To accurately calculate the credit, tax accountants need to collect data on all R&D activities including staff hierarchies, wages, tax rates and time and materials allocated to R&D. Specifying and collecting the data manually from internal systems is time-consuming, especially when it comes to handling sensitive data from each group. Some tax professionals resort to their own end-user-developed applications (EUDAs) to perform calculations and allow for manual adjustments and allocations.
Automating R&D calculations with analytics allows companies to review every transaction and maximize the tax credit. Operating on sources as diverse as HR data, expenses, tax rates and country data, analytics can follow staff/departmental hierarchies, allow for adjustments and perform complex calculations.
By automating R&D tax calculations, you can:
- Increase efficiency, save time, and improve ROI
- Increase consistency with how your company defines and captures Qualified Research Expenses (QREs)
- Reinvest money saved into higher value projects
- Increase visibility and accuracy in the R&D tax calculation process