How to find the right R&D tax incentive advisor for your start-up
Securing R&D tax incentives can feel overwhelming for start-up founders tackling the complex application process alone. However, with expert guidance from the right advisor, navigating funding opportunities need not be so daunting. This guide explores the benefits of using an R&D tax advisor and helps you find the right fit for your unique needs.
Why choose an R&D advisor?
The R&D tax incentive offers an attractive source of funding for start-ups. However, success hinges on meeting specific program criteria and navigating the application process effectively. This is where a knowledgeable advisor proves indispensable. Whether validating eligible activities or managing documentation, their expertise streamlines submissions to strengthen your case. Here’s a few key ways they can maximise potential return for your company:
Application guidance: Advisors guide organisations through the application process, ensuring all documentation is in order to support the strongest possible claim.
Maximising tax benefits: R&D tax advisors are experienced in identifying eligible R&D activities and expenses. They can help businesses maximise their claims by ensuring all eligible expenses are properly documented and accounted for.
Specialised knowledge: R&D tax advisors specialise in understanding the intricacies of tax laws related to research and development, helping to ensure compliance with relevant regulations.
Compliance oversight: Advisors act as a liaison with tax authorities, facilitating reviews or audits to substantiate claims and ensure ongoing compliance with program regulations.
Ongoing support: Once incentives are secured, advisors help with ongoing rulings on new R&D projects and claims for future years.
How to find the right R&D advisor
The importance of a good advisor-founder relationship cannot be overstated. With so much at stake, it’s essential to select an advisor strategically. Here are some key factors to consider when evaluating candidates:
Industry expertise: Look for an advisor with a deep understanding of your specific industry. This expertise is crucial as they will be more familiar with the challenges and standards of what constitutes R&D in your field.
Credentials and experience: Ensure your advisor holds relevant professional qualifications and a proven track record of success in securing R&D rebates.
Reputation and references: Consider the reputation of the advisor or the advisory firm. Check for references or testimonials from previous clients to gauge the quality and reliability of their service.
Service model and fees: Rates vary depending on need; it’s a good sign when a potential advisor provides transparency on included support and additional costs.
Types of R&D advisors
When evaluating potential R&D advisors, it’s important to understand the different types of options that are available. The type of advisor you choose can impact aspects like cost, specialisation level, and service offerings.
Boutique firms
Boutique advisory firms are typically smaller in size, ranging from solo practitioners to teams of 5-10 advisors. What they lack in size, they make up for in specialised industry knowledge. With a laser focus on just one or two technology niches, boutique advisors are extremely well-versed in the nuances of incentives and compliance for those particular sectors.
Large accounting firms
National and global accounting firms have substantial R&D advisory teams. The scale allows them to handle very large, complex multinational clients. Large firms offer full international support networks and vast administrative resources, and may be valuable to larger companies seeking credibility in anticipation of larger capital raising events, acquisition or IPO.
Independent consultants
Independent advisor practices consist of solo practitioners or very small partnerships. With either a focus within particular sectors or general expertise, independent advisors carry deep industry expertise and a high level of engagement. They provide a cost-effective compliance solution that is likely to appeal to start-ups.
Government advisors
Advisory services offered through regional and national government bodies may have no direct costs. While general application guidance is accessible, government advisors have less involvement in complex claims or audit representation. Agencies like AusIndustry provide initial guidance on available incentives. The government also provides resources to find advisors and experts related to your field and location.
Finding the right R&D advisor with Kashcade
At Kashcade, we understand the challenges startups face when navigating the complex world of R&D tax incentives. That's why we've built a network of reliable and experienced R&D advisors who appreciate the needs of growing companies, from biotechs to advance manufacturers to SaaS start-ups. The advisors in our network have a proven track record of success in securing funding for innovative start-ups, and they possess deep expertise in various technology niches. Feel free to reach out and we’ll point you in the right direction.
If you’ve accrued an R&D tax incentive rebate and you’d like to access the value of the rebate early, whether you’re part-way or completely through your financial year, get in touch with us today to discuss an R&D Loan with Kashcade.