The tech ecosystem is propelling forward at an incredible pace. It’s crazy to think that Spotify only started life in 2006, and Uber three years later in 2009. Now, these global giants have pulled in millions of users and are a household name, transforming the way we do things.
In the United Kingdom, we have many exciting tech startups that are developing world-changing products that really do make a difference. It’s not, however, an easy ride. Tech startups are always facing a vast array of challenges that often pull in opposite directions.
The challenge of attracting and retaining the very best talent always comes up in conversation. With established competitors seemly always able to offer more money, it’s become more about the culture of the company and how much impact the individual can have that makes the difference.
Cash flow is also a major issue for tech startups. Trying to find investors who are willing to take the risk of parting with their cash is always a hard task, and trying to keep a company afloat when the cash balances run low can seem like an impossible task. Even those lucky enough to have raised large levels of investment need to manage their burn rate to ensure the money is used for the purposes intended.
The Government acknowledges that the UK has a thriving tech ecosystem and have a range of schemes in place to further cultivate the industry – from R&D claims and tax relief for early-stage investors to schemes in place to help retain employees, there are always tax benefits to be aware of.
How can we help?
UHY’s technology professionals understand this changing and challenging environment. We combine industry knowledge with technical experience to provide insights that help technology leaders deal with their complex business models. Our professionals go beyond today’s challenges to anticipate the potential long and short-term consequences of shifting business, financial and technology strategies. We also help clients explore potential obstacles to change and collaborate on critical decisions that can deliver real value to their businesses.
Our tech sector expertise
|R&D tax claims||We find that the majority of tech companies qualify for at least some relief from this scheme. Our efficient and straight forward process will help you get a reduced corporation tax bill or cash rebate when you spend on R&D activities.|
|SEIS/EIS||Some investors will only invest if they get either SEIS or EIS relief. The generous tax relief given to investors that put money into SEIS/EIS qualifying companies can help your company look even more attractive to potential investors.|
Fundraising can be a minefield for any company. We’ll take the time to understand your needs and suggest the best course of action, supporting you along the way. Tech startups are often funded by equity investment, but there are many other options available!
|Employee incentive schemes||Retaining the best talent is always difficult, especially if you’re tight on cash. We can advise on the most common incentive schemes to help retain employees, such as share options and employee benefits.|
|Audit / assurance services||Having a review of your financial statements considerably increases the credibility of both the numbers and your company – excellent for attracting new investors. We’ll help you decide on the right level of assurance and carry out the review.|
|Systems & processes review||We find that startups tend to use a wide range of software during their early days, sometimes even paying saas subscriptions for duplicate software. We can help you become more efficient and reduce the need for unnecessary subscriptions.|
|Cash flow management||Knowing exactly where the dry patches are and when you might run out of cash completely is vital to success. Your burn rate and runway are key metrics in tracking cash flow and we have a range of tools at our fingertips to help you intelligently measure and manage this.|
|Exit planning||Exit is a key event in almost every tech company. IPO? M&A? Acquihire? They’re all potential options that need some planning. We’ll discuss the options with you and help prepare the company for eventual exit, ensuring the plans are flexible in case things change.|
|Compliance||This can be a headache for even the most established company out there, but our years of experience means we’ll help keep you on the right side of the law, including timely preparation and submission of annual accounts, tax returns and companies house filings.|
|Outsourced finance department||using an outsourced finance department means you get a full finance team without the HR headaches. We use cloud based software to keep your bookkeeping up to date and run your payroll with ease. But don’t worry – when it’s time to take it back in house, we’ll help you effortlessly transfer the data and be on hand for any questions and support.|
|Management information||Regular management information helps the founders, board and/or investors know how the company is operating. We look beyond the standard financial reports and look to include other metrics (such as LTV and churn rates) to give a broader picture of how the company is performing.|
|Global expansion||With our UHY network spreading across the globe, we’ve got experts who can help you expand into just about any country you’re aiming for. As they’re part of the UHY group, you’ll get the level of excellent service and responsiveness that you expect.|
|Tax consultancy||As tech companies expand, we often find they come face to face with unique tax situations, especially as they tend to not be limited geographically. We’ve got a huge number of tax experts within our network who can help resolve just about any problem you face.|