As a business owner, I am always looking at ways to improve and innovate my systems and work efficiently with the tax code.
But recently, I was thinking if there were ways to help my clients do the same, through the services that I am providing to them (absolutely not taxes services!)
By reading some articles here and there, and getting a better knowledge of the R&D tax (research and development), I figured that this advantage could be easily applied to my industry, which is industrial automation and manufacturing.
So, I started writing down some sentences on how to approach my clients with this idea, and here are some that I’d like to share with you
Isn’t true that everyone in the industry has heard or discussed how to innovate, renovate, or improve a machine/process/production of some sort?
Ok, along the discussion, haven’t you thought about what variables, people, materials, and planning would involve doing something like the listed above?
For instance, everyone can tell you about the technical aspect and just focus on it and how different ideas or concepts can accomplish what you are requesting, isn’t that true?
But, what if I tell you that with the technical aspect we can also put together a plan of action, that will help you get back your investment for free by potentially writing off the entire project, doesn’t that sound good?
(Again, we are NOT financial advisors here, I suggest you always check with your CPA or attorney, also not all the projects will apply, but line retrofits, improvements such as adding a robot, etc)
Check this link to know more about what the IRS is allowing under Section 179 here:
For a quick explanation, you can check this link as well:
https://www.investopedia.com/terms/s/section-179.asp
Well, the plan I am talking about here is structured as follows:
- Find out how much Investment to accomplish one or more tasks or challenges listed at the beginning (let’s say initial conversation)
- We will work with your CPA or accountant to find creative ways to reduce your taxes through R&D
- Targeted ROI showing how long it would take for the system to pay for itself
How does this sound so far? Good?
Alright, as you can see, we are trying to go above and beyond our client’s expectations, because we understand that a lot of aspects need to take place before you can make a decision.
We are people helping people achieve their maximum potential without breaking the bank or postponing the improvement for lack of approval (this part particularly applies in the corporate world)
If this sounds too good to be true, I encourage you to think twice, because it’s easy math, and the IRS code is right there for everyone to read, won’t you agree with that?
Do you think this model, with some tweaks, could be applied across different industries? I believe so, but I would like to receive your
feedback.
Takeaways
I think it is worth verifying these scenarios, as you always looking to cut costs and improve production, is good to do this exercise for free and discover if advantages are available for your projects.
Conclusions
Sometimes we give too much emphasis to what we know best, but the duty of a leader is always to look 5+ steps ahead, and combine different ideas/tactics to be at the edge in every scenario (at least, try to be…).
The point here is to get informed, build partnerships, and strategize with your group to find solutions that ultimately can improve our lives.
I hope you enjoyed this quick reading, let me know what you think.