Accounting and tax for technology companies
A technology company’s books need to keep pace with hiring, financing and ownership changes. We connect the accounting and tax work with the questions management and the founders are facing.
Plan for hiring across states
A distributed hiring plan can change the company’s payroll costs and state tax or filing responsibilities before the added team contributes revenue. The relevant questions depend on where people will work, when they start and which entities employ them.
We connect the hiring schedule and payroll estimates to the existing books, then identify state registration, withholding and income-tax questions that need resolution. Management can see the monthly cash commitment and the filing work that would follow each hiring scenario.
An engagement can cover recurring accounting, company tax preparation or a focused financing or transaction question. We can take a defined role alongside the company’s existing finance team or bookkeeper.
Two hiring sequences
Suppose a company has closed a financing and plans to hire three employees in another state. It could hire the full team next quarter or stage the starts over six months.
Compare monthly payroll and cash needs under both sequences, using the employees’ work locations to identify state payroll and tax questions. The resulting schedule shows the cost of earlier hiring and which registrations or filings must be addressed before the start dates.
The company and the founder have different questions
The company’s financial reporting and payroll records are not the founder’s personal tax return. Equity compensation, an exercise or a proposed sale can create related work, but the company and the individual need their own analysis.
We can coordinate the relevant tax information across separate engagements. Company counsel and the equity administrator retain their responsibilities for legal and ownership records. Where a shareholder is considering a review of qualified small business stock (QSBS), the company’s history may be an important part of the supporting work.
Research credits start with the activities
We help technology companies claim the federal research credit. Eligibility depends on the qualifying activities and the costs actually incurred, so project descriptions, payroll allocations and vendor records must support the claim; developing technology alone does not qualify. We review the activities and records before a credit is claimed.