SaaS Accountants with Solutions to Help You Scale
Technology and SaaS companies are experiencing radical change as more and more developers and competitors enter the market.
In the last decade, SaaS and technology companies represented the largest growth of the S&P (as of 2020) and are on pace to grow at a compound annual growth rate of 9% over the next five-year period. As smaller technology companies enter the space, sophisticated buyers have become more discerning in selecting technology partners, applying price pressure with the expectation of high-quality output.
With changes in the competitive landscape and how consumers and the developing world continue to move online, the industry has had to keep pace to become more efficient while improving quality to stay ahead of competition. This has required careful attention to agreements, unit costs, and budgets.
Proven Tax Strategies for SaaS Businesses
Our team at Tax Hack Accounting are specialists in reducing tax liability for SaaS companies. There are a variety of strategies we can help you implement to help boost your bottom line. One such strategy would be making use of Qualified Research Expenses (QREs). These can be used to offset payroll taxes on wages up to $250,000. Other strategies include deducting the costs of new hardware or deducting startup costs ($50,000) in your first year of business. Reach out to our team for a closer look at what opportunities are available for your business.
Most SaaS Businesses Can Take Advantage of the R&D Tax Credit
The R&D Tax Credit has always been a natural fit within the financial strategy of SaaS companies given that SaaS products are ever-evolving entities. For every activity that involves developing software, operating systems, databases, management systems, hardware integrations, or the like, there is an opportunity to reduce tax liability. Specific investments made in developing your software should be carefully documented. Accurate bookkeeping ensures that all qualifying costs, such as employee wages, materials, and third-party contractor expenses, are properly accounted for and can be substantiated when claiming the credit.
Accounting for SaaS Via Cutting-Edge Tools
Keeping pace with our clients dynamic needs is no easy task. That’s why we’ve meticulously crafted a suite of cutting-edge tools and metrics designed to empower tech companies. These resources enable you to gauge your progress against self-established goals and benchmark your performance against industry standards.
To ensure we stay ahead of the curve with our clients, we’ve introduced an advisory program dedicated to delivering a superior client experience consistently. Our time-tested method for achieving a successful On-Ramp encompasses:
- Prior Year Tax Return Review Covering Missed Strategy and Deductions
- QuickBooks, Xero, Accounting Systems Diagnostic
- Financial Projections & Tax Liability
- Tax Credits Analysis
- Entity Considerations, Structuring Optimization, and Tax-Optimal Buy-Sell Agreement
Our team of SaaS accountants focuses on so much more than just tax return filings. We find solutions to help tech companies achieve their financial goals. Join our On-Ramp program for a taste of what we have to offer.
On-Ramp for Business
Business and entrepreneur tax returns and compliance
Quarterly estimated taxes
Tax credit analysis
IRS controversy correspondence, representation, and audit defense
Financial reviews and bookkeeping*
Quickbooks or Xero accounting diagnostic
Chart of accounts
Key Performance indicators benchmarking
Systems integration and automation
Accounting software implementation
R&D and Work Opportunity tax credit tracking automation
Accounting system integration
Why Do I Need A Strategic Tax & Accounting Advisor?
Avoid Unnecessary Penalties
Software products don’t fight penalties or take little-known deductions. We do.
Deliverables and Strategy Focused
We make sure that our advisors are aware and transparent about the goals for each client.
Live & Ongoing Strategy
We provide “live” advice that ensures you take action to realize available savings before the ink “dries” on your financials.
Our tax experts know how the IRS works and how to save $1,000’s in tax without raising red flags.