Cherry Bekaert: Technology

Technology products and software that are hyper-focused on creating efficiencies within an organization can save time and money, and even help scale a business. But as a technology leader, have you taken a step beyond that to explore what it can mean for the empowerment of your employees? Join Cherry Bekaert’s Client Accounting Services Leader, Dixie McCurley, as she discusses the importance of breaking down silos within an organization and creating a culture of true collaboration with our guest and COO of Expensify, Anuradha Muralidharan. 

Anu helps her organization meet its mission of returning to its people and customers our scarcest asset: time. In this podcast, she shares the pros and cons of her company’s unique model, and how it inspires employees and maintains the company culture while still fostering growth by creating efficiencies for its people.

Is Your Team Operating as Efficiently as You Would Like? 

Let us help you explore areas of your business that can lead to greater motivation, inspiration and empowerment for your employees. We’re pleased to offer a Health of the Business Check-Up Report at a discounted rate of $500 to get you started. We’ll examine where you are, where you want to be and how to get there by transforming the accounting function.   

Learn more here

Catch up with the previous episodes in this series: 

• The Year of Efficiency Part 1: Process Optimization 
• The Year of Efficiency Part 2: Leveraging Automation

As technology and business leaders seek efficiencies in nearly every aspect of their business, they need solutions to help them save costs and to make informed decisions quickly. In the second episode of our “Year of Efficiency” podcast series, Jerry Hereden hosts Tertius Eksteen, Senior Manager, and Pamela Butler, Manager, from Cherry Bekaert’s Digital Advisory Services group to discuss how some technology companies are optimizing their business while on a Digital Transformation journey.

Tune in to this episode to learn more about: 

• Robotic Process Automation (RPA)
• Leveraging tools such as Salesforce or MuleSoft RPA to reduce manual processes
• Impact to the customer experience   

Could your technology company benefit from increased efficiency while improving accuracy and scalability? 

Our team offers a free design workshop to assess solutions for your business. We work with you to identify gaps in your current processes and offer solutions to help automate tasks.

Learn more here

Catch up with episode 1 in this series: 

• The Year of Efficiency Part 1: Process Optimization

You may have heard it said, it’s the “Year of Efficiency,” as technology companies seek solutions that save on costs, drive faster innovation and better manage processes. While accounting may not be every entrepreneur’s favorite topic, it is ours! Listen to Chase Wright, leader of our Accounting Advisory practice, and Graham Michitsch, Accounting Advisory Senior Manager, as they discuss how the accounting and finance back office is an essential function of a company, and why awareness of the underlying process is just as important as adopting new technology. 

Tune in to this episode to learn more about:

• Improving internal processes more rationally rather than in crisis mode 
• Identifying the proper technology and tools for the maturity of the business cycle
• Maintaining accurate reporting from an investor’s point of view

Does your team have an overall understanding of what process optimization looks like?

Let our advisors with you to create a prioritized solution roadmap for your company. Our tailored, facilitated workshop helps you create quick wins for your accounting function that align with your company’s finance and overall business strategies.

Learn more here

Leaders of technology companies – particularly those in the startup phase or strapped for cash – have a lot to mentally juggle in their day-to-day operations. However, one area of the business they should pay attention to are the state and federal credits available to them. Tax credits for technology companies may save money and time, creating opportunity to manage and optimize their business more effectively.

In the latest episode of our Technology podcast, Chris Delcambre, Tax Partner, welcomes members from Cherry Bekaert’s Tax Credits & Incentives Advisory practice, Martin Karamon, Melinda Young and Vivian Kohrs, to discuss how companies can turn challenges into opportunities through intentional and timely planning.

Listeners will learn about:

• Government assistance for technology companies experiencing staffing issues 
• Why it’s important to look into R&D credits sooner rather than later 
• How to monetize credits even if your company is in losses 
• How to plan around and offset Section 174 costs

Other Relevant Guidance

• Section 174 New Requirements and Its Impact on Technology Companies 
• How to Benefit from Business State and Local Tax Credits & Incentives Programs
• Section 174 Research & Software Development Costs – A Guide to Compliance

On the surface, it may seem like a simple accounting method change, but Section 174: Amortization of Research & Experimental Expenditures has complex implications and rules, particularly for technology companies, as it relates to research and software development costs.

Section 174 impacts technology companies much more than other industries. In the latest episode of our Technology podcast, Tim Larson, Tax Partner, welcomes members from Cherry Bekaert’s Tax Credits & Incentives Advisory practice, Martin Karamon, Daniel Mennel and Carolyn Smith Driscoll, to discuss new mandatory requirements for taxpayers under Section 174 and what it means for technology companies.

In this podcast, we’ll cover: 

• Differences Between Section 174 and the R&D Tax Credit 
• Expenditures vs. Expenses 
• Risk Rights 
• Software Development vs. Services 
• Companies in Losses 

Future developments to this tax code are anticipated this year. Subscribe to Cherry Bekaert’s technology podcast and other guidance offerings so you don’t miss a thing.

Other Relevant Guidance:

• Section 174 Research & Software Development Costs – A Guide to Compliance
• R&D Update: What’s Going On With Section 174?
• R&D Tax Credits: 2022 Year in Review
• Planning for Capitalization of Research and Experimentation (R&E) Costs

To conclude our series on State & Local Tax and Sales & Use Tax for tech companies, we explore a few lucrative state credits and incentives not to pass up. While the R&D credit is probably the most common credit that tech companies take advantage of, our specialists shed light on other, less commonly known credits and incentives.

Cherry Bekaert Tax Partner, Tim Larson, welcomes two members of our Tax Credits & Incentives Advisory group: Director, Melinda Young, and Senior Manager, Nick Cousino. Together, they discuss just how much companies could receive in state credits and incentives through the Job Tax, Employee Retention and Angel Investor credits. They’ll also explain how companies that own and operate data centers can qualify for notable tax incentives.

The conversation includes:

• Location-Based Job Tax Credits
• Disaster Employee Retention Credits
• Credits for Companies that Own and Operate Data Centers
• Angel Investor Credits & Incentives  

 If you haven’t already, catch up on the first three episodes in the series:

• Episode 1: What Tech Companies Overlook in Sales Tax Reporting
• Episode 2: Sales Tax Best Practices for Technology Sellers 
• Episode 3: Three State and Local Tax Issues Tech Companies Need to Address Now

Other relevant guidance: 

• Transferable State Tax Credits: Opportunities to Reduce State Taxes
• State Taxes and a Remote Workforce 

If your tech company is outgrowing its accounting system or experiencing pain points while transitioning to a SaaS model, this podcast episode is for you! Join Technology Industry Practice Leader, Michael Valerio, and Strategic Alliances Director, John Bartz, as they discuss how Cherry Bekaert’s digital advisory team works with tech companies to provide services around strategy, implementation, optimization and support while utilizing Sage Intacct.

This episode offers insight into how Sage Intacct solutions can greatly improve a tech company’s reporting and financial management, particularly when it experiences multi-entity consolidation, international expansion, change from a legacy system and more.

Other Relevant Guidance:

• Collaboration Tools Changing the Landscape of the Workplace
• How to Build a Data-Driven Culture in Your Organization

As every state has its own rules surrounding tax structure and income sourcing, it is imperative to your company to consider the nuances of state tax reporting. To address these complexities and much more, we continue our podcast series dedicated to technology companies by discussing three main issues that that continually arise for the sector when it comes to state and local tax (SALT). 

Rob Schwarzmann, Tax Partner, hosts Cathie Stanton, SALT Leader, and Tony Konkol, SALT Manager, as they highlight key areas of focus that should be on every CFO’s mind: Nexus, Revenue Sourcing and Pass-Through Entity Elections (PTEs). 

The conversation includes:

•  Nexus & State-Specific Standards
•  Revenue Sourcing
•  Early or Growth Stage Companies in Losses
•  PTE Elections
•  Private Equity Considerations
•  State Legislation & Statutes
•  PTE Election Takeaways

Catch up on the first and second parts of our series:

• Episode 1: What Tech Companies Overlook in Sales Tax Reporting
• Episode 2: Sales Tax Best Practices for Technology Sellers

Relevant Guidance: 

• State Pass-Through Entity Tax Elections – Don’t Leave Cash on the Table!
• Pass-Through Entity Tax Update
• How Supply Chain Changes Impact Your State and Local Taxes

In the first episode of this technology podcast series, we highlighted a few key sales tax considerations for technology companies. In this follow-up episode, Cherry Bekaert’s Sales Tax team focuses on issues that impact sellers of technology. 

Listen as Megan Hutchinson, Technology Tax Partner, is joined once again by Lauren Stinson, Sales & Use Tax Leader, and Don King, Indirect Tax Director, as they discuss marketplace sales, tax-exempt wholesalers' sales, and sales tax technology solutions. They will also share their predictions for 2023 as they pertain to recent tax law changes.       

Other relevant guidance: 

• https://www.cbh.com/guide/articles/tips-for-applying-for-a-sales-and-use-tax-refund/
• https://www.cbh.com/guide/alerts/sales-and-use-tax-technology-and-the-evolving-definition-of-sales-tax-nexus/ 
• https://www.cbh.com/events/why-growing-tech-companies-need-a-sales-tax-strategy-now/ 
• https://www.cbh.com/guide/case-studies/sales-tax-exposure-reduction-in-technology-companies-acquisitions/ 

Tech entrepreneurs and company leaders are often so laser-focused on company growth that sales tax is not top-of-mind. But since the 2018 Wayfair decision – a ruling that allows states to impose sales tax obligations on companies with economic presences – many technology companies still disregard an important tax obligation, leading to costly and complicated compliance situations. 

Join leaders of Cherry Bekaert’s Sales Tax team for a short series that will focus on important issues affecting your technology company. Tax Partner Megan Hutchinson moderates the first episode as Lauren Stinson, Sales & Use Tax Leader, and Don King, Indirect Tax Director, cover these areas and more on: 

• Taxability considerations for technology 
• Sourcing challenges 
• Impacts on M&A transactions 

Other relevant guidance: 

• https://www.cbh.com/guide/alerts/sales-and-use-tax-technology-and-the-evolving-definition-of-sales-tax-nexus/ 
• https://www.cbh.com/events/why-growing-tech-companies-need-a-sales-tax-strategy-now/ 
• https://www.cbh.com/guide/case-studies/sales-tax-exposure-reduction-in-technology-companies-acquisitions/