As your business continues to grow, evolve, and face new challenges, the relationship with your auditor should grow alongside you. Unfortunately, many businesses find themselves outgrowing their current audit relationship or experiencing frustrations that suggest it’s time for a change. 

Selecting the right auditor is one of the most critical financial decisions a business can make. A skilled and compatible audit partner does far more than verify compliance — they provide insights that can strengthen internal controls, identify operational inefficiencies, and help navigate shifting regulatory landscapes. The right auditor serves as both a safeguard for financial integrity and a strategic ally in business development.  

Alternatively, an ill-fitted audit firm can result in missed opportunities, regulatory oversights, unnecessary costs, and strained relationships that stifle your company’s progress. With stakeholders increasingly scrutinizing financial reporting and governance practices, the quality and reputation of your audit relationship directly impacts your company’s credibility in the marketplace. 

While changing auditors is a big decision, it’s also a common and sometimes necessary step toward better financial oversight and business growth. This guide will help you recognize when it’s time for a change, what to look for in a new audit partner, and how to facilitate a smooth transition. 

Recognizing when you’re ready to make a change 

The decision to change auditors rarely happens overnight. Instead, it often emerges gradually as small frustrations accumulate into a realization that your current relationship no longer serves your business needs. 

Consider a CFO who found herself repeatedly explaining industry-specific regulations to her audit team — the same one that worked with her company for five years. Or the controller who dreaded the annual audit because of the revolving door of junior staff who seemed to have the same questions year after year, with little institutional knowledge retained. 

These experiences reflect common warning signs that your audit relationship may need reevaluation: 

Your business is outgrowing your auditor’s capabilities 

As your company expands into new markets, adds complex revenue streams, or pursues acquisition strategies, your audit needs naturally become more sophisticated. If your current firm lacks the technical depth or geographic reach to support these changes, you may find yourself educating your auditors rather than benefiting from their experience. 

Communication breakdowns have become more common 

When you find yourself repeatedly frustrated by unclear expectations, surprise deadlines, or difficulty reaching key members of your audit team, these communication issues can signal a deeper misalignment. A healthy audit relationship thrives on open, transparent dialogue that anticipates your needs and respects your time. 

You’re seeking more value beyond compliance 

The most valuable audit relationships offer more than just a signed opinion. The most successful ones provide strategic insights into your industry, identify operational improvement opportunities, and help you prepare for emerging challenges. If your current auditor focuses solely on compliance without offering broader business perspectives, you’re probably missing some opportunities for growth and optimization. 

Qualities that distinguish exceptional audit partners 

Finding the right audit partner involves looking beyond basic qualifications to identify a firm that can truly elevate your financial reporting and business strategy. 

Technical experience with industry context 

The best auditors bring deep technical knowledge shaped by relevant industry experience. They understand not just accounting standards, but how those standards apply within your specific business environment. When interviewing potential firms, ask about their experience with companies like yours — including size, complexity, and industry-specific challenges. 

This experience manifests in practical ways: fewer unnecessary questions during fieldwork, more insightful recommendations about internal controls, and smoother communication with your finance team because everyone “speaks the same language.” 

Technology that enhances human judgment 

The most effective audit approaches seamlessly blend advanced technology with experienced professional judgment. Ask potential audit partners about their technology investments and how these tools enhance audit quality rather than simply reducing hours. 

For example, a modern audit firm might use data analytics to examine 100% of certain transactions rather than just sampling, leading to more precise findings. They might leverage cloud-based platforms that simplify document requests and reduce email traffic. These technological capabilities should make the audit process more efficient while producing deeper insights about your financial reporting. 

Chemistry and cultural alignment 

Perhaps the most overlooked aspect of successful audit relationships is the interpersonal dynamic between your team and the auditors. During the selection process, pay attention to how potential auditors: 

• Listen to your concerns and ask follow-up questions 
• Adapt their communication style to match your preferences 
• Demonstrate genuine interest in and knowledge of your business beyond the financial statements 
• Show accessibility and responsiveness during the proposal process 

Remember that you’ll be working closely with these professionals during some of your most stressful financial periods. Mutual respect and ease of communication will significantly impact your experience. 

Orchestrating a successful transition 

The way you manage the transition to a new audit firm sets the tone for your future relationship. A well-planned handoff minimizes disruption and positions your new auditor for success. 

Strategic timing and preparation 

Begin planning your transition well in advance of your fiscal year-end. This proactive approach allows adequate preparation while ensuring your new auditor has sufficient time to develop a thorough understanding of your business before the first audit cycle begins. 

Your RFP should clearly articulate not just your technical requirements but also your expectations about communication, accessibility, and value-added insights. Be forthright about any complex accounting matters or areas where you’ve had issues with your previous auditor. This transparency helps potential firms provide realistic proposals. 

Facilitating knowledge transfer 

Once you’ve selected your new auditor, consider organizing a comprehensive onboarding session. This might include: 

• A tour of key facilities to provide operational context  
• Meetings with department heads beyond the finance team  
• Access to prior audit workpapers (with appropriate permissions)  
• Documentation of critical accounting policies and judgments 

This investment in knowledge transfer will pay dividends through a more efficient first-year audit and fewer repetitive questions for your team. 

Setting expectations for partnership 

The most successful audit relationships operate as true partnerships, with clear expectations on both sides. During transition, establish: 

• Communication practices that specify frequency, format, and key contacts  
• Milestone dates that account for your business cycles and reporting deadlines  
• A feedback process that encourages honest, two-way evaluation  
• Metrics for measuring relationship success beyond just meeting deadlines 

These foundational agreements create accountability while building trust between your teams. 

Cultivating ongoing value 

The relationship with your auditor shouldn’t go dormant between audit cycles. The best audit partnerships provide value throughout the year with thoughtful engagement and proactive communication. 

Regular touch points keep your auditor connected to your evolving business needs while addressing emerging issues before they become problems. Consider quarterly check-ins to discuss business developments, regulatory changes, or upcoming transactions that might impact your financial reporting. 

Many audit firms offer experience beyond traditional financial statement audits, from internal control assessments to ESG reporting readiness. By understanding the full range of your auditor’s capabilities, you can leverage their knowledge to address various business challenges. 

Ready for a better audit experience? 

Choosing the right audit partner is a strategic decision that impacts not just your financial reporting but your overall business success. At BPM, we bring the technical experience, industry knowledge, and personal attention that growing businesses need from their audit partner. 

Our approach combines technology with human insight to deliver audits that go beyond compliance — providing you with valuable perspectives to guide your business forward. With extensive experience in nonprofit, life science, technology, real estate, blockchain, and consumer business sectors, we understand the unique challenges and opportunities that matter most to your organization. 

If you’re considering a change in your audit relationship, we invite you to start a conversation with our team. We’ll take the time to understand your unique needs and show you how BPM can deliver an audit experience aligned with your business goals. 

Contact BPM’s audit team today to discuss how we can support your organization’s evolving needs. 

Family offices manage substantial wealth—hundreds of millions of dollars annually. With that complexity, a spreadsheet (or, worse, handwritten documents) won’t cut it.  

Think about it: between the family dynamics, external advisors, daily operating tasks (payroll, staffing, asset management) and strategic financial planning (estate planning, philanthropy, wealth transfer strategies), family offices need a robust system that can keep up and provide them with timely information to facilitate decision making.  

With growing demand for solutions that simplify these processes and provide a comprehensive view of all financial activities, we’ve seen an uptick in family office reporting software.  

By integrating advanced technology into their operations, family offices can achieve greater efficiency, improve decision-making, and foster stakeholder collaboration.  

Today, we’ll explore how family office software is transforming the way single family offices and multi-family offices manage their responsibilities and why adopting these tools is becoming essential for sustainable growth. 

What is family office software? 

Family office software is a specialized technology solution designed to streamline and enhance the management of complex financial portfolios for high-net-worth individuals and families.  

These platforms integrate various functions, such as portfolio management, financial reporting, document management, and risk assessment into a unified system. 

The primary purpose of family office software is to: 

• Centralize wealth data management 
• Improve decision-making through advanced analytics 
• Increase operational efficiency 
• Enhance collaboration among family members and advisors 
• Reduce costs and mitigate risks associated with manual processes 

As family offices oversee increasingly diverse asset classes, including private equity, real estate, and alternative investments, the need for sophisticated tools has become paramount.  

The software provides up-to-date information for agile decision-making in volatile markets and supports the transition of wealth to younger generations who expect digital solutions and comprehensive reporting. 

Moreover, evolving regulations necessitate robust systems for accurate reporting and risk management. Family office software addresses these needs by offering secure platforms to protect sensitive financial data and automating routine tasks, allowing family offices to focus on strategic decision-making. 

Ultimately, family office software increases visibility, transparency, and security—all paramount to its success.  

Core features of the right family office software 

Family office accounting software offers a comprehensive suite of features designed to address the unique challenges faced by high-net-worth individuals and families in managing their complex asset portfolios. 

Data aggregation and centralization 

Modern family office software excels at consolidating financial information from multiple sources, creating a holistic view of assets and investments. This centralization allows family offices to break down data silos and gain a complete picture of their financial landscape. 

Reporting and analytics 

Customizable reporting capabilities are a cornerstone of family office software. These platforms provide real-time insights and performance tracking, allowing family members and advisors to make informed decisions quickly.  

With flexible reporting tools, family offices can create tailored reports that update in real-time, strengthening family communications around wealth transfer and preservation. 

Portfolio management 

Effective asset allocation and tracking are crucial for family offices. Family office software offers sophisticated portfolio management tools, enabling users to analyze down to the smallest transaction or across the most complex portfolio within seconds.  

These platforms often include features for modeling asset allocations, including illiquid assets, to optimally achieve the family’s goals and objectives. 

Risk management and compliance 

Security measures and data protection are paramount in family office software. These platforms implement robust cyber security protocols to protect sensitive financial data. Additionally, they offer regulatory compliance tools to help family offices navigate complex legal requirements across different jurisdictions. 

Multi-currency and multi-entity support 

Family office software is designed to handle global investments and complex ownership structures. It provides consolidated reporting across entities, taking into account multi-asset classes and multi-currency scenarios. This capability is essential for family offices managing diverse international portfolios. 

Human resource management and governance 

Many family office software solutions now include features for employee data management, compliance tracking for multi-jurisdictional offices, performance management tools, and compensation and benefits administration. These additions are crucial as family offices often span multiple locations and require enhanced governance frameworks as they grow. 

By integrating these core features, family office software provides a powerful tool for managing the intricate financial and operational needs of high-net-worth families, enabling them to preserve and grow their wealth across generations. 

Benefits of implementing family office software 

Implementing family office software offers numerous advantages that can transform financial practices and enhance overall operational effectiveness. 

Enhanced operational efficiency 

Family office software streamlines workflows by automating manual tasks, significantly reducing the time spent on routine operations. This automation not only speeds up processes but also minimizes human errors, improving data accuracy across all financial activities. 

Improved decision-making 

With access to real-time data and insights, family offices can make more informed decisions quickly. The software provides enhanced visibility across all assets and investments, allowing for a comprehensive understanding of the family’s financial position. 

Better collaboration and communication 

Family office software facilitates secure document sharing and task management, creating a centralized platform for collaboration. This streamlined communication ensures that family members and advisors can easily share information and stay aligned on financial goals. 

Scalability and flexibility 

As family offices grow, their software needs to adapt. Modern family office solutions offer customization options to meet unique requirements and can easily scale to accommodate increasing complexity in financial management. 

By leveraging these benefits, family offices can significantly enhance their operational capabilities and provide better service to their clients. 

The importance of robust reporting in family office software 

Reporting is one of the most critical functions of a family office, serving as the foundation for transparency, accountability, and informed decision-making.  

Given the complexity of managing multi-generational family wealth, diverse investments, and intricate financial structures, robust reporting is essential to maintain clarity and alignment among stakeholders. 

At its core, effective reporting provides family offices with the tools to monitor performance, assess risks, and make strategic decisions. It fosters trust by offering clear visibility into financial activities and wealth status, ensuring that family members remain informed and confident in the management of their assets.  

Comprehensive reporting also enables family offices to identify vulnerabilities within portfolios, mitigate risks proactively, and align financial strategies with evolving family goals. 

Through innovative reporting, BPM was able to save one family office thousands of dollars. Discover how.  

Key elements of effective family office reporting 

To deliver meaningful insights, family office reporting must encompass several key areas: 

• Investment performance: Reports should track returns against benchmarks and long-term goals using metrics such as IRR (internal rate of return) or ROI (return on investment). This helps families (and their wealth managers) evaluate whether their portfolios are meeting expectations. 
• Asset allocation: A detailed breakdown of how assets are distributed across asset classes—such as equities, private equity, real estate, or alternative investments—provides a clearer picture of diversification within a family’s investment portfolio. 
• Risk exposure: Family offices need to report on market, credit, operational, and reputational risks to anticipate potential challenges. 
• Cash flow analysis: Insight into income streams, expenses, and liquidity positions ensures families can manage day-to-day needs while planning for future obligations. 
• Tax implications: Reporting should include information on tax liabilities across jurisdictions to support compliance and optimize tax strategies. 
• Estate and succession planning: Regular updates on progress in estate plans or wealth transfer strategies help families stay aligned with long-term goals. 
• Philanthropic activities: Tracking charitable contributions ensures that philanthropic objectives are met while providing transparency around impact. 

With the right software, you should be able to see all of these data points with intuitive dashboards. That’s one reason why BPM partners with Sage Intacct for family office software. It has real-time dashboards customized for different stakeholders (e.g., individual family members vs. CFOs or investment managers) plus, dimensional charting for users to analyze data contextually by entity type or asset class. This enables everyone to see what’s most valuable to them and make informed investment decisions. 

The benefits of bringing reporting online 

The shift from traditional, manual processes to digital platforms has fundamentally reshaped family office reporting. This transformation isn’t merely about adopting new tools; it’s about leveraging technology to enhance security, accessibility, and strategic decision-making. 

Here’s a look at how bringing reporting online can revolutionize family office operations: 

• Real-time access: Imagine having up-to-the-minute financial data at your fingertips, accessible anytime through secure online dashboards. With real-time access, family members and advisors can make agile decisions in response to dynamic market conditions. 
• Enhanced security: Data security is of paramount importance to family offices. Digital platforms like Sage Intacct prioritize data protection through robust security measures, including encryption and controlled access measures, safeguarding sensitive financial information from cyber threats. 
• Customization and personalization: Family offices can tailor reporting tools to meet the specific needs of individual stakeholders. Whether it’s a high-level summary for a family member or a detailed analysis for a financial advisor, online reporting allows for personalized insights. 
• Improved efficiency: Say goodbye to manual data entry and cumbersome spreadsheets. Automation reduces manual errors and streamlines workflows, freeing up staff to focus on strategic tasks rather than administrative work. 

With online reporting, family offices can benefit from world-class security and robust capabilities. With it, family members and executives can easily monitor and manage finances for multiple businesses, accelerate monthly closes, and perform roll-up reporting seamlessly. 

Moreover, digital processes minimize risk by automating tasks such as bill payment while streamlining communication, enhancing transparency and trust. The advantages of bringing reporting online are clear. By digitizing family office reporting, family offices gain access to tools that empower them to navigate complexities and achieve their strategic goals with confidence. 

Tips to evaluate family office software  

When selecting family office software, decision-makers must carefully evaluate several critical factors to ensure the chosen solution aligns with their unique needs and operational goals.  

Security and privacy 

Family offices handle highly sensitive financial data, making robust security measures non-negotiable. Look for solutions that employ enterprise-grade encryption to protect data at rest and in transit, along with role-based access controls to limit exposure to authorized personnel.  

Compliance with regulations like GDPR or SEC requirements is equally vital, as non-compliance can lead to severe penalties. Platforms that automate compliance reporting and audit trails provide an added layer of protection against regulatory risks. 

Integration capabilities 

Seamless integration with existing systems—such as CRM tools, tax software, or investment platforms—is essential for maintaining operational continuity. APIs enable custom integrations, allowing family offices to connect niche tools (e.g., private equity portfolio trackers) to their core financial system.  

Additionally, software that facilitates collaboration with external advisors (e.g., legal counsel, tax professionals) through secure data sharing or shared dashboards can streamline cross-functional workflows. 

User experience and accessibility 

Family offices require software that balances power with usability. Intuitive interfaces reduce the learning curve for family members and staff, while mobile accessibility ensures stakeholders can review financial data or approve transactions on-the-go.  

Responsive design adapts to different devices, maintaining functionality across smartphones, tablets, and desktops. Real-time dashboards and on-demand reporting further enhance accessibility, enabling agile decision-making without delays. 

Support and training 

Even the most advanced software requires human support. Prioritize vendors offering dedicated customer support, including troubleshooting assistance and regular system updates.  

Comprehensive training programs—tailored to both staff and family members—ensure smooth adoption. For multi-generational families, training resources that cater to varying technical proficiency levels are particularly valuable. 

By prioritizing these considerations, family offices can select software that not only addresses immediate operational needs but also scales with their evolving requirements. The right solution balances security, flexibility, and usability, empowering families to manage wealth with confidence while maintaining compliance and fostering collaboration. 

Embrace digital transformation in family offices with BPM 

In a world where complexity is the norm for family offices, digital transformation is the key to unlocking greater efficiency and preserving wealth across generations.  

By leveraging tools like Sage Intacct with BPM’s guidance, family offices can simplify operations, gain deeper insights into their finances, and focus on what truly matters—protecting and growing the legacy they’ve built. The time to embrace this change is now. 

BMP evaluates each family office’s processes and procedures to leverage the right tools for the family’s needs. Set up a call with our Family Office team to learn more about how family office software can benefit you. 

Life science companies face increasingly complex challenges when managing their gross-to-net (GTN) calculations and revenue tracking. From emerging biotechnology firms to established pharmaceutical companies, the intricate web of pricing strategies, government regulations, distribution agreements and contractual obligations demands a sophisticated approach to financial management.  

This article explores the critical gross-to-net challenges facing life science companies today, and how partnering with an experienced accounting and advisory firm can help you navigate these obstacles while ensuring compliance, transparency, and financial accuracy. 

Understanding the core challenges 

The heart of the challenge lies in the multifaceted nature of pricing and revenue recognition for life science businesses. Companies must navigate complex rebate structures, government pricing requirements, varying forms of distribution and supply agreements and various contractual obligations while maintaining accurate financial forecasts. The stakes are particularly high for organizations preparing to launch new products or expanding their commercial presence. The margin for error continues to shrink as regulatory requirements become more stringent and market dynamics grow more complex. 

For emerging life sciences companies, the challenge often begins with limited internal resources. Many organizations maintain lean operations to focus on research and development, leaving gaps in their financial management capabilities. Additionally, there can frequently be significant timing differences between GAAP and tax GTN accounting, which coupled with the 2022 legislation requiring R&D capitalization for tax purposes, can lead to unexpected tax liabilities.  

This resource constraint can lead to significant challenges in managing gross-to-net calculations effectively. The situation becomes even more demanding as companies transition from development to commercialization phases, requiring robust financial management systems and processes. 

Key challenges include: 

• Managing multiple contract types and terms with various stakeholders, including distributors, pharmacy benefit managers, and government programs. These relationships require careful monitoring and precise calculation of rebates, chargebacks and other pricing adjustments. The complexity increases with each new market entry and additional distribution channel. 
• Maintaining accurate data collection and integration across multiple systems and sources. Companies must ensure their GTN calculations reflect real-time information from various channels while maintaining data integrity throughout the process. This challenge grows exponentially as organizations expand their product portfolios and market presence. 

“Estimating gross-to-net accruals can be extremely challenging and time-consuming due to the multiple types of rebates, discounts, and allowances—each with terms and timing that can vary significantly based on the distribution channel and government program. These estimates must be made and recorded at the time of initial revenue recognition (i.e., when a product is shipped or delivered to the customer, typically a distributor or pharmacy).  While some GTN rebates, discounts, and allowances are earned upon shipment or delivery to the immediate customer, others may not be billed for weeks or months. This delay occurs because inputs typically depend on the end recipient of the drug, as well as factors such as government programs, patient insurance policies, and third-party claim processors, which ultimately bill the company.” – Kendall Kuhn – Partner, Assurance 

• Implementing effective forecasting methodologies presents another significant hurdle. Life sciences companies need reliable predictions of their net revenue to make informed business decisions, yet the complexity of pricing arrangements and market dynamics can make accurate forecasting seem like an insurmountable task. The introduction of new payment models and value-based contracts further complicates these forecasting efforts. 
• Navigating the regulatory landscape adds another layer of complexity to GTN management. Life sciences companies must comply with various state and federal regulations while accurately reporting their financial position Even minor discrepancies in pricing calculations can trigger a cascade of issues, affecting everything from cash forecasts to compliance requirements. The increasing scrutiny of drug pricing and transparency requirements adds additional pressure to maintain precise calculations and clear documentation. 

How do these challenges impact life science companies? 

While the need for financial reporting under U.S. GAAP standards can often be nuanced, the impact of these challenges extends beyond financial reporting. Inaccurate gross-to-net calculations can affect: 

• Strategic decision-making around product launches and market expansion efforts, potentially leading to missed opportunities or misallocation of resources. Companies need precise financial data to evaluate market opportunities and make informed investments in their product pipeline. 
• Compliance with government pricing programs and regulatory requirements, which could result in significant penalties and reputational damage if not managed properly. The consequences of non-compliance continue to grow more severe, making accurate calculations increasingly critical. 
• Working capital management and cash flow forecasting, affecting the company’s ability to fund ongoing operations, potential tax bills and future growth initiatives. This becomes particularly crucial for companies managing multiple products across various stages of development and commercialization. 
• Providing accurate forecasting of top-line growth in revenues and margins is key to investor relations and fundraising activities, and can be impactful to share pricing. 
• Companies must evaluate the accuracy of market reports, as well as customer and distributor data, used to record revenues and chargebacks or if adjustments to such data is required. 

For example, there can be timing differences between the wholesale acquisition costs (“WAC”) charged at the time of the initial ex-factory sale to distributors and the WAC in effect at the time product is sold by distributors to pharmacy or dispensed by the pharmacy to end patients. As certain rebates may be calculated at the rate in effect upon the ultimate sale to end customers or patients, which can result in higher GTN ratios relative to historical trends. 

Building a Sustainable Foundation 

Companies seeking to overcome these challenges need a comprehensive approach that addresses both immediate operational needs and long-term strategic objectives. This approach should encompass advanced analytics capabilities, robust data management systems, deep industry knowledge and professional audit oversight. Success requires not only technological solutions but also a thorough understanding of industry dynamics and regulatory requirements. Organizations must also consider the scalability of their solutions as they grow and enter new markets. 

The implementation of effective GTN management systems requires careful consideration of various factors, including data integration capabilities, reporting requirements, and compliance needs. Companies must also ensure their chosen solutions can adapt to changing market conditions and evolving regulatory requirements while maintaining accuracy and efficiency in their calculations. 

Working with BPM   

BPM has extensive experience advising and auditing companies with GTN complexities and understands the unique challenges they face.  We combine decades of life sciences industry experience with cutting-edge technology to help companies navigate GTN challenges and tax planning.  By partnering with BPM, organizations gain access to comprehensive solutions, from implementing robust calculation methodologies to developing accurate forecasting models—driving strategic growth and long-term success in today’s competitive market.  To find out more, contact us. 

In the fast-paced food and beverage industry, it’s easy to fall into routine tax planning. While focusing on quality products and operations, valuable tax savings opportunities may be slipping through the cracks.  

5 Top Tax Savings for Food and Beverage Manufacturers 

Here are five key areas where your business could be leaving money on the table. 

1. Research & Development Tax Credits: Beyond New Products 

Many mistakenly believe R&D credits apply only to groundbreaking innovations. However, the permanent R&D tax credit covers various activities in food and beverage manufacturing, including: 

• Recipe and formulation development to improve taste, shelf life, or nutritional content  
• Enhancing manufacturing processes for efficiency or food safety 
• Developing new or improved packaging for freshness or sustainability 
• Developing and implementing quality control systems 

For growing businesses, recent changes to R&D credit provisions are particularly attractive. Companies with less than $5 million in gross receipts in the current year, and those that do not have any gross receipts in the prior year or earlier, are able to offset up to $500,000 of Social Security and Medicare tax liabilities. Any R&D credits calculated in excess of the initial $500,000 may also be used against income tax liabilities or carried forward for up to 20 years until fully utilized against future income tax liabilities. 

2. Export Incentives Through IC-DISC 

If your products reach international markets, an Interest Charge-Domestic International Sales Corporation (IC-DISC) can reduce your tax burden. This strategy allows qualifying export income to be taxed at the lower capital gains rate (typically 20%) rather than higher individual income tax rates (up to 37%). 

The primary benefit of the IC-DISC is the ability to convert the ordinary income to qualified dividend income, which is taxed at the lower rate as seen above. The exporting company pays a commission to the IC-DISC, which is deductible as an ordinary business expense. This reduces the company’s taxable income, which is subject to the ordinary income tax rate. The IC-DISC being an exempt entity, can then distribute its earnings to its shareholders as a qualified dividend. These dividends which are then generally taxed at 20% for most taxpayers plus an additional 3.9% net investment income tax for high income earners. 

Despite concerns about compliance costs, businesses with export revenues typically see tax savings outweighing these costs. This structure is particularly valuable for: 

• Companies exporting specialty food products 
• Beverage manufacturers with international distribution
• Businesses with expanding global sales channels 
• Manufacturers supplying food service operations abroad 

3. State Tax Nexus Considerations 

In the age of digital commerce, food and beverage manufacturers, like many other businesses, may face tax obligations in states where they don’t have a physical presence. This is due to the concepts of state income tax nexus and sales tax nexus, which have evolved significantly with the rise of e-commerce and direct-to-consumer sales. 

• Income Tax Nexus: Historically nexus was based on physical presence within a state, however now many states have adopted economic nexus standards. This means that even without a physical presence, a business can establish a nexus through significant economic activity within a state. Thus, creating an income tax return filing obligation 
• Sales Tax Nexus: Like income tax nexus, sales tax nexus creates an obligation to collect and remit sales tax, as well as file the necessary sales tax returns, even if some sales are not subject to sales tax. The 2018 Supreme Court decision in South Dakota v. Wayfair, Inc. allowed states to impose sales tax based on economic activity rather than physical presence. Most states have since adopted these standards. 

One of the key advantages of the manufacturing industry is the ability to leverage numerous sales tax exemptions, leading to significant cost savings. Many states offer exemptions for items integral to the manufacturing process, such as machinery, equipment, and consumable supplies in states like California, Florida, New York, and Texas. This can lead to a significant reduction of overall tax liability and increased profitability. 

A comprehensive nexus study can help: 

• Identify state tax filing requirements 
• Utilize voluntary compliance programs to reduce penalties
• Recover overpaid taxes 
• Optimize multi-state tax strategy 
• Ensure audit readiness with proper documentation 

State income tax nexus analysis helps corporations identify tax-saving opportunities by strategically shifting income and optimizing tax planning across different states, ensuring compliance and minimizing tax liabilities. 

4. Work Opportunity Tax Credit (WOTC) 

High employee turnover in the food and beverage industry makes the WOTC especially valuable. This credit provides up to $9,600 per qualifying employee, including: 

• Veterans 
• Long-term unemployed individuals 
• Federal assistance recipients 
• Summer youth employees 
• Food Stamp recipients 
• Long-term Family Assistance recipients 
• Supplemental Security Income recipients
• Other targeted groups 

By incorporating WOTC screening into your hiring process, you can maximize tax benefits while building a diverse workforce. 

5. Qualified Small Business Stock (QSBS) 

A qualified small business stock (QSBS), also known as section 1202 stock, exclusion is a tax benefit that applies to eligible shareholders of a qualified small business.  The QSBS exclusion incentivizes investment in small businesses, including those in the food and beverage industry, by offering substantial tax benefits.  Eligible shareholders may exclude up to 100% of capital gains from federal taxes upon selling or exchanging QSBS. 

To qualify, as a Qualified Small Business Stock: 

• Be a domestic C Corporation 
• At least 80% of the company’s assets must be in actively used in qualified trade or business operations 
• The stock must be an originally issued stock by a C Corporation after August 10, 1993 and not acquired from another shareholder 
• Hold the stock for at least five years 
• Have total assets of $50 million or less before and after issuing stock 

The QSBS exclusion can exempt capital gains up to $10 million or 10 times the investment’s adjusted basis, whichever is greater. However, not all states conform to federal QSBS rules—for example, New York does, while California does not. 

Take action to maximize your tax savings 

Don’t let valuable tax savings slip away. BPM’s food and beverage industry specialists can help identify and implement tailored tax strategies. Contact us today for a comprehensive review of your tax position and discover potential savings. 

A knowledgeable tax advisor can craft an optimal tax strategy, minimize liabilities, identify valuable credits, and enhance cash flow, ultimately boosting profitability and ensuring compliance with complex tax regulations. 

Ready to optimize your tax strategy? Reach out to BPM’s Food and Beverage team to discover how we can support you. 

Taking proactive measures to protect and shore up your digital infrastructure saves your business time, money, and reputational damage. The financial risks alone associated with neglecting cybersecurity assessments are staggering.  

According to an IBM study, the average cost of a cyber attack was $4.88 million in 2024—a 10% bump year over year and the highest number on record. Regular security measures like vulnerability scanning and penetration testing can significantly mitigate your company’s risk exposure.  

But what’s the difference between penetration testing and vulnerability scanning, and which makes sense for your company to prioritize? Let’s take a closer look.  

Understanding penetration testing 

Penetration testing, or “pen testing,” is a simulated cyberattack against a computer system, network, or web application designed to assess its security vulnerabilities. It is an authorized and controlled process that involves active probing and testing of defenses through coordinated cyberattacks, mimicking the techniques used by real-world attackers to identify potential weaknesses. 

There are several types of pen tests, including: 

• Network infrastructure testing 
• Web application testing 
• Social engineering testing 
• Physical testing 

The goal of penetration testing is to proactively identify security weak spots and fix them before bad actors discover them.  

Benefits of penetration testing 

Companies of any size or scale benefit from pen tests. Some of the most prevalent benefits include:  

1. Get a true sense of your security defenses: Penetration testing provides a realistic assessment of an organization’s defenses by simulating actual attack scenarios. This hands-on approach helps organizations understand how their systems and networks might fare against sophisticated cyberattacks. 

2. Identify key vulnerabilities: It helps identify vulnerabilities that could be exploited by attackers, allowing organizations to address these weaknesses proactively and strengthen their overall security posture. 

3. Provide insights into business impacts of existing security strategies: Penetration testing offers insights into the potential business impacts of successful attacks and necessary remediations. This information is invaluable for making informed risk management decisions and allocating resources effectively. 

4. Helps companies remain compliant: Many industry regulations and standards, such as PCI DSS, HIPAA, and ISO 27001, mandate regular penetration testing. Conducting these tests helps organizations maintain compliance and avoid potential regulatory fines or penalties. 

Pen testing also helps companies avoid significant financial losses or reputational damage due to cyberattacks. Interestingly, without regular pen tests, companies may experience increased difficulty in securing cyber insurance coverage.  

“Pen testing provides an opportunity to collaboratively partner with a highly specialized team that thinks like malicious hackers. By gaining their insight, as an extension of your team, you can uncover unknown-unknowns and inherent blind-spots.” – Josh Scmidt – Partner, Advisory and Cybersecurity Leader 

Challenges of penetration testing 

For all the benefits of penetration testing, there are some challenges companies need to keep in mind with this practice:  

• Pen testing is resource intensive: Penetration testing requires significant resources and experience, which can be challenging for organizations with limited budgets or personnel. 
• It will cost companies time and money: It can be time-consuming and costly, especially if conducted frequently or on a large scale. 
• You may experience operational disruptions: If not properly managed with experience, penetration testing may disrupt operations, causing system outages or data loss. This risk underscores the importance of working with experienced pen testing professionals like BPM who understand how to conduct thorough tests while minimizing potential disruptions.  

Frequency and duration of penetration testing 

Penetration tests should be performed regularly, ideally every 6-12 months, or after significant system changes such as: 

• Integrating new software or hardware 
• Altering network configurations or adding new devices 
• Upgrading critical applications or platforms 

The duration of a penetration test varies based on the scope but typically ranges from a few days to several weeks. 

Pen testing and compliance requirements 

Penetration testing is often a requirement for compliance with various regulatory standards. For instance, industries like finance and healthcare must adhere to frameworks such as PCI DSS and HIPAA, respectively.  

BPM’s services can help organizations meet these compliance obligations by providing tailored penetration testing solutions that align with specific regulatory needs. 

Understanding vulnerability scanning 

Vulnerability scanning is a critical component of cybersecurity that involves using automated tools to identify potential vulnerabilities in systems, networks, or applications. This process provides a high-level analysis and identification of problem areas, allowing organizations to proactively address security weaknesses before they are exploited by attackers. 

Vulnerability scanning helps organizations monitor changes in their security posture, prioritize remediation efforts based on the severity of identified vulnerabilities, and maintain compliance with regulatory standards. 

Benefits of vulnerability scanning 

Vulnerability scanning offers several key benefits that make it an indispensable tool for maintaining a robust cybersecurity posture: 

• It’s quick and cost-effective: Vulnerability scanning is a quick and cost-effective way to identify and track known vulnerabilities. It automates the process of detecting security weaknesses, saving time and resources compared to manual assessments. 
• Businesses can run scans frequently (easily): Vulnerability scans can be performed frequently to monitor changes in an organization’s security posture. This regular monitoring helps ensure that new vulnerabilities are identified promptly, allowing for timely remediation. 
• Establishes a roadmap for issue remediation: By providing detailed reports on vulnerabilities and their severity levels, vulnerability scanning helps organizations prioritize remediation efforts. This enables them to focus on addressing the most critical vulnerabilities first, thereby reducing overall risk exposure. 

The ease of running vulnerability scans means companies can leverage them as needed across any number of assets to ensure their risk levels align with their risk tolerance, compliance requirements, and strategy.  

Challenges of vulnerability scanning 

While vulnerability scanning is a powerful tool, it also comes with some challenges, especially compared to penetration testing: 

• Limited depth of analysis: Vulnerability scanning may not provide an in-depth analysis of vulnerabilities or simulate actual attacks. It primarily identifies potential weaknesses without exploiting them, which can leave many vulnerabilities undetected, such as system misconfigurations. 
• False positives and negatives: Vulnerability scans can generate false positives (incorrectly identifying non-existent vulnerabilities) and false negatives (failing to detect actual vulnerabilities). Managing these inaccuracies requires careful validation and verification processes. 
• Need for regular updates: Vulnerability scanning tools must be regularly updated to stay effective against new threats. This includes keeping databases of known vulnerabilities current and ensuring that scanning tools can detect emerging threats. 

It’s helpful for businesses to have a dedicated cybersecurity team (whether in-house or outsourced) to keep track of these ongoing scans, results, and optimization efforts.  

Frequency and duration of vulnerability scanning 

Vulnerability scans should be performed regularly to maintain an optimal security posture. The frequency depends on the environment’s complexity and risk profile: 

• For dynamic environments or high-risk industries, weekly scans may be necessary. In less complex settings, monthly scans can suffice. 
• Scans should also be conducted after significant system changes, such as integrating new software or hardware, to ensure that no new vulnerabilities are introduced. 

The duration of a vulnerability scan typically ranges from a few hours to a few days, depending on the scope and complexity of the systems being scanned. 

Vulnerability scanning and compliance requirements 

Vulnerability scanning is often a requirement for maintaining compliance with various regulatory standards. For instance, frameworks like PCI DSS, SOC 2, and ISO 27001 mandate regular vulnerability assessments to ensure that organizations maintain robust security controls and mitigate potential risks.  

By incorporating vulnerability scanning into their security practices, organizations can demonstrate compliance and avoid potential penalties or legal consequences. BPM’s services can help organizations meet these compliance obligations by providing tailored vulnerability scanning solutions that align with specific regulatory needs. 

Penetration testing vs vulnerability scanning: which is right for you? 

When it comes to choosing between penetration testing and vulnerability scanning, the decision largely depends on your organization’s specific goals and needs. Both methods are valuable tools in maintaining a robust cybersecurity posture, but they serve different purposes and offer distinct benefits. 

“When considering what the next project should be is, consider if you’ve ever had basic scans performed. If not, often times low-hanging items can be detected without the expense of a pen test. Conversely if you already have scans pen testing will highlight more flaws that leverage blended attacks. Mature organizations often employee a hybrid approach with regular scans in-between pen tests.” – Josh Schmidt 

As you weigh your options, consider your company’s: 

• Security goals and priorities: Vulnerability scanning is ideal for regular monitoring identifying potential issues, whereas penetration testing offers a deeper, more realistic assessment of security defenses by simulating actual attacks. 
• Complexity and data requirements: Penetration testing is more complex and requires more data and resources compared to vulnerability scanning. It involves active probing and exploitation of vulnerabilities, which demands specialized experience and equipment. In contrast, vulnerability scanning is generally less resource-intensive, relying on automated tools 
• Compliance considerations: Both methods are essential for compliance in industries like finance, healthcare, and government. For instance, frameworks such as PCI DSS and HIPAA mandate regular vulnerability assessments and penetration testing to ensure robust security controls and mitigate potential risks. 
• Budget: Penetration testing is generally more expensive due to its complexity and the need for specialized experience, whereas vulnerability scanning is typically more cost-effective and can be performed frequently. 
• Risk profile: High-risk environments, such as those handling sensitive financial or healthcare data, may require more frequent penetration testing to ensure thorough security assessments. Vulnerability scanning can provide regular monitoring for organizations with lower risk profiles or those looking to maintain compliance without the need for in-depth assessments. 

While both methods are indispensable in cybersecurity, the choice between them should be guided by your organization’s specific needs, risk profile, and compliance requirements. 

Increase security by combining vulnerability scanning and penetration testing 

Organizations seeking a comprehensive security posture often find that combining vulnerability scanning and penetration testing offers synergistic benefits.  

Leveraging both methods provides several key advantages: 

• Comprehensive security posture: This combination provides regular monitoring through vulnerability scanning and in-depth assessments via penetration testing, ensuring a comprehensive understanding of the security landscape. 
• Proactive risk management: By combining these methods, organizations can proactively identify vulnerabilities, prioritize remediation based on severity, and thoroughly assess critical vulnerabilities. 
• Compliance and risk reduction: Both methods are crucial for maintaining compliance and reducing risk exposure. Vulnerability scanning ensures ongoing compliance, while penetration testing meets more stringent regulatory requirements. 

This integrated approach allows organizations to leverage the strengths of each method, ensuring comprehensive security monitoring, proactive risk management, and enhanced compliance. 

Improve your cybersecurity posture with BPM 

Protecting your organization’s digital assets. Both penetration testing and vulnerability scanning play critical roles in maintaining a robust security posture by identifying vulnerabilities, enhancing compliance, and reducing risk exposure. 

BPM’s comprehensive penetration testing services are designed to empower organizations in achieving a strong cybersecurity foundation. Our proven track record across various sectors, combined with our commitment to delivering actionable insights and integrated solutions, makes us a trusted partner in cybersecurity. 

“Our clients become our partners throughout their journey with cybersecurity. Client needs and priorities are dynamic and no two projects are ever the same. By providing customized and tailored assessments we strive to balance cost, time, compliance, and actionable reporting.” – Josh Schmidt 

Contact us to learn how BPM can help safeguard your organization’s digital future. 

For nonprofits, grants provide essential funding to keep programs running and expand their impact. However, securing a grant is only the first step—managing it helps to support long-term success and build credibility with funders. 

Grant management is the process of applying for, administering, and overseeing grant funding to ensure it’s used effectively and in compliance with funder requirements. It covers the entire grant lifecycle—from identifying opportunities and submitting applications to tracking expenses, meeting reporting obligations, and closing out or renewing grants successfully. 

Without a structured process, your organization risks misallocating funds, missing reporting deadlines, or failing to meet compliance requirements—all of which can jeopardize future funding opportunities. 

Understanding the grant management process 

A well-organized grant management process helps your nonprofit use funds efficiently while building credibility with funders. Here’s how to navigate each key phase in four steps: 

1. Identifying grant opportunities 

Find grants that align with your nonprofit’s mission and funding needs. These could be: 

• Project-based grants for specific initiatives 
• General operating support to cover day-to-day expenses 
• Capacity-building grants to strengthen internal systems 

Targeting the right type of grant helps ensure resources are used strategically and efficiently. 

2. Application and proposal development 

A compelling grant proposal will help you secure funding. To create one: 

• Gather all required documentation 
• Clearly outline how the funds will be used 
• Set measurable objectives to demonstrate impact 

Your proposal should make a strong case for why your nonprofit deserves funding and how it will deliver tangible results. Pro tips: A strong basic application can often be used for or as a basis for many applications! Also, be sure to save a copy of what was submitted specifically as grant documents often refer back to them.  

3. Implementation and fund tracking 

Winning the grant is just the beginning—now it’s time to manage the funds effectively. This means you should: 

• Allocate the budget according to the agreed terms 
• Track all expenses and donor restrictions carefully to maintain compliance 
• Keep detailed financial records to protect your nonprofit’s reputation 

4. Reporting and compliance 

Grant funders expect transparency. Regular updates, financial reports, and progress summaries help demonstrate responsible grant management. By keeping funders informed and addressing challenges proactively, you build trust and improve your chances of securing future grants. Complete and timely documentation will also make the audit process much easier when questions are asked months later. Failure to stay compliant with donor restrictions or not saving your documentation to show that you were complying, can create more work down the road. 

The grant management lifecycle 

To manage grants effectively, follow a structured process from start to finish. The grant lifecycle consists of several key phases that help your nonprofit stay compliant, allocate resources wisely, and build strong relationships with funders. 

Pre-award phase 

Before applying for a grant, your nonprofit needs a clear plan: 

• Assess your funding needs: identify gaps in your budget and determine how grants can support your mission 
• Research grant opportunities: look for funders whose priorities align with your programs paying attention to barriers that might need to be met and what costs are and are not allowable in each opportunity 
• Prepare strong applications: develop a clear proposal with measurable goals, a budget breakdown, and a compelling case for funding 

A well-prepared application not only improves your chances of securing a grant but also sets the stage for a smooth implementation process. 

Award phase 

Winning a grant is an achievement, but now the real work begins: 

• Launch the funded project: execute your program based on the approved proposal 
• Track expenses and maintain compliance: keep detailed records of every grant-related transaction 
• Update funders on progress: regular reporting reassures funders that their money is making an impact 

This stage requires careful financial oversight and open communication to maintain ongoing compliance and future funding opportunities. 

Close-out phase 

As the grant period comes to an end, your nonprofit should complete final reporting and evaluations with attention to donor deadlines for reporting and renewal opportunities: 

• Submit final reports: provide a detailed breakdown of how funds were used, major accomplishments, and challenges encountered 
• Evaluate impact: measure program results against initial goals and gather insights for future applications 
• Document lessons learned: capture best practices and strategies that worked well to streamline future grant management efforts 

Successfully closing out a grant demonstrates accountability and strengthens your nonprofit’s reputation, increasing your chances of securing future funding. 

Common challenges in grant management 

Even with a strong plan, managing grants comes with challenges. From limited resources to tracking multiple funding streams, your nonprofit could face hurdles that slow its progress. 

Limited resources 

Your team is likely stretched thin, balancing tight budgets with heavy workloads. This can make it difficult to dedicate sufficient time for grant management, leading to missed deadlines or reporting issues. 

How to overcome it: 

• Automate routine tasks with grant management software to reduce administrative burden 
• Leverage outside guidance by working with grant consultants or external accountants when needed 
• Invest in training to upskill your team and improve efficiency 
• Consider outsourced accounting services as an alternative to—or to augment—your in-house accounting staff. 

Tracking multiple grants simultaneously 

Managing several grants means juggling different deadlines, reporting requirements, and budget restrictions. Without a centralized system, things can slip through the cracks. 

How to overcome it: 

• Use grant portfolio management tools to track all grants in one place 
• Create a standardized reporting process to manage consistency across funding sources 
• Align grant activities with organizational goals so funding decisions support long-term sustainability 

Communication gaps 

A lack of internal communication can lead to confusion, duplicate work, and missed tasks—disrupting your grant management process. 

How to overcome it: 

• Schedule regular check-ins to help ensure everyone is aligned 
• Use collaboration tools that allow teams to share real-time updates and key deadlines 
• Assign clear responsibilities to avoid duplication of work 

How Sage Intacct supports effective grant management 

Managing grants effectively requires more than just staying organized. You should maintain compliance, accuracy, and efficiency while keeping your focus on the mission. That’s where Sage Intacct, an AICPA-preferred software, makes a difference. 

Sage Intacct provides specialized solutions that meet the unique financial management needs of nonprofits, from tracking donations and grants to ensuring compliance with complex regulations. Its designation as AICPA-preferred software highlights its reliability and adherence to high accounting standards. 

Key features for nonprofit grant management 

Sage Intacct’s specialized tools address the financial needs of nonprofits managing complex grant portfolios: 

Fund accounting: Track multiple funding sources separately with real-time fund balances, restricted fund tracking, and automated allocation of funds across programs. 

Grant tracking: Monitor the complete lifecycle of each grant, from application to reporting, ensuring compliance with funding requirements and obligations. 

Real-time reporting: Create customizable dashboards that display key performance indicators relevant to your organization, such as program expenses and revenue by funding source. 

Compliance support: Prepare for audits with comprehensive audit trails, automated compliance reporting, and built-in controls that reduce risks of errors. 

With these capabilities, Sage Intacct enables nonprofits to streamline operations, maintain financial integrity, and focus on achieving their mission rather than getting stuck in spreadsheets and manual tracking. 

Partnering with BPM for Sage Intacct implementation 

Implementing an accounting system for your nonprofit requires specialized skills and knowledge to maintain compliance, efficiency, and ease of use. That’s where BPM comes in. 

Our team of Sage Intacct specialists understands the unique challenges of nonprofit financial management and provides end-to-end implementation support. From configuration to training, we support your organization gets the most out of Sage Intacct’s capabilities. We also have an experienced team of accounting professionals who can serve as an extension of your team through our outsourced accounting service offering. 

We work closely with your team to: 

• Configure Sage Intacct to match your specific grant management workflows 
• Integrate with other systems like donor management and CRM platforms 
• Train your staff to maximize the software’s potential 
• Provide ongoing support as your grant portfolio evolves 

With BPM’s guidance, your nonprofit can transform its grant management process, ensuring every dollar is tracked accurately and used effectively to advance your mission. 

Ready to streamline your grant management? 

Don’t let inefficient grant management processes hold your nonprofit back. Contact BPM today to learn how Sage Intacct can support your organization’s financial management needs and help you make a greater impact in your community. 

Our nonprofit accounting specialists are ready to help you implement a solution that brings clarity, compliance, and confidence to your grant management process. 

As a business owner, your head must be spinning with the shifting economic landscape and the unprecedented pressure to adapt and evolve. With the Trump administration’s flood of executive orders, challenges to programs such as DEI, and tariffs expected to disrupt global trade, you’re probably feeling the pressure to evaluate your entire operation. The human capital consulting market is particularly volatile due to these macro factors, creating both challenges and opportunities. 

While you might be tempted to make changes quickly, these decisions demand strategic consideration rather than a reactive response. Some business owners are already making moves such as cutting back on “non-essential” expenses or putting long term initiatives on hold.  And some businesses are ending engagements with trusted advisors, such as specialty contractors or consultants. 

While this may feel like the “low hanging fruit”, this approach will likely have significant unintended consequences.  Resilience in times of uncertainty is often rewarded while taking a more short-sighted approach can hamper long-term growth.  Seasoned HR consultants are especially adept at guiding businesses through critical transformations, providing valuable strategic and operational perspectives that are more critical now than ever. 

Strategic evolution: Building value through intentional change 

This is not the time to go it alone or “move fast and break things.” This is when you need a reliable partner who can chart a course and to steer your business to where it needs to be. Today’s CEOs face the dual challenge of transforming their business while maintaining performance—a balancing act that requires expert guidance. Let’s take a closer look at how. 

Make strategic evaluations, not reactive decisions 

When facing economic pressure, your initial instinct may be to cut costs. However, sustainable transformation requires a more nuanced approach than simply trimming headcount. 

Rather, you need to take a holistic view by conducting a thoughtful strategic evaluation that involves: 

• Analyzing your full cost structure objectively and comprehensively 
• Making decisions based on data and performance metrics 
• Understanding the downstream impacts of each potential change 
• Identifying opportunities for optimization that preserve core competencies 
• Keeping an eye on your key initiatives and being open to thinking outside of the box 

Skilled and experienced HR consultants have keen insights, identifying essential investments and opportunities to create efficiencies. Having an outside perspective – from an individual with exposure to deep and wide industry knowledge – provides an informed assessment that management often can’t deliver while focused on the day-to-day operations. 

Leverage policy shifts and regulatory changes 

The Trump administration’s initiatives are creating both challenges and opportunities for businesses. While reduced regulations around DEI and corporate compliance may offer more flexibility and an opportunity for savings, an abrupt change or elimination of these programs can impact how your customer, colleagues and community view and/or patronize your business. 

Rather than taking drastic action, consider what can and should be done to retain your high performers, refine your focus, and reinvest in who you are and what you do. 

Leaders need help understanding the legal implications and overall risks of swift organizational changes; HR consultants address these matters with skilled guidance that balances business objectives with best practices and legal considerations. 

“It’s not uncommon where a client has a course of action in mind and are committed to it.  We advise clients to slow down the conversation, analyze the data available, assess the risk of each individual (and the collective) decision and ultimately land on a revised plan that everyone can get on board with and is excited about. We serve as the bridge between business ambitions and ethical practice, ensuring that every decision is strategic versus emotional or rushed.” – Stacy Litteral – Partner, Advisory – HR Consulting 

Identify hidden opportunities for optimization and talent 

One of the most valuable contributions HR consultants make is spotting optimization opportunities that might be tough to see from the inside. Their specialized knowledge and methodologies allow them to: 

• Objectively evaluate team and individual performance using established benchmarks vs. relying on instincts or emotions.  
• Identify gaps that might be limiting productivity or innovation and provide resources for reskilling or retraining.
• Recommend technological solutions that can streamline and automate operations and reduce manual workloads. 
• Create data-driven compensation structures that align with market rates while controlling costs.
• Uncover hidden talent within your organization that may be underutilized or overlooked.

Additionally, the most valuable external HR consultants aren’t just one-and-done. They provide ongoing support during and after restructuring, building longer and deeper relationships with clients that enable sustained transformation.  

Balance reduction with retention 

Challenging times present opportunities for meaningful transformation.  But successful transformations don’t just cut costs — they assess and reallocate resources to maximize value with your values and culture in mind. This is where expert HR guidance becomes particularly crucial. 

Strategic HR consultants can help you: 

• Analyze existing skill inventories against future business needs to identify gaps and opportunities 
• Develop targeted reskilling programs to move existing employees into high-demand roles 
• Implement mentorship and knowledge-sharing programs that accelerate skill development and retain institutional knowledge 
• Foster AI literacy among employees to enhance productivity and drive business outcomes 

The right approach balances immediate financial needs with longer-term organizational health. The right HR consulting partner can uncover alternative delivery models that maintain your most essential functions while reducing fixed costs.  

Align for growth with strategic rightsizing 

When executed properly, organizational transformation doesn’t just weather current challenges — it establishes a more agile foundation for future growth. This forward-looking perspective is where HR consultants create lasting value. 

Strategic HR partners serve as architects of sustainable business evolution. They work closely with leadership to align workforce planning with long-term business strategy, ensuring that talent acquisition and development efforts support your company’s vision. By creating more efficient organizational structures that flex and scale with growth, they help eliminate bottlenecks and redundancies while retaining institutional knowledge. 

Beyond structural improvements, HR consultants develop new leadership capabilities throughout your organization. They identify emerging leaders, nurture their potential, and equip them with the skills to meet new challenges. This leadership development work is supported by performance management systems that sustain improvements over time, creating a culture of continuous growth and adaptation. 

Unleash the power of your people 

In good times or bad, your people remain your most valuable asset. Having an experienced and trusted HR consultant provides a vital resource to help you retain, revitalize, and reposition your team, regardless of the business climate. 

 That said, HR consultants specialize in bringing stability to unsteady times, helping build a resilient organizational structure, operational framework, and company culture. An experienced HR business consultant allows your employees to reach their highest potential by: 

• Cultivating employee growth paths — Personalized development plans that help team members advance their careers within your organization 
• Amplifying employee voices — Effective feedback systems that ensure your people feel heard and valued at every level of the organization 
• Enhancing workplace wellbeing — Programs that support mental health, work-life balance, and overall employee satisfaction 
• Fostering a sense of belonging — Initiatives that help all employees feel respected, supported, and empowered to contribute 
• Developing AI literacy and skills — Preparing your workforce to adapt to and thrive with emerging technologies 

Create a clear roadmap to navigate change 

Business owners in 2025 are facing a world of extraordinary uncertainty and anxiety. But this is also a time to take a strategic approach to transformation. 

The future of human capital consulting will increasingly involve the use of data and AI to create insights and integrated solutions. However, managing the integration of AI and your human workforce is a critical challenge that requires expert guidance. Effective implementation demands connected conversations that consider the human capital lens to help business investments deliver real impact. This means thinking about how AI investments will drive adoption, reward mechanisms, new skills, and career paths. 

Rather than viewing HR consultants as a line item, consider them your essential business partners. Their experience, objectivity, and specialized knowledge can mean the difference between random cost-cutting and setting up your company for sustainable success. With their help, you can develop metrics that align with your desired business impact and clearly articulate the value of transformation initiatives. This delivers measurable value that validates your investment in consulting services. 

Take the next step and move forward with BPM  

If you’re facing organizational changes or seeking ways to optimize your business in today’s challenging environment, BPM can help. Our team provides a complimentary initial assessment to identify specific opportunities for your organization. Contact BPM’s HR team to discuss your unique challenges and how we can help you transform them into opportunities. 

You can structure your family office in many ways. The trick is to structure it in a way that makes the most sense for your family unit, assets, and legacy goals—something a lot easier said than done.  

As families seek optimal structures for their financial command centers, the Limited Liability Company (LLC) has emerged as a smart choice. LLCs offer a blend of flexibility, protection, and tax advantages that resonate with the unique needs of affluent families.  

This structure allows for customized management and profit distribution, making it particularly appealing for families with diverse income streams or those juggling operational needs and investment income. 

Today, we’ll explore the intricacies of using LLCs to structure your family office.  

What is an LLC, and why is it an ideal family office structure? 

An LLC is a unique business entity that merges the advantages of both corporations and partnerships, offering a blend of liability protection and operational flexibility. At its core, an LLC provides liability protection for its members. 

If the LLC faces financial difficulties or legal challenges, only the assets owned by the LLC are at risk, safeguarding personal wealth. 

Another significant feature of an LLC is its flexibility in taxation. Unlike traditional corporations that often face double taxation on profits, LLCs typically benefit from pass-through taxation. This allows profits and losses to be reported directly on the members’ personal tax returns, simplifying tax obligations and potentially lowering overall tax burdens. Members can also choose to be taxed as a corporation if that proves more beneficial for their financial situation. 

LLCs also offer customization in management. Members can decide whether to manage the business themselves or appoint managers to handle operations. This flexibility allows families to tailor governance structures according to their preferences and needs, which can be particularly beneficial in multi-generational settings. 

LLC benefits to family offices  

The advantages of using an LLC as a family office structure extend beyond these core features. For one, LLCs provide asset protection, ensuring family wealth is shielded from creditors. This is especially important for families with significant business interests or investments, as it helps maintain control over their assets while minimizing exposure to risk. 

Additionally, LLCs facilitate simplified governance for families navigating complex dynamics across generations. By establishing clear operating agreements, families can outline decision-making processes and ownership rights, reducing potential conflicts and ensuring smooth operations over time. 

Finally, the ability to manage diverse income streams makes LLCs particularly appealing for family offices. Whether overseeing operational businesses, real estate investments, or financial portfolios, an LLC structure allows families to integrate various income sources into a cohesive management strategy. This adaptability supports long-term wealth preservation and growth. 

Why LLCs for family offices are so tax efficient 

Family offices structured as LLCs can leverage several tax advantages, making them an attractive option for managing and preserving wealth across generations. Let’s explore two key aspects of tax efficiency that LLCs offer to family offices: pass-through taxation and deductible business expenses. 

Pass-through taxation 

One of the most significant tax benefits of using an LLC structure for a family office is pass-through taxation. This feature allows the LLC to avoid double taxation, a common issue faced by traditional corporations.  

Here’s how it works: 

• The LLC itself doesn’t pay federal income tax on its earnings. 
• Instead, profits and losses “pass through” the business to the individual members similar to partnerships. 
• Members report their share of the LLC’s income on their personal tax returns. 
• The income is then taxed at the individual income tax rates. 

This approach can be particularly advantageous for family offices managing diverse investment portfolios. Capital gains, dividends, and other investment income retain their character as they flow through to the members’ tax returns. This means family members can benefit directly from preferential tax rates on long-term capital gains and qualified dividends. 

Several deductible business expenses 

Another key tax efficiency aspect for family offices using an LLC structure is the ability to deduct various business expenses. Section 162 of the U.S. Tax Code provides the framework for these deductions.  

Family offices can deduct ordinary and necessary expenses incurred in carrying on their trade or business. This may include: 

• Salaries for family office staff 
• Office rent and utilities 
• Investment management fees
• Professional services fees (legal, accounting, etc.) 

With an LLC structure, family offices may also be eligible for “trade or business” qualification deductions. To claim them, the family office must qualify as a trade or business under IRS rules. This requires: 

• Regularity and continuity of operations 
• A primary purpose of income or profit 
• Separation between family office ownership and family assets 

It’s crucial for family offices to maintain clear documentation and demonstrate that their activities go beyond mere personal investment management. The landmark Lender Management LLC case provides guidance on structuring family offices to meet these requirements. 

By leveraging these tax efficiency strategies, family offices using LLC structures can potentially reduce their overall tax burden while maintaining the flexibility to manage diverse assets and investments. 

Tax strategies (and considerations) for family offices using LLC legal structures  

By leveraging the unique features of LLCs, family offices can optimize their tax positions while ensuring flexibility in governance and investment decisions. Here’s a closer look at several key strategies particularly applicable to LLCs. 

Leverage multiple classes of interests  

One of the standout features of LLCs is their ability to create multiple classes of interests. This flexibility can be particularly advantageous for family offices, allowing them to tailor ownership structures to meet their unique needs.  

For example: 

• Carried interest for junior family members: LLCs can issue carried interests to junior family members, enabling them to participate in the profits without having to invest significant capital upfront. This incentivizes younger generations to engage actively in managing family wealth. 
• Preferred interests with frozen values for senior family members: Senior family members can hold preferred interests with a predetermined value. This arrangement protects their investments while allowing junior members to benefit from growth in the LLC’s assets. 

Different classes can also have distinct distribution rights and voting powers, allowing families to maintain control while providing flexibility in profit sharing. This structure enhances family members’ engagement and helps manage expectations regarding wealth distribution and governance. 

Take advantage of preferential capital gains tax treatment 

LLCs also enable family offices to benefit from preferential capital gains treatment. With pass-through taxation, investment gains retain their character as they flow through to individual members’ tax returns. This means members can directly benefit from long-term capital gains rates on qualifying investments, which are generally lower than ordinary income tax rates. 

In contrast, C corporations face double taxation where all distributable income is taxed as ordinary income. By operating as an LLC, family offices can avoid this pitfall and optimize their tax liabilities. 

This preferential treatment is particularly beneficial for families focused on long-term investment strategies, as it allows them to maximize after-tax returns on their investments. 

Consider multiple entity structures 

LLCs allow family offices to establish a multiple entity structure, creating separate entities for different asset classes. For instance: 

• An “Alternative Investments Pool LLC” could manage private equity or hedge fund investments. 
• A “Large Cap Equities Pool LLC” might focus on publicly traded stocks. 
• A “Real Estate Investments LLC” could handle real estate holdings. 

This structure enables family members to choose which investments they wish to participate in while centralizing management functions within the family office. It provides diversification opportunities while maintaining streamlined oversight. 

Look into Series LLCs 

Series LLCs allow for the creation of multiple “series” or sub-units within a single LLC structure, each with its own assets, liabilities, and members. This structure can provide tax advantages by potentially allowing each series to be treated as a separate entity for federal tax purposes.  

This flexibility enables different tax elections and accounting methods among the series, which could be beneficial for tax planning strategies. For instance, it may allow for isolating certain activities to avoid specific tax rules or maximize deductions.  

However, it’s important to note that state tax treatment can vary, with some states treating the entire Series LLC as a single entity and others recognizing each series separately. 

Avoid “phantom income” 

Unlike S corporations, which are required to distribute profits equally among shareholders, LLCs have more flexibility in profit distribution. This characteristic allows them to avoid situations where members owe taxes on income they haven’t received—often referred to as “phantom income.” 

By structuring distributions based on actual cash flow rather than equal shares, family offices can better align tax obligations with actual income received by members. This approach helps reduce tax burdens and enhances financial planning effectiveness. 

By focusing on these LLC-specific strategies, family offices can significantly optimize their tax efficiency while maintaining flexibility in management and investment decisions. It’s important for families to consult with tax professionals who understand both current laws and the specific circumstances of their family office to maximize these benefits effectively. 

Why an LLC can be beneficial for family office estate planning  

Estate planning strategies like valuation discounts and annual gifting are particularly well-suited to LLCs, making them an attractive option for family offices. 

Valuation discounts 

LLCs enable families to take advantage of two key valuation discounts: 

• Lack of control discount: Also known as a minority interest discount, this applies to LLC interests that don’t provide meaningful control over business operations. It typically ranges from 10% to 30% of the interest’s value. 
• Lack of marketability discount: This reflects the reduced liquidity of LLC interests, which are not easily sold or transferred outside the family. Discounts can range from 15% to 50%. 

These discounts can significantly reduce the taxable value of LLC interests for gift and estate tax purposes, potentially leading to substantial tax savings. 

Annual gifting strategies 

LLCs provide a convenient structure for implementing annual gifting strategies. For example, LLC interests can be easily divided into units or percentages, facilitating gradual transfers to family members. 

Additionally, families can gift LLC interests up to the annual gift tax exclusion amount ($18,000 per beneficiary in 2026) without incurring gift taxes. 

Combined with valuation discounts, this allows for transferring a greater economic value within the annual exclusion limits. By leveraging these strategies, family offices using LLC structures can potentially transfer significant wealth to the next generation while minimizing gift and estate taxes. 

Top regulatory considerations for LLC-based family offices  

Family offices structured as LLCs must navigate a complex regulatory landscape. Understanding and complying with these regulations is crucial for maintaining legal standing and optimizing tax benefits. 

Understand the Corporate Transparency Act (CTA) 

The Corporate Transparency Act (CTA), effective January 1, 2024, requires beneficial owners of U.S. companies to disclose certain information to the Financial Crimes Enforcement Network (FinCEN). Entities created before 2024 must file their initial report by January 1, 2025, while those created in 2024 must report within 90 days of formation. 

To ensure compliance, family offices should review their organizational structure, gather required information from beneficial owners, and develop a system for timely and accurate reporting. Failure to comply can result in significant fines and penalties. 

Get a trade or business classification 

Structuring the family office as a legitimate trade or business under IRS guidelines is crucial for expense deductibility. The Lender Management LLC case (T.C. Memo. 2017-246) established that family offices can qualify as a trade or business if they engage in activities “far beyond those of an investor.” 

To qualify, family offices should provide services beyond basic investment management, demonstrate regularity and continuity in operations, and maintain clear separation between family office ownership and family assets. This classification allows for the deduction of expenses under Section 162 of the Internal Revenue Code. 

Comply with SEC registration requirements 

Family offices may need to register as a Registered Investment Advisor (RIA) depending on their activities and assets under management. Generally, advisers with at least $100 million in assets under management must register with the SEC, while those with less typically register with state authorities. 

However, the SEC has defined exemptions for certain family offices. A family office is exempt from registration if it provides investment advice only to “family clients,” is wholly owned by family clients and exclusively controlled by family members or entities, and does not hold itself out to the public as an investment adviser. 

By understanding and adhering to these regulatory considerations, LLC-based family offices can operate effectively while minimizing legal and financial risks. It’s crucial to consult with legal and tax professionals to ensure full compliance with these complex regulations. 

Challenges of using an LLC for your family office structure  

While LLCs offer numerous benefits for family offices, they also present challenges that require careful consideration.  

Family conflicts may emerge over management decisions or profit distribution, potentially straining relationships and complicating operations. The initial setup process can also be costly, involving legal fees, state filing fees, and expenses related to transferring assets into the entity. 

One significant drawback is the limited liquidity of LLC interests, which are typically restricted to family members. This can make it difficult for individuals to sell their stake if needed.  

Ongoing compliance requirements, such as annual filings and meticulous record-keeping, can be time-consuming and expensive. The Hellmann case highlighted additional complexities, including potential SEC registration requirements and the need to balance tax benefits with practical operational considerations.  

Families must carefully evaluate these factors, weighing the drawbacks against the advantages when considering an LLC structure. Open discussions about potential challenges and establishing clear governance structures are crucial for mitigating risks and ensuring long-term success. 

Should your family office be an LLC? Let’s find out together 

LLCs have emerged as a powerful tool for structuring family offices, offering a unique blend of tax efficiency, flexibility, and asset protection. Their pass-through taxation structure allows for potential deductions of investment expenses and salaries, which would otherwise not be deductible for individual partners in a partnership structure.  

However, the effectiveness of an LLC structure depends on careful planning and meticulous compliance with regulations. As you consider your family’s strategy, explore whether an LLC structure aligns with your long-term goals. This decision should factor in your family’s unique dynamics, investment objectives, and legacy planning aspirations.  

“BPM has helped many families decide on the right structure when forming a family office.  We then take it a step further by providing a suite of services from tax planning to staffing to outsourced accounting providing further oversight. “ – Kris Marney, Director – Advisory 

By thoughtfully structuring your family office, you can create a robust foundation for preserving and growing your family’s wealth for generations to come. Schedule a call with the BPM Family Office Team to create a family office structure that works for your family.  

The biotech industry faces a shifting landscape of regulations and policies that are transforming how companies operate. From international trade barriers to complex tax changes, understanding the key effects and possible mitigation approaches is critical for business planning and sustainability.  Let’s examine how recent legislative shifts affect biotech organizations of all sizes and what strategies might help navigate these changes. 

New tariffs reshaping global supply chains 

The introduction of significant tariffs on imports from Canada and Mexico (25% each) and China (10%) is creating ripple effects throughout biotech supply chains. It’s worth noting that tariffs on Canadian and Mexican goods were postponed until March 4, 2025. While these changes affect all biotech companies, smaller organizations with limited cash reserves are particularly vulnerable despite potentially dealing with lower volumes. 

These tariffs create a dual challenge for biotech firms: 

• First, many biotech companies depend on materials and components from these countries—especially China, which has traditionally offered cost-effective pharmaceutical production supplies. 
• Second, reciprocal tariffs imposed by these nations will hamper U.S. companies’ ability to export products, even for those who source materials domestically. This creates a complex situation where both imports and exports are affected. 

Larger and more established biotech firms have been taking proactive measures by diversifying suppliers and revising contractual arrangements. Some have already shifted away from Chinese contract manufacturing organizations (CMOs) and updated their insurance provisions. However, smaller and emerging biotech companies typically lack the resources for such preemptive actions, leaving them more exposed to these trade pressures. Industry analysts anticipate these changes will contribute to broader price increases across biotech and pharmaceutical products. 

The effects go beyond direct production costs. Companies now need to consider restructuring their global operations, reassessing strategic partnerships, and potentially relocating certain activities to reduce tariff exposure. This reorganization demands significant investment in new supply chain infrastructure and relationship development with alternative suppliers—adding financial pressure to an industry already characterized by substantial development costs. 

Evolving corporate tax environment 

The corporate tax landscape is undergoing notable changes under the current administration. While there are proposals to lower corporate tax rates, particularly for companies that manufacture within the United States, these potential benefits come with increased compliance complexity and reporting requirements. The administration has signaled preferences for domestic manufacturing, potentially offering more advantageous deductions and accelerated depreciation calculations. 

Tax professionals have observed that international tax compliance has become considerably more complex recently, with forms such as Form 5471 growing substantially in scope and intricacy. This expanded reporting obligation has resulted in higher compliance costs and more complicated tax provision work for biotech organizations. 

Furthermore, the administration has proposed additional penalties—sometimes labeled as “tariffs” but functioning as penalty taxes—on U.S. companies that offshore certain operations. This could specifically affect biotech companies conducting R&D overseas to leverage foreign tax credits or cost efficiencies, with potential additional taxes of 5-10 percent beyond the standard corporate rate. These penalties specifically target companies conducting activities outside the U.S., creating additional considerations for biotech firms with global operations. 

Section 174 and the capitalization of R&D expenses 

Perhaps the most substantial tax change affecting the biotech sector is the Section 174 requirement to capitalize R&D expenses, which took effect in 2022. Despite widespread anticipation of legislative adjustments and bipartisan support for changes, the requirement remains active, with potential modifications not expected until 2026. This provision has created particular difficulties for research-intensive organizations in the biotech field. 

Under these rules, companies must capitalize and amortize R&D expenses over five years for domestic spending and fifteen years for foreign spending, rather than deducting them immediately. This creates an especially challenging situation for biotech startups, where R&D typically constitutes the majority of operating expenses. The impact is particularly severe for pre-revenue companies that rely on federal grants for R&D funding, as they may face tax liabilities without revenue streams to cover them. 

The effects have been substantial: companies showing losses on their financial statements may still face tax obligations due to the timing difference between financial and tax accounting for R&D expenses. This situation becomes especially pronounced when companies receive collaboration deals, as revenue recognition for tax purposes typically occurs earlier than for financial reporting. Many startup companies have been surprised to find themselves in taxable positions despite considering themselves pre-revenue organizations. 

Recent discussions suggest that potential future adjustments might only address domestic R&D spending, leaving the 15-year amortization requirement in place for foreign R&D activities. This would continue to affect many startups that rely on offshore third parties for clinical trials and other research activities. 

Strategic Considerations for Biotech Companies 

1. Supply chain restructuring: Companies should evaluate their supply networks and consider diversifying sources to mitigate tariff impacts, weighing the costs and benefits of domestic versus international suppliers. This includes assessing alternative providers, considering geographical diversification, and potentially restructuring existing supplier relationships to optimize costs and minimize tariff exposure. 

2. Proactive tax planning: Early involvement of tax advisors in collaboration agreements and business development deals can help structure revenue recognition more favorably for tax purposes. Companies should focus particularly on documentation and analysis to ensure accurate Section 174 calculations and avoid overstating capitalized amounts. 

3. R&D location strategy: Organizations should carefully evaluate the location and structure of their R&D activities, considering the differential treatment of domestic versus foreign research expenses. This may involve reassessing the balance between internal and external research activities and the geographical distribution of research operations. 

4. Enhanced compliance preparation: Companies need to prepare for increased complexity in tax reporting and potentially higher compliance costs. This includes developing robust systems for tracking and documenting R&D expenses, maintaining detailed records of international transactions, and ensuring adequate resources for enhanced reporting requirements. 

5. Integrated strategic planning: Organizations should consider these tax and tariff implications early in their business planning processes, particularly when structuring collaborative agreements, planning research activities, or expanding operations internationally. 

While tax considerations shouldn’t drive business decisions, they have become increasingly important factors in strategic planning. Companies that address these challenges proactively while maintaining focus on their core mission of innovation and development will be better positioned to thrive in this evolving regulatory landscape. 

How BPM can support your Biotech organization 

At BPM, we understand the unique challenges biotech companies face in navigating today’s complex regulatory and tax landscape. With experience supporting organizations across the life sciences sector, from early-stage startups to established pharmaceutical firms, we provide guidance that helps manage compliance requirements while pursuing innovation goals. 

Contact BPM today to discuss how we can support your organization’s strategic objectives. 

Technology companies are driving innovation across every sector of the modern economy, making substantial investments in research and development along the way. Many of these companies don’t realize they could recoup significant portions of their R&D spending through available tax credits.  

This article will explore how tech companies can leverage R&D tax credits, qualification criteria and the types of activities and expenses that qualify for these valuable incentives. 

Understanding R&D tax credits 

R&D tax credits provide dollar-for-dollar tax savings that directly reduce a company’s income tax liability. These credits hold particular value for startup tech companies because under certain circumstances they can offset payroll taxes.  

The qualification process follows a four-part test that evaluates: 

• The technical nature of the work performed 
• The permitted purpose of the research activities 
• The presence of technological uncertainty 
• A documented process of experimentation 

Qualifying activities in the tech sector 

Tech companies regularly engage in activities that qualify for R&D credits. Software development, artificial intelligence programming and platform engineering projects often meet the criteria. Companies can claim credits for: 

• Designing and testing new prototypes 
• Developing new software applications 
• Creating specialized technologies 
• Improving existing components 
• Engineering new manufacturing processes 

Hardware development and integration projects also frequently qualify, including: 

• Testing alternative materials for product enhancement 
• Improving manufacturing efficiency through automation
• Developing new hardware configurations 
• Creating innovative IoT solutions 
• Integrating emerging technologies with existing systems 

Calculating qualified expenses 

The amount companies can save through R&D credits typically ranges from 5 percent to 15 percent of qualifying expenses. These expenses include: 

• Employee wages: Compensation for staff directly conducting research, supervising research activities or providing direct support 
• Supply costs: Materials used in R&D processes 
• Contract research: Payments to third-party companies performing specialized development work 
• Computer rental: Payments made to cloud computing vendors for research activities.  

While calculating these expenses requires careful documentation, companies may include expenses related to failed projects or abandoned research paths. The IRS does not automatically recognize that uncertainty and experimentation are inherent parts of the R&D process.  

Special considerations for startups 

Pre-revenue tech companies can benefit significantly from R&D credits through the payroll tax election. Companies with less than $5 million in gross receipts can apply up to $500,000 of their R&D credit against payroll taxes, providing valuable cash flow during crucial growth phases. 

Documentation requirements for claiming R&D tax credits 
Starting in 2024, companies must provide more detailed information on Form 6765. This includes: 

• Disclosing the total number of business components (projects) 
• Separately listing the amount of officers’ wages  
• Business acquisitions/dispositions 
• Identifying new cost categories that were not previously claimed 

Changes on the horizon 

The R&D credit landscape continues to evolve, with new legislation under consideration at both federal and state levels. Companies must stay informed about these changes to maximize their benefits. 

Working with BPM  

Navigating R&D tax credits requires careful planning and thorough documentation. BPM combines deep technology sector knowledge with tax credit optimization experience to help companies identify qualifying activities, document expenses properly and maximize their R&D credit benefits. Our team works closely with tech companies of all sizes to develop comprehensive R&D credit strategies that align with their growth objectives while ensuring compliance with current regulations. 

To learn how we can help your technology company leverage R&D tax credits effectively while maintaining compliance with evolving requirements, contact us.