Product Development Teams Leverage Project Management Software to Earn Annual R&D Tax Credit
IRVINE, CA--(Marketwire - April 8, 2010) - Project Insight, the leading mid-market web-based project management software solution, has some words of advice for companies interested in taking advantage of the U.S. research and development tax credit: use project management tools to determine your tax credit eligibility. If your current project management solution doesn't offer this capability then you are missing out.
"The IRS has been pushing organizations who claim the research and development tax credit to keep meticulous time entry records at the project level. My clients in product development find Project Insight useful for helping them keep track of internal R&D project costs," said James Graf, director, PricewaterhouseCoopers LLP (PwC).
Joseph Isaac, program manager for new product development at PwC client ICU Medical, and his team are one of many organizations that use Project Insight for just this purpose.
"We determine up front whether or not a project qualifies for the tax credit. If it does then we flag the project. To minimize the amount of data entry, we provide detailed descriptions of the tasks as to not require the resource to add any additional info when entering their hours. At the end of each quarter, accounting is provided with a custom report that pulls hours from only those projects flagged. It's astounding to think of the money that we could lose each year by not accurately capturing R&D expenses," said Isaac.
The manufacturing industry in particular, has been most active in taking advantage of the R&D tax credit. According to The Manufacturing Council, American manufacturers, who account for 14 percent of U.S. gross domestic product, typically claim about 60 percent of the credit.
"The research and development tax credit has historically been a tricky challenge for businesses. This is one of the many benefits of our solution, and we are pleased that we can assist companies of all sizes in all industries to overcome this hurdle and get the tax credit they deserve," said Cynthia West, vice president of Project Insight.
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Project Insight web-based project management software brings dispersed project teams together to collaborate on projects in real-time. Project Insight is dedicated to developing and providing project management software and services according to the highest standards in the industry. For more information, visit http://www.projectinsight.net.
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