As software and technology companies continue to grow and evolve, so does their need for sound business advice. The Technology Industry Group at Anchin is uniquely qualified to serve the diverse needs of early stage, growing and established technology companies. For more than 90 years we have been advising businesses on topics that matter most to them – such as maximizing stockholder value, realizing their financial vision, and organizing the company in the most efficient and advantageous ways for future growth.
By keeping clients abreast of new developments and industry trends, Anchin’s experts provide the practical solutions companies need to keep growing in a highly competitive market. The Technology Industry Group helps companies throughout their lifecycle obtain access to capital and financing, consider the most effective tax and equity structure of the company, and provide due diligence for merger and acquisition opportunities. Our experts assist companies in developing key employee retention strategies, perform valuation analysis, and help management understand and execute complex revenue recognition practices. In addition, Anchin also provides clients a seamless approach in generating and utilizing tax credits and incentives, including research and development tax credits, and other state and local incentives.
Anchin’s Technology Industry Group recognizes that all of these strategies are utilized as part of each client’s unique blueprint for growth and profitability.
- Accounting issues and tax consulting
- Revenue recognition
- Intellectual property and other intangibles
- Equity based compensation
- Website and software development costs
- Tax credits and incentives
- Research and development tax credits
- Section 199 deductions
- Section 382 NOL analysis
- Multi-state tax analysis and issues
- International taxation
- Transfer pricing
- Employee benefit plan considerations
- Business advisory services
- Venture capital and private equity financing
- Organization structure and exit strategies
- Mergers and acquisitions
- Transaction Advisory Services - Due Diligence
- Implementing effective business plans
- Compensation structures for key employees
- Cash flow projections and modeling
- Facilitation of bank financing
- Overhead cost reduction
- Financial system selection
- Business valuations
- Estate planning
- Succession planning
- Recruitment of financial personnel
Research and Development
The United States has the most advanced software and information technology industry in the world. The U.S. software and IT industry has increased its revenue to more than $600 billion in recent years, representing 25% of the global marketplace. Products and services from the technology space have efficiently transformed the way most organizations communicate, coordinate, and operate. There are more than 100,000 technology services companies in the U.S., a staggering 99% of which have fewer than 500 employees. On the other side of the spectrum, a list of the world’s largest software development firms by revenue is dominated by U.S. companies which hold eight of the top ten spots.
Due to the rapid adoption and expansion of internet technologies over the past decade, the software and technology industry has undergone significant structural change, most notably a shift from commercial product release toward customized software related services. The most evident example of this is the evolution of cloud computing, mobile or wireless technologies and the “Internet of Things”. Research and Development (R&D) tax credits are available to all technology businesses that produce or develop new or improved products, processes, principles or methodologies.
Anchin’s professionals understand the important role the technology industry plays in keeping the U.S. competitive in an increasingly global economy. Our industry experience, attention to detail and expert judgment result in accurate, highly defendable tax credit calculations. Our dedicated team includes audit, tax and advisory professionals with years of experience identifying issues and solving problems for technology industry companies in the following areas:
- Application software publishers
- System software publishers
- Custom computer programming services
- Middleware, tools and integration software/services
- Information, communication and cyber security services
- Cloud computing, wireless and mobile platforms development
Our technology industry R&D team ensures that our clients benefit from all of the incentives available to them. Anchin helps clients assess their R&D tax credits at all phases of their business, from the time they first consider a new product, service or functionality (white space evaluation) and throughout the entire product development lifecycle. We are particularly skilled and experienced at identifying qualifying projects and initiatives in each area of your business and are experts at examining and capturing all allowable expenses towards your company’s research credit.
- R&D Tax Credits Case Studies: Technology
The following are two examples of client development efforts in the software and IT industry which further illustrate the types of projects and activities that
- Proposed Regulations Provide Clarity and Guidance Related to Computer Software as it Applies to the R&D Tax CreditJanuary 26, 2015
On January 16, the Treasury and IRS released proposed regulations (REG-153656-03) regarding internal use software ("IUS") expenditures as related to the Section 41 Research & Development ("R&D") tax credit. The proposed regulations contain several important changes related to claiming the R&D tax credit for IUS expenditures.
- MIT Enterprise Forum (MIT-EF) NYC: AR/VR Start-Up ShowcaseApril 20, 2017
- The Research and Experimentation Tax Credit: A Credit Fraught with Uncertainty and in a Process of ExperimentationJanuary 1, 2011
Abstract Purpose – The purpose of this paper is fourfold: to provide an overview of the alternative simplified credit (ASC) and a basic understanding of how
- Utilizing Innovation and Strategic Research and Development to Catalyze Efficient and Effective New Product DevelopmentJanuary 1, 2010
Introduction The ability to effectively innovate and develop new products is a vital core competency that any company must possess if it is going to be