Do you have a tip for Startups? Continue the conversation in the comments.
For more monthly Startup Tips, follow us on Twitter and sign up for our newsletter.
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At Neo.Tax, we talk to scores of controllers and Heads of Tax every month. One thing is clear: the old way of filing for R&D Tax Credits has become a burdensome pain. You’d think that so many businesses moving their project management and payroll online, via software like Jira, Rippling, and Workday would simplify the filing process. But, in some ways, it’s made it harder.
The payroll and project management output is a rich dataset, but it’s also, well, voluminous. If that data is not inputted perfectly—and let’s be honest, it never is—that means it’s up to a controller or Head of Tax to sift through the mess to create the filing. Engineers need to be trained (and retrained) on the correct project tagging process, and then cajoled to sort out any inputting errors. It’s a waste of time for your filer and your engineering teams.
Which is why Neo.Tax created our AI system.
No one starts a company because they’re excited about accounting and taxes. Well, no one except the Neo.Tax founders :)
But for those other 99% of founders, here’s a cheat sheet and guide to ASC 350-40, an accounting guideline that pertains to Internal-Use Software Development Costs. Maybe you’ve never heard of ASC 350-40, but you should get to know the rule if you ever plan to go public.
