R&D Tax Credits Explained: How Entrepreneurs Turn Problem-Solving Into Tax Savings

In this episode of The CPA Revolution, Sharina Padilla and CPA Jose Ortiz dive into a topic many business owners misunderstand: the R&D tax credit. This incentive isn’t just for tech companies or groundbreaking inventions, it’s designed to reward entrepreneurs and problem solvers who are actively improving processes, products, and operations.

One of the key themes in this conversation is preparation. Jose emphasizes that no tax strategy works unless your books are in good order. Just like going to the gym consistently keeps your body healthy, maintaining clean and accurate financial records is a non-negotiable part of running a successful business.

The discussion also highlights a common mistake business owners make: relying on surface-level advice from the internet without understanding how incentives really work. R&D credits, grants, and bonus strategies can be powerful, but only when they’re implemented correctly and supported by proper documentation and planning.

The big takeaway? Tax incentives are not loopholes, they’re tools. When you understand the rules of the game and work with the right advisors, you can use programs like the R&D tax credit to fuel growth, reinvest in your business, and build long-term wealth instead of reacting at the last minute.

If this episode resonated with you, it might be time to look beyond filing and start planning.