The current pandemic has made it extremely difficult for businesses to survive. Most companies are struggling to seek funds. Every year, the Canadian and United States governments provide companies with billions of dollars in funding in the form of Research and Development tax credits. Startups in the US can use the R&D tax credit to offset as much as $250,000 each year. The amount is usually provided through a refund check. On the other hand, Canadian startups receive cash back of as much as 64 percent on their research and development expenses.
However, the entire application process can be onerous and time consuming. This is where Boast.AI comes into place. It simplifies the R&D tax credit application process so that businesses can get larger refunds without the manual work and risk.
Why Is the R&D Tax Credit Application Difficult To Prepare?
If you have never applied for a R&D tax credit, chances are that you have no idea just how time-consuming it can be. Not only do companies need to identify projects that they had worked on during the tax year, they also need to make sure that the projects meet the requirements of the 4-part eligibility test as mentioned below.
- Develop new computer software, formula, invention, technique, process, or product, (or improve their quality, reliability, performance, or functionality).
- Eliminate any technological uncertainty during the development.
- Evaluate alternatives for elimination of technological uncertainties by undergoing a systematic process.
- Leverage the principles of computer science, engineering, and biological or physical science.
In addition to the above, companies would also need to come up with a technical narrative for each eligible project. All the expenses associated with the projects have to be identified. Backup evidence is required to ensure that the claim is not denied during the IRS audit.
Once all of the information has been gathered, the R&D tax credit form needs to be filed along with the corporate income tax return.
How Boast.AI Streamlines the Application Process?
In the simplest of words, Boast.AI aims to make the research and development tax credit application process extremely easy. It takes away all the hassle by identifying eligible projects and expenses from your existing technical and financial systems, preparing the technical and financial reports for the R&D study, compiling the tax forms, and ensuring that you are prepared for government audits/ reviews.
The best thing about Boast.AI is that customers are only charged a fee one they have received the money from the government. Thus, businesses are able to get larger refunds without the manual work and risk.
Covid-19 has impacted millions of businesses. Boast.AI is here to help companies innovate faster and retain jobs. Use its R&D Tax Credit Software to seek funding now.