Why claiming R&D tax credits is the best way to fast track your startup

Jason Hood, Founder and Chief Executive Officer, BourkeHood.

When considering funding for your startup, the options and processes can be overwhelming.

The situation can be tricky and tempting to bootstrap, get a bank loan, or to attempt to take on the task of making research and development (R&D) tax claims alone.

However, preparing these claims by yourself exposes you to the risk of an audit and a lengthy process to secure the R&D payout. Whereas, utilising a specialised R&D firm is likely going to give you the highest funding return, with the least effort on your part.

“R&D funding can be an absolute game-changer for an organisation,” explains Jason Hood from Research & Development tax incentive consultancy firm BourkeHood.

“A successful R&D claim makes a big difference on the project. The R&D claim needs to be carried out with expertise and care to give the venture the best opportunity at success.”

Getting the most out of your R&D claim through a specialised firm, like BourkeHood can achieve the maximum benefits of claiming R&D tax credits.

Why are R&D Tax Credits so helpful?

R&D Tax Credits can be a great source of liquidity for a growing company, especially for companies that are pre-revenue or between funding rounds. Other types of funding such as bank loans may be still out of reach. Or like venture debts, may be too expensive.

Having accessed the funding, startups can expedite further R&D activities

“A company may be able to bring forward commercialisation plans, support further growth, delay unnecessary financing or equity injections and satisfy ongoing cash flow requirements.”

“It basically means that the project can advance more quickly and can make use of more R&D activities to create a better product or service,” explains Jason.

BourkeHood helped many companies secure 50k – 200k to fund employee and contractor costs, computer and IT costs, vehicle expenses, equipment hire and internet hosting.

Having these costs reimbursed allows the organisation to reinvest in the project quickly. It allows for a faster project launch and a well researched and tested product.

R&D Tax Credits are a non-dilutive capital option. This allows founders to retain full control and ownership over their business. Jason generously elaborates on this issue.

“Accessing a non-dilutive capital option is a very important reason to choose R&D funding.”

“When using R&D claims there is the ability to preserve the ownership of a company for a future occasion when the product is mature and optimal valuation can be achieved.”

Bourkehood offers clients essential R&D tax advice

Research & Development firms are specialists in finding the funding path that best suits your particular project, giving you the highest returns on your R&D spending.

Accountants often don’t have this specialist experience. Bootstrapping, as impressive and exciting as it may be, results in a slower launch time or less start-up capital produced.

BourkeHood allows you to achieve the best returns on your claim, allowing you to focus on doing what you do best, running the company, refining products or managing your people.

BourkeHood has over 200 clients across Australia and New Zealand, and four office locations globally. The team services more than 18 sectors and has a 100% success rate.

Overall, BourkeHood has helped secure over 30 million in R&D benefits.

Among BourkeHood’s many success stories are R&D benefits of

  • $156,000 for a pharmaceutical company who received an R&D benefit of $156,000
  • $183,000 for a hemp farming company
  • $75,000 for an AI analytics company

The BourkeHood team has a deep understanding of the R&D schemes, and even has an ex-R&D inspector of 27 years on the team. Using Bourkehood means that you’ll receive ongoing support from the start to the finish of your claim, with the best outcome.