R&D Tax Incentive: Advisory Opportunity for Your Firm
Accountants Minute 427
Clearing Up the Myths
Too many accountants still believe they need to be engineers or scientists to advise on the Research and Development (R&D) Tax Incentive.
This is a myth.
At ESS BIZTOOLS, we know the accountant’s role is not to run experiments or manage technical results. That’s the responsibility of your client’s leadership team.
Your role is much more powerful – to act as an “internal auditor”, ensuring your clients’ documentation and compliance are accurate so they can successfully claim the incentive.
And let’s clear up another myth: SMEs aren’t interested in R&D.
The evidence proves otherwise.
The Facts: SMEs Are Driving R&D in Australia
The ATO’s R&D Tax Incentive Transparency Report 2022/23 (released September 2025) shows:
✅ 6,016 small business companies (turnover < $10M) participated – 46% of all claimants
✅ 4,507 privately owned companies (turnover > $10M, non-listed, non-foreign) participated – 35% of all claimants
Average R&D expenditure:
✅ SMEs: $403,232
✅ Privately owned groups: $1.11M
Top 5 SME Industries for R&D Investment
1️ Professional, Scientific & Technical Services – $1,238M across 2,820 firms
2️ Manufacturing – $402M across 1,136 firms
3️ Information, Media & Telecommunications – $122M across 340 firms
4️ Wholesale Trade – $83M across 273 firms
5️ Retail Trade – $82M across 247 firms
Why This Matters for Your Firm
Advising on R&D is not about science. It’s about:
✅ Guiding clients through eligibility – companies with >$20k eligible R&D spend and turnover under $20m can claim a rebate, and if trading at a loss, they may receive a cash refund.
✅ Helping with documentation – ensuring records meet AusIndustry and ATO requirements.
✅ Positioning yourself as the trusted advisor – SMEs lack in-house knowledge of the process and rely on accountants to guide them.
This is not just compliance. It’s a chance to build long-term advisory relationships while helping clients unlock cash flow benefits.
ESS BIZTOOLS R&D Product Package
We’ve built a complete toolkit so your firm can confidently advise SMEs on R&D opportunities.
What’s Inside:
✅ Procedure Control Form – to guide you from first enquiry to claim
✅ 12 Flowcharts – simple visuals for explaining processes to clients and team members
✅ 46 Pre-Prepared Forms – covering every documentation requirement
✅ Information Papers on:
✅ Eligibility
✅ R&D planning and project preparation
✅ IP protection
✅ Financial recording and checklists
✅ Industry-specific R&D issues
✅ Clawback and feedstock adjustments
This package positions your firm to act as the internal auditor, ensuring clients are ready to claim rebates and refunds.
Beyond R&D: The Innovation Journey
Once SMEs start their innovation journey, they will need further support – and your firm can provide it:
✅ Business Plans for strategy and capital raising
✅ Predictive Accounting Reports (budgets, key drivers, cash flow forecasts, projections)
✅ 52-Week Business Advisory Systems for ongoing guidance
✅ Capital Raising Documentation (Crowd Sourced Funding, Early-Stage Innovation, Section 708 Corporations Act)
✅ Board of Advice/Directors Reporting
By helping SMEs with R&D, you open the door to becoming their long-term strategic partner.
EXPLORE R&D INTRODUCTION PACKAGE HERE
Join the Webinar
Join us on Wednesday 15 October at 11am AEST, as we cut through the complexity of R&D Tax Incentive and show you how to help SMEs access this game-changing incentive. You’ll learn:
✅ What activities qualify for the R&D Tax Incentive
✅ The financial benefits available (cash refunds and tax offsets)
✅ Common misconceptions that stop businesses from claiming
✅ How advisors can position themselves as trusted partners in driving innovation
Take Action
Now is the time for accountants and bookkeepers to step up. R&D advice is not just about compliance – it’s about driving growth, unlocking rebates, and positioning your firm as the trusted advisor.
EXPLORE R&D COMPLETE PACKAGE HERE
Visit our website – www.essbiztools.com.au – to discover the detailed overview of the services provided by ESS BIZTOOLS. You are also welcome to contact us on 0418 190 181 or email .
Free Webinar by ESS BIZTOOLS
R&D Tax Incentives Explained: A Game-Changer for SMEs
📅 Wednesday 15 October 2025 | 11am AEST
Characteristics of a Well-Run Business: Building Successful SMEs
📅 Wednesday 22 October 2025 | 11am AEST
ESS BIZTOOLS Podcast
Only 15% of SMEs see their accountant as a true strategic partner.
In this episode of Accountants Minute Podcast, Peter Towers unpacks why – spotlighting MYOB’s findings on poor debtor practices (no credit vetting, weak follow-up, rising DSO) – and outlines how firms can flip the script. Learn practical, billable ways to implement robust debtor systems, set clear terms, use pre-due reminders, and track Debtors Days Outstanding monthly. Equip your team to lift cash flow for clients – and your positioning as their essential advisor.
CLICK HERE TO LISTEN TO OUR PODCAST
Listen to more Accountants Minute Podcast episodes here
Want to know more?
Visit www.essbiztools.com.au.
If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 0418 190 181 and we will arrange a complimentary 45-minute Zoom meeting to discuss your firm’s position and to give you our advice.
We believe that this is the blueprint for the delivery of an enhanced range of services by Australian Accounting and Bookkeeping firms to assist SME businesses to add value to their businesses and to assist accountants and bookkeepers not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.
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