How R&D Tax Credits Can Strengthen Accountant/Client Relationships

When a company contracts your services as an accountant, they often have a specific set of required tasks in mind. Collating information and sourcing council on upcoming tax returns and ensuring they are all in order is one of their primary concerns. After all, they want to avoid any undue attention from HMRC later in the year. But when you work with a business that’s also looking to optimise opportunities for future innovation, there’s a little more to it. And that could have implications for how these costs are dealt with from a tax perspective. Having a specialist fully versed in the area of innovation incentives can both help to expedite the claim process but also ensure a more optimum claim value. Today, we’re looking at how, as an accountant, your R&D tax expertise can strengthen your relationship with your clients.

The strategic role of an accountant

Alongside the wide range of tasks you'll be helping your client with, a great accountant will also help a company decide how best to grow. That could include offering helpful insights on financial patterns arising from pricing, cash-flow management, sensible budgeting, payroll, project financing, and more.In addition to this, you can also lead clients to useful resources and services that can help them access funding, plan ahead, and even enhance process management. One particular area they may need special assistance in is research and development.

Accessing the right expertise for R&D

Implicit in the accountant/client relationships is trust. Regarding the benefits of a successful claim on R&D tax credits, part of your role as an accountant is to reassure your client that there are strong reasons for keeping accurate and detailed records of costs incurred during R&D. In this area, your capacity to bring onboard expertise to enhance claim quality and validity can help you create a stronger bond with your client.

Sourcing high-quality know-how, experience and expertise

As a specialist, you may not necessarily have the in-depth knowledge required when it comes to collating the details and processes regarding the planning and execution of your clients' often costly (and non-revenue-generating) R&D projects. That is where the services of an R&D Tax Credit specialist can add value. Specialist insight into various elements of the R&D tax credits process and sector-specific knowledge can make a significant difference in the resulting value of a successful claim. Such a specialist can also mean having a much higher chance of executing a successful and advantageous claim.R&D Tax Credit experts can often increase the size of a claim. Using their accrued knowledge, they are well-suited to structure and compile a comprehensive claim report that will hold up to any enquiry from HMRC.They can also take a deeper dive into the specifics of the claim. In doing so, they can identify qualifying expenditure that may have previously been overlooked. For example, by having an in-depth discussion about the number of people involved in the R&D project(s) and what their precise briefs were, the specialist can identify and specify the extent of each person’s involvement in the project, and therefore their allocation of qualifying time.

Thinking long-term

All in all, having expertise on hand is beneficial to all parties. The greater the insight into the R&D claims process, the better the advice you can give your client and the more likely you are to make a successful claim. A healthy company is a well-informed organisation. They’re aware of the need to fund non-revenue-generating activities over the longer term. Optimising claims for R&D tax credits makes long-term planning more feasible. The strength of your accountant/client relationships depends, in turn, on what you do to help move your client forward strategically. Working hand-in-hand with external experts on claims for R&D tax credits can make that process more fruitful. It can also make much-needed funds available for further investment and innovation in the future.

Can Kene help your clients?

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