Why Accounting for Cleantech Startups is Far From Straightforward
Cleantech companies focus on developing and implementing technologies and solutions to reduce environmental impact and promote sustainability. They are dedicated to addressing pressing global challenges such as climate change, resource depletion, and pollution.
CleanTech companies offer a wide range of innovative products and services, including renewable energy technologies, energy-efficient appliances, waste reduction solutions, and eco-friendly transportation options. They play a crucial role in helping society transition to more sustainable and environmentally friendly practices.
Precision Accounting Tailored for CleanTech
Given the dynamic nature of the cleantech sector, which is marked by its focus on renewable energy, sustainable practices, and innovative technologies, there are a significant amount of factors to be mindful of. Our cleantech accounting experts have highlighted several key points that all founders and managers in this field should be aware of:
Emission Reduction Credits
CleanTech companies may generate emission reduction credits through their activities, which can be traded or sold. Accounting for these credits, including their valuation and recognition, is important.
Environmental Liabilities
CleanTech companies may be responsible for environmental remediation and cleanup efforts. Properly accounting for potential liabilities and estimating the costs associated with environmental obligations is essential.
Government Incentives and Grants
Many CleanTech companies receive government incentives, tax credits, and grants to support their sustainability efforts. Properly accounting for these incentives and grants and ensuring compliance with reporting requirements is crucial. These grants may be in the form of SBIR Grants (Phase I or II) and from different Federal Agencies, such as the National Science Foundation, National Institutes of Health, and Department of Defense (DOD), as well as State Agencies, such as the California Energy Commission (CEC).
CleanTech Startups need to consider:
Discovering the Right Accounting Solutions for Your Cleantech Startup
Accounting for Cleantech startups demands meticulous attention to the distinct elements involved, such as revenue recognition, research and development expenses, intellectual property, and taxation. Having precise and prompt accounting data is crucial for making informed business decisions and efficiently managing your finances.
Introducing our team at ShayCPA: we are dedicated to offering accounting services tailored for startups in the Cleantech sector. Our team of accounting experts is well-versed in the intricacies of Cleantech startups and the implications for your financial records. To explore how we can assist you in overcoming the financial challenges of your Cleantech startup, please contact us.
Case Study
EnerKnol Inc.
Founded in 2014 by Angelique Mercurio, EnerKnol is an innovative energy policy data and analytics company based in NYC. It provides real-time access to regulatory information crucial for energy industry decision-making. Their core product, EnerKnol Data, offers comprehensive policy insights through a single subscription-based website, empowering market participants to navigate today’s energy landscape with confidence.
Initially founded by energy policy analysts, EnerKnol transitioned to focus on software development driven by policy expertise. The team has published over 800 EnerKnol Research briefs, offering deeper insights into regulatory impacts on energy markets.
We’ve assisted EnerKnol Inc. with:
- Manage all Federal and State tax compliance
- Preparation of Internal Financial Statements
- Monthly Bookkeeping & Payroll Processing
- Recording of Revenue
- Quarterly Financials
“Shay CPA is the very best accounting firm I’ve had the pleasure to work with. Akshay is on top of what’s important, and he’s also very tech savvy, which makes working with him seamless and efficient!”
Monthly Accounting Pricing
Quarterly
Starting at
- Reconcile Quickbooks Online (10 hours per Quarter)
- Cash-Based Bookkeeping
- Quarterly Video Review
- Chart of Accounts Template Provided
- Annual Meeting
Pre-Seed
Starting at
- Reconcile Quickbooks Online
Accrual Based Bookkeeping - Monthly Call
- Chart of Accounts Template Provide
A/P A/R Tracking By Client
Monthly
Starting at
- Reconcile Quickbooks Online
- Accrual Based Bookkeeping
- Monthly Call
- Customized Chart of Accounts
- Deferred Revenue Recognition
- A/P, A/R Tracking
- Inventory/COGS Reconciliation
- Financial Metrics
- Sales Tax Filings *
- Monthly Financials delivered by the 15th after month end
*up to one state included in sales tax
Series A & Beyond
Based On Your Needs
Custom Quote
(discount if billed annually)
- Reconcile Quickbooks Online
- Accrual Based Bookkeeping
- Monthly Calls and ongoing communication
- Customized Chart of Accounts
- Deferred Revenue Recognition
- A/P, A/R Tracking
- Inventory/COGS Reconciliation
- Board Financials and Metrics
- Sales Tax Filings
- Monthly Financials delivered based date requested
Additional Tax Services
State and local taxes (SALT)
Beyond the corporate taxes to which your company is subject, we also provide services for any state and local taxes that apply to your startup. For example, we work with many tech companies incorporated in Delaware and support them with their Delaware Annual Filings.
Cross-border taxes
If you work with international investors or you plan to expand abroad, our cross-border tax expertise can help you comply with the complex applicable tax regulations. We have experience working with companies that have connections in Lebanon, Canada, the UK, South America, and various EU nations.
Our Process
1
Step 1: Contact Us
Get in touch and we’ll reach out to you to schedule a video call to better understand your tech startups needs and prepare a custom quote.
2
Step 2: Onboarding
We’ll invite you to our secure client portal where you can use our easy to use onboarding checklist to get started. See general pricing guide here.
3
Step 3: Review
We schedule ongoing video calls with you to review your financials and ensure all of your tax compliance is taken care off.
If you’re ready to explore our tax services for tech startup C corporations, don’t hesitate to contact our team today.