The 2021 SaaS (service as a software) industry is worth an incredible $145 billion, with a projected user spending of $179 billion in 2022. Since Salesforce launched in 1999, the service as a software industry has been constantly evolving, improving, and progressing to increase production, save time, and simplify tasks. With more individuals than ever utilizing the internet for everyday tasks, the amount of independent SaaS developers and small businesses is also exponentially increasing. The result is a SaaS platform for everything, and that shouldn’t go unnoticed.
With heightened risk and climbing development costs, companies are urged to explore any additional cash flow, especially small to medium-sized businesses. For these companies, the R&D tax credit can be the difference between launching or closing. QREs (qualified research expenses) encompass the highest expenses in SaaS development, so if your company is already spending the money, you are entitled to benefit from this program. Developing a service as a software entails technical and financial risk, which the R&D tax credit can help relieve.
This is where the R&D tax credit really shines. SaaS is rife with technical and financial risk, which means that the work being done qualifies for the credit
The R&D activity at this video subscription service began with defining requirements for an enhanced product. Several internal meetings helped the company to specify the exact new and improved technologies they would incorporate into their 2.0 video subscription product offering. The team consisted of both employees and contractors for engineering and development.
In the first few weeks of the project, they put together a list of specific methodologies and algorithms that would be incorporated into the new video subscription product. Once a list was finalized of the steps they needed to take, they developed improved messaging technologies for communicating with customers, created specific testing environments, and began implementing the new algorithms.
The team rolled out several tests of the video subscription program to evaluate it. Upon further inspection, they designed and developed new, elaborate compliance systems, as well as refined various elements of the customer interface. They also tested the video subscription product for performance and acoustics. The result was a thoroughly updated product with a more user-friendly interface.