In unique and challenging times, organizations should employ a forward-thinking strategy to help guide them securely into the future. Recognizing opportunities to increase cash flow is critical to future business success. One way to accomplish this goal is through utilizing the Credit for Increasing Research Activities (R&D Tax Credit).
Taxpayers can utilize the R&D Tax Credit to offset income tax, and qualified small businesses can use this tax credit to offset payroll taxes. Both can generate instant cash flow. Yet the credit is often overlooked due to the mistaken belief that R&D Tax Credit studies can only be done in person. It is true that in "normal times," conducting an R&D Tax Credit study would involve site visits, factory tours and in-person whiteboarding sessions. However, as with many things over the past year, adapting an R&D study to a virtual environment can be achieved.
John Chennoor, Director in DHG's R&D Tax Credit practice, shares best practices to help organizations understand R&D tax credits, assemble the right team and technologies to facilitate the virtual study and bring in additional cash flow.
Read the full article on how R&D studies can be a source of additional cash flow at the Virginia Society of CPAs website.