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 :)

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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.

Saved Weeks of Engineering+Accounting Time

• Eng Reviewed R&D in <1 hr each. No meetings, no calls required
• “I can’t imagine doing the R&D tax credit manually”

“More accurate, higher quality” Study vs Top 10 CPA Firm

• Rigorous Narratives for all 50 projects
• R&D Credit done in <1 month total

Confidently Claimed Larger Credit 

• Increased R&D Credit YoY
• “The final study was over 500 pages. That’s a lot of support. That’s a lot of backup. And I think that’s exactly what you need for the IRS”

Smooth Financial Audit 

• Auditors loved the ticket-driven method + granularity 
• “Low burden…went smoothly because we had the backup”