Case study : WEB DEVELOPMENT FIRM A
“J” owns and runs a web and app studio in Sydney’s Lower North Shore. With up to 10 employees, J’s business specialises in creating and maintaining websites that are business specific with innovative solutions for e-commerce applications. The company has its own proprietary code running a common platform to develop web based and cloud applications.
J’s business was going through a difficult cash flow period and competitive pressures were affecting business.
This was stifling the development of his proprietary platform and he was losing business and clients. He was asking himself serious questions as to whether his business could survive. J was under considerable pressure and was considering laying off staff to cut costs.
After meeting with Ray and together analysing and structuring its development costs, we discovered that much of J’s development in-house could be claimed as part of the R&D Tax Incentive program offered by the Australian government. With Ray’s help in applying for the incentive program J’s first R&D claim returned nearly $100k.
J has now built into his accounting processes the capture of R&D costs in all their projects and web developments meeting the R&D legislation and maximises it’s claim. The ongoing R&D refund has ensured the survival of J’s business and enabled development of new modules for the platform leading to new features for customers web sites.
This has allowed him to be more competitive in his pricing for web developments and is able to offer better features for his clients, increasing his bottom line.
If you have propriety code as part of your business, the R&D Tax incentive could help you with your cash flow issues as well. Contact Ray to find out.
