Why Accounting for Life Science Companies Demands Specialized Attention
Life Science companies encompass a broad spectrum of organizations dedicated to advancing medical research, developing pharmaceuticals, and delivering cutting-edge healthcare solutions.
These ventures are committed to addressing critical global health issues such as disease prevention, treatment, and diagnosis.
Life Science entities offer diverse products and services, ranging from pharmaceuticals and biotechnology products to medical devices and diagnostic tools. They play a pivotal role in revolutionizing healthcare delivery and driving medical innovation.
Precision Accounting Tailored for Life Science Enterprises
Given the multifaceted nature of the Life Science sector, characterized by intensive research, regulatory scrutiny, and innovative breakthroughs, there are several crucial accounting considerations that founders and managers must bear in mind:
Clinical Trials and Regulatory Compliance
Life Science ventures conduct extensive clinical trials and must navigate stringent regulatory frameworks imposed by agencies such as the FDA and the European Medicines Agency (EMA). Ensuring compliance with regulatory reporting requirements is imperative for financial transparency and regulatory adherence.
Government Grants and Incentives
Many Life Science companies receive government grants, tax credits, and incentives to support their research and development efforts. Properly accounting for these funds and adhering to reporting requirements is critical, including grants from institutions such as the National Institutes of Health (NIH) and the Food and Drug Administration (FDA).
Intellectual Property (IP) Rights
Intellectual property, including patents and proprietary technologies, forms a cornerstone of many Life Science companies. Properly valuing and accounting for IP assets is crucial for accurate financial reporting and strategic decision-making.
Life Science Startups need to consider:
Discovering Tailored Accounting Solutions for Your Life Science Venture
Accounting for Life Science startups necessitates a meticulous approach to address the unique intricacies involved, including revenue recognition complexities, regulatory compliance challenges, and intellectual property valuation. Accurate and timely accounting information is indispensable for informed decision-making and effective financial management.
At ShayCPA, we specialize in providing accounting services tailored to startups in the Life Science sector. Our team of accounting professionals possesses comprehensive knowledge of the nuances within Life Science ventures and the implications for financial reporting. To explore how we can assist you in navigating the financial complexities of your Life Science startup, please reach out to us.
Case Study
Reference Medicine Inc.
Founded in 2020 by Justin Lock and Inga Rose, Reference Medicine Inc. is a pioneering biotechnology company dedicated to addressing the critical need for human samples in medical research and development. Leveraging existing infrastructures and strategic partnerships, Reference Medicine streamlines the procurement, processing, and supply of human samples for R&D purposes.
With a growing portfolio of customers in the biotech and pharma sectors, Reference Medicine is poised to revolutionize the field of medical research and development. By providing access to high-quality human samples and ensuring a seamless experience for researchers and developers, Reference Medicine is shaping the future of healthcare innovation.
We’ve assisted Reference Medicine Inc. with:
-
- Manage monthly Financial Reporting and Bookkeeping
- Manage all Federal and State tax compliance
- Yearly Tax Planning
- State Apportionment Assistance
- Put cash back into the Company by helping Reference Medicine Inc. qualify for valuable Research & Development Tax Credits.
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.