Tag Archives: Cfo

Hard to believe, but many businesses are not aware of the research tax credit. Smaller, private companies, including those owned by venture capital funds simply leave money on the table. Fortune 500 companies know about the R&D credit and take advantage of it, but smaller companies have not yet realized that the R&D credit is a way to put cash into their business.

Some Recent Client Examples:
• A $49 million plastic blow-molder received a $283,000 benefit

• A $42 million metal fabrication company took a $704,000 credit

• A $24 million equipment manufacturer grabbed a $356,000 benefit Read More →

Gasoline prices have hit $4 a gallon, food prices are escalating, and inflation pressures are soaring to record highs. However, there is at least one tool that companies should use to help turn a negative into a positive.

Joseph E. Stiglitz, winner of the 2001 Nobel Prize in Economics, wrote, “Inflation also presents special problems in terms of accounting, and those who understand those problems can reduce their tax liabilities significantly. Today, most businesses use last-in-first-out, or LIFO, accounting, which subtracts the cost of the latest widget you put in inventory from the cost of the last widget you sold in order to calculate gross profit. Some companies, however, still use first-in-first-out, or FIFO, accounting, which subtracts the cost of the oldest widget in your inventory from the cost of the last widget you sold. In a period of rapid inflation, when the price of widgets is probably on the rise, FIFO companies will appear to be selling their widgets at much higher profit margins than LIFO companies, and their tax liability will be higher as a result. So if you haven’t yet made the switch to LIFO accounting, now is the time to do so.” Read More →

Small and mid-size companies should take advantage of the R&D tax credit, as soon as Congress passes the inevitable extension. The Research & Development (R&D) tax credit is a significant domestic tax credit – a substantial tool for maximizing a company’s value.

Hard to believe, but many businesses are not aware of the research tax credit. Smaller, private companies, including those owned by venture capital funds simply leave money on the table. Fortune 500 companies know about the R&D credit and take advantage of it, but smaller companies have not yet realized that the R&D credit is a way to put cash into their business. Read More →

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