Though software companies generally have the same process as a majority of the other industries, there are still certain areas in which they need to be well versed in. This is so that they can establish and maintain credibility with their lenders and investors, as well as to minimise exposure to tax.

Whilst we don’t claim to be technical software experts at The Accountancy Solutions we can stake the claim that we have worked with many businesses in the industry and know exactly how to tailor our services to the individual requirements of each client. We have worked with all types of businesses, from new start-ups to established pioneers, providing them with the accounting solutions they need in order to thrive as a business.

Areas that we can assist in include:

  • Management Accounting & Payroll
  • Financial Accounts & HMRC compliance
  • Enterprise Investment Schemes
  • Research & Development Reliefs
  • VAT Moss Returns

There are several important areas for software companies to keep an eye out for. Below we’ve outlined the top factors to look at:

  • Entity Type Choice – most software companies start up as an S-corp or LLC, but can later find it more advantageous to convert to C-corp status. It important to fully research all types and complications before making any changes.
  • Equity and Debt Transactions – rapidly growing software companies generally have various types of equity and debts, including convertible debt, senior debt, and common stock. Any amounts that are associated with debt will result in a tax deduction – so to know all the details, it’s important to have professional accountancy firms, like The Accountancy Solutions, to help explain it all.
  • Stock Based Compensations – software companies often use stock options and restricted stock to attract and retain key talent. In order to understand the tax ramifications and financial accounting details, our team members can help you decide what is best.
  • Revenue Recognition – due to the fact that software sales have a very high margin and may be infrequent in terms of sales – there are complex rules that software companies need to adhere to.
  • Tax Accounting Methods – tax rules are generally quite flexible in terms of which accounting method is used. So, a careful selection is needed in order to result in substantial tax benefits.
  • Issues Regarding Worker Classification – if your company is looking to hire outside contractors, it’s imperative to have knowledge of the rules surrounding this area. This will minimise any trouble with the government organisations.
  • Multi-State Income Tax/Sales Tax – rather than a local focus, most software companies have a national or international focus. Each country has different laws regarding its income taxation and sales tax – so it’s important to know the rules and regulations to where you are operating and supplying.
  • Mergers and Acquisitions – most software companies are built to be sold or to be acquired by another company. Our team members can help you find the best deals for you if that is the projection that you wish to happen.

All our services are completely customisable to your business requirements and needs. We’ll work with you to decide the best strategies to implement in order to reach your personal and business goals. Software companies often move rapidly through the business cycles. We understand this and work with you to get you to where you wish to be. We aim to build strong relationships with our clients so that we are able to help you succeed. Each one of our team members’ ins fully trained and highly qualified to take our business to the next level.

We like to consider ourselves as mid-market specialists that understand your operating environment. So, we do our best to employ pressure-free and effective solutions to help you reach your goal.

After working with another accountancy firm with never ending problems, I decided to go with TAS, and I'm so glad! After 2 years of working with them, I've never had any problems. Everything is always done on time, and they always keep me informed. Fantastic service with a very professional team!
Lauren White, Brighton
We struggled to find a good accountancy firm to work with, but when we found TAS, we could see they were by far the best. They're so professional and so efficient. Extremely good service. We would definitely recommend to business who are in difficult situation and need good advice regarding their tax issues.
Debbie Bligh, London

GET IN TOUCH WITH US