Most CPA firms recognize that tax incentives are a valuable opportunity to improve their clients’ budgets. Tax experts knowledgeable about potential tax solutions make sure to investigate programs that their clients qualify for.
However, not all CPA firms take full advantage of every tax credit available to their clients. Given the number of opportunities, some tax incentives are overlooked more than others.
By researching potential cost-saving tax solutions, you ensure your client’s business maximizes savings and achieves a better tax budget. It is beneficial to speak with an outsourced tax expert if your CPA firm has overlooked any of the following tax credit opportunities.Many Businesses Qualify For Savings Through The WOTC
One tax incentive CPA firms frequently overlook is the Work Opportunity Tax Credit (WOTC). This credit is available to businesses with tax liability that employ individuals from target groups such as veterans, food stamp recipients, Temporary Assistance for Needy Families recipients, Supplemental Security Income recipients and a number of other qualified groups.
Some industries tend to hire WOTC-qualified employees more than others. Your CPA firm should investigate this tax credit if your client’s business operates within the following industries:
- Hospitality
- Retail
- Construction
- Restaurant
- Manufacturing
- Call Center/Customer Service
If these employee and industry criteria match your client’s business profile, make sure to research the WOTC further so your client’s company doesn’t miss out on tax savings for which they are qualified.
R&D Tax Credits Are A Cost-Saving Opportunity
R&D tax credits offer businesses a dollar-for-dollar reduction of liability for research expenditures that qualify through the R&D tax incentive. Supplies used to conduct research or test innovations often qualify businesses for valuable credits. Time spent by researchers may also qualify as expenditures.
In order to take advantage of R&D credit opportunities, your CPA firm must identify your client’s “hidden” research expenses to include when you file for the credit. Partnering with a tax expert knowledgeable in this area is recommended, as specific software that qualifies expenditures is sometimes necessary.
Cost Segregation Improves Your Clients’ Cash Flow
Some businesses benefit from cost segregation tax opportunities when their CPA firm understands how to best capture these tax savings. While cost segregation is one of the more complex cost-saving techniques, a tax expert is a beneficial resource for CPA firms working to apply this tax strategy for their clients.
Cost segregation tax solutions allow building owners or renters to increase their cash flow by taking advantage of accelerated depreciation deductions and deferment of federal and state income taxes.
Your clients’ cash flow is improved through the following opportunities:
- Increase in depreciation deductions
- Increase in green energy tax incentives
- Reduction in property and sales tax
- Increase in state-level business incentives
Cost segregation is just one of the many tax incentive opportunities CPA firms are able to assist businesses with. Capturing these savings makes a significant difference in allowing companies to gain an advantage over competitors and compete with companies that already have this tax-saving strategy in place.
By incorporating the WOTC, R&D tax credits and cost segregation strategies in your CPA firm’s program for helping clients save money, you ensure your clients are not missing out on valuable opportunities that improve their tax budgets.
While tax rules for these overlooked incentives may pose a challenge if your CPA firm does not have experience with the WOTC, R&D tax credits and cost segregation, an expert industry professional is available to guide you through each process.
Ready to learn more about frequently overlooked tax incentives and discover whether your clients qualify? Call 866-444-4880 to speak with an experienced tax expert or click here to schedule a conversation. 
