Founders call for three reasons. All three are fixable.
We work with owner-run software, SaaS, MSP, and IT companies, and with grant-funded R&D teams. Most of them arrive in one of the states below. Find yours, and you'll see what we would do first.
The things a generalist misses once you pass $1M.
The accountant who was fine at $500K usually isn't fine at $3M. Software revenue recognition, R&D credits, sales-tax nexus as customers show up in new states, equity compensation, and the difference between a bookkeeping system that guides you and one that just records history. None of that is in a generalist's daily work, and it shows up as money left on the table.
What we would do first
- Review the last two years of returns for missed credits and elections. The R&D credit alone often pays for the engagement.
- Fix the foundation: a bookkeeping system that is neither too simple nor too complex, in tune with how the company actually makes money.
- Map where you owe sales tax today, and where you will next year.
- Put quarterly tax planning on the calendar, so April stops being a surprise.
An SBIR, a raise, a tax bill you didn't see coming.
Some of the best days in a company's life create the worst paperwork. A grant award comes with government bookkeeping rules and the risk of sanctions if the money is spent incorrectly. A financing round comes with a cap table, investor reporting, and a valuation question. A tax bill comes with a due date. In every case the clock is already running.
What we would do first
- Grant winners: set up SBIR/STTR and DCAA-compliant books before the first report is due, then train your person to keep them that way. See how that went for a robotics client.
- Just raised: build the cap table, set up the accounting to show ownership over time, file what the government needs, and coach the founders on handling investors. The education SaaS story.
- Tax bill: confirm the number, find what was missed, and put a plan in place for paying it and for making sure there isn't a repeat.
Start the QSBS clock before the buyer calls.
You work hard at what you do. When you are ready to sell, you shouldn't have to give away a large part of the proceeds in taxes. Under Section 1202, each shareholder of a qualified small business can exclude up to $10 million of federal gain from the sale of their stock, and nearly every state follows. The catch is a five-year holding period, and the rules have plenty of nuance. Most MSPs and software companies can qualify. Many of their accountants say they can't.
What we would do first
- Check whether you qualify today, and if not, what it would take. A one-month lapse can reset the five-year clock.
- Start planning at least a year before any transaction, beginning with a valuation diagnostic to find what to fix and what to capitalize on.
- Structure the deal: payout schedule, financing, and tax planning for the owner, not just the company.