Q1 2025 product update

We’ve shipped a series of improvements in the last couple months to help you save time and be confident in compliance.

Summary:

• R&D: Updated 6765 Form

• ASC 350-40 Export:

  • Show by project % math to your auditor
  • Capitalized $ Broken Out By SBC and Salary

• ASC 350-40: Recommended Capitalization Milestones (Alpha)

• Faster Monthly Resync + Other Performance Improvements

R&D Credit

New Form 6765

The IRS changed the form for the R&D credit for 2024 and we’ve got you covered. 😮‍💨

NeoTax now generates the complete and updated Form 6765 with all the new form fields (Officer Wages, # of Business Components, etc).

• Enhanced Project Descriptions to better emphasize key project elements
• Added Workday API integration support

ASC 350-40 Software Capitalization

Allocations By Month, By Project in the ASC Export

You can now easily walk your auditor step by step through the complete math behind the allocation.

This is available as a new sheet “Effort by Project by Person” in the ASC Export.

More here on the allocation math.

Easier Journal Entries: Capitalized $ broken out by Salary vs SBC

You can now see the Capitalized Cost broken out at the project level between Salary and Stock Based Compensation, so you can easily create separate journal entries for each account.

We’ve also added this to the Employee level, along with additional fields like title, department so you can pivot and analyze by any dimension.

Automated Capitalization Milestones (Alpha)

We are gradually rolling out recommended Capitalization Start and End Dates, one of the most requested features for ASC.

This will give you an automated starting point and consistent process, while still giving you control to adjust based on other context as needed.

The recommendation is based on signals in the tickets that indicate the start of development and the release to general availability. Read more here.

Platform:

Major improvements in the speed and reliability of syncing project management data

This has been a big challenge for larger customers and these improvements should bring the time down to ~3 days or less after the period, enabling you to close the books faster.

We’ll improve this further here over the next few weeks.

More accurate identification of effort for in-progress tickets

We’ve improved our ability to identify effort for tickets that are in progress but not yet completed.

The ASC and R&D exports will now show some tickets without completed dates, when the system identifies in-progress effort in the period.

This effort is based on the change logs of those tickets, weighted by the task details, and normalized for period length and other factors.

This will only change the distribution of effort between completed tickets and in progress, but will not in change the aggregate amount of effort in a period, because of the normalization step.