R&D Credit Tracking for CPA Firm Serving Tech & Engineering Startups

Industry

CPA Firm (Tech, Biotech, Engineering)

Services Provided

R&D Expense Categorization, Payroll Allocation, Credit Documentation

Location

San Jose, California

Engagement Duration

Since March 2024

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:

Metric Before After
R&D Documentation Incomplete IRS-Ready Dossiers
R&D Credit Value Missed Deductions +28% Increase
Staff Involvement (CPA) High Less than 1 Hour Review per Client

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.

Client Testimonial

You helped us deliver defensible, maximized R&D claims—without burning our team.

Tax Director, Startup-Focused CPA Firm

San Jose

Audit-Ready R&D Credit Tracking

More credits. Less risk. No internal stress.

Schedule a Free Consultation Today

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