Tech & Startups

Tech & Startup Accounting

Specialist accounting for technology companies and startups, leveraging the R&D Tax Incentive and other government programs.

R&D Tax Incentive for Tech Companies

The R&D Tax Incentive is a key benefit for Australian tech companies:

• Smaller Companies (turnover under $20M): 43.5% refundable tax offset
• Larger Companies: 38.5% non-refundable tax offset
• Eligible Activities: Software development with technical innovation, experimental computing, AI/ML research, cybersecurity R&D
• Minimum Threshold: $20,000 R&D expenditure per year
• Registration: Must register with AusIndustry within 6 months of year end

Startup-Specific Services

• ESOP/ESS Schemes: Employee Share Scheme setup, ATO safe harbour valuations, and tax concession advice
• Company Structuring: Pty Ltd vs public company, holding company structures, and IP holding entities
• Venture Capital: ESVC program compliance, investor reporting, and cap table management
• Grant Applications: R&D grant, commercialisation grants, and state-based innovation funding
• Revenue Recognition: SaaS subscription revenue, deferred revenue, and multi-element arrangements
• International Expansion: Transfer pricing, foreign subsidiary setup, and cross-border tax planning

Tech-Specific Accounting Considerations

• Intangible Assets: Capitalisation vs expensing of software development costs
• Cloud Computing: GST treatment of cloud services and SaaS subscriptions
• Digital Products: GST on digital products sold to Australian consumers
• Stock Options: Tax treatment of employee options and shares
• R&D Record Keeping: Detailed documentation to support R&D claims

Growth Stage Support

• Seed and Series A fundraising financial modelling
• Investor-ready financial statements and reporting
• Board reporting and governance
• Cash flow forecasting and runway management
• Exit planning ??? M&A and IPO readiness

Source: ATO ??? R&D Tax Incentive