Why does the government give incentives?
Incentives are available to encourage a company to take an action that they might not have without the incentive. In almost every case, this has a positive financial impact on the state or city providing the incentive.
For example, most credits for hiring economically disadvantaged individuals lower the burden on public assistance programs and most job creation and investment programs increase the tax revenue of the government.
Are incentive programs worthwhile to go after?
Often yes, but not always. Companies should always consider whether they truly fit the program requirements and also take the time to understand the reporting requirements.
Doesn’t my CPA/accountant get these incentives for me already?
Rarely. The accounting profession is very broad and most CPA firms are focused on ensuring that your financial statements and tax returns are prepared correctly and accurately. Incentives are a specialty area that complements your accounting team. In fact, many of our professionals are CPA’s themselves and work very well alongside our clients’ CPA firms.
Why would my company be entitled to benefits?
There are many different programs and these programs vary from one location to another. However, if you are a profitable business which fits in any of the following categories, it is likely that there are programs that make sense for you to evaluate:
- Hiring large numbers of employees (even through turnover)
- Creating Jobs
- Investing in training employees
- Relocating or expanding the business
- Opening new locations
- Investing in research and development activities
- Investigating renewable energy or energy efficiency projects
Why do companies hire consultants?
The reasons we most often hear from our clients on this question can really be simplified into the following areas:
Don’t miss an opportunity
These programs are constantly changing and evolving. Hiring a consultant allows clients to be comfortable that they are being kept apprised of all new opportunities that may benefit their business
Having a consultant handling and managing the project plans and compliance allows their staff to focus on other areas more central to the core business
Limit Your Risk
Consultants often work on a success fee basis which means that the client will not incur fees unless there is a clear benefit available to the business.