Emerging Technology FAQs

Yes. If your company engages in research in development activities, which many technology-focused startups do, you may qualify for a research and development (R&D) tax credit.

Tax Benefits Article

Yes. Early-stage companies, which generate less than $5M in gross receipts, may qualify to use their R&D tax credit to offset payroll taxes irrespective of their profit or loss.

R&D Article

• Your company can outsource accounting services including but not limited to:
  • Outsourced CFO and controller services
  • Full source of accounting functions which can include bookkeeping, month end close assistance and reporting and more
  • Budget analysis and projections
  • Valuation services 

A best practice is to have a valuation done when equity is issued to employees and when there is a large capital raise.

Valuation Article

There are a lot of systems that emerging technology clients use. One software that should be implemented is an equity management system to house all equity agreements, maintain vesting schedules and calculate compensation expense.

We get this question a lot from early-stage companies or we hear from owners that their plan is to exit via IPO. The reality is that very few early-stage companies go through an IPO as their initial exit. In a lot of cases, a more compelling exit presents itself prior to the opportunity to do an IPO. However, if you are considering an IPO there are a lot of complex, costly and time consuming, regulatory, reporting and legal requirements that must be considered prior to going this route.

IPO Article

Unfiled sales tax returns and unknown sales tax liabilities.

Schneider Downs’ Accounting Advisory group can assist an organization with any accounting issues, such as:

• Equity accounting for stock options, stock warrants, stock appreciation rights, profit interests, debt vs equity considerations, or convertible debt
• Revenue recognition under ASC 606
• Capitalized software cost accounting
• Lease accounting under ASC 842
• Valuation of intangible assets

Accounting Advisory Services Article

Schneider Downs offers three types of assurance services: compilations, reviews, and audits.

• A compilation involves organizing client data into a financial statement format but does not offer any sort of assurance.
• A review involves limited assurance that the financial statements are free from material misstatements and involves inquiry and analysis. 
• An audit is the highest level of assurance service we provide. In an audit engagement, we obtain evidence through testing and inquiry to provide reasonable assurance that the financial statements are free from material misstatement.

Compilation, Review, and Audit Article