In this chapter, they discuss the difference between building software and conducting research and development (R&D) for an app. They explain the four-part test to determine if the engineering work qualifies as research, which includes being in the hard sciences, being new and novel, involving a process of experimentation, and having a technological nature. They also mention that certain activities like QA and marketing spend do not qualify as engineering. Furthermore, they mention that to qualify for the US R&D tax credit, the engineers must be on a US payroll or contractors based in the US.
Today’s show:
Kruze’s Scott Orn joins Jason to discuss navigating potential ERC fraud (00:45), expected year one spend for startups (11:54), importance of accounting from Day 1 (15:22), and more!
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Time stamps:
(0:00) Kruze’s Scott Orn joins Jason.
(0:45) Navigating Employee Retention Credit (ERC) and spotting fraud, and the importance of CPA expertise
(9:01) The difference between building software and R&D
(11:54) Expected year one spend for startups
(15:22) Importance of accounting from day 1
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Check out Kruze: https://kruzeconsulting.com
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Follow Scott:
https://twitter.com/scottorn
https://www.linkedin.com/in/scottorn
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Great 2023 interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland
Check out Jason’s suite of newsletters: https://substack.com/@calacanis
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Follow Jason:
Twitter: https://twitter.com/jason
Instagram: https://www.instagram.com/jason
LinkedIn: https://www.linkedin.com/in/jasoncalacanis
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Follow TWiST:
Substack: https://twistartups.substack.com
Twitter: https://twitter.com/TWiStartups
YouTube: https://www.youtube.com/thisweekin
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Subscribe to the Founder University Podcast: https://www.founder.university/podcast