The Challenge

The CPA firm had trouble with:

• Tracking R&D Qualified Expenses: Clients had disorganized R&D classifications.
• Payroll Allocation Errors: Developers weren’t split between R&D and ops.
• Poor Documentation: Claims risked being denied by IRS or state agencies.

Our Solution

We became their back-office R&D credit partner:

Expense Categorization

• Tagged eligible expenses under IRS 174 guidelines.
• Created audit trails with receipts, time logs, and narratives.

Payroll Time Allocation

• Separated developer, analyst, and PM payroll hours by project phase.
• Delivered summary schedules for federal and state filings.

The Results

After just six months of working with us, the business experienced tangible improvements:

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Key Takeaways

• CPA firms can offer higher R&D credit value with outsourced tracking.
• Accurate time and cost allocation avoids IRS red flags.
• Tech and engineering clients need audit-ready documentation.

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