CleanTech plays a crucial role in transitioning the world into a more environmentally friendly and low-carbon economy which offers benefits for both the planet’s and our own well-being. To advance their goal of a cleaner, healthier planet and more responsible lifestyle, these CleanTech companies need trusted accountants and advisors like Withum to ease the burden of running a business by helping navigate potential risks and providing guidance on grant income, revenue recognition, inventory management and more. With this assistance, CleanTech companies can focus on taking steps to create a more sustainable world.
CleanTech refers to a broad range of technological products, services, and processes that create a positive impact on the environment and promote sustainability. CleanTech companies range in space from ClimateTech, agriculture, energy, transportation, water and manufacturing, offering products using more earth friendly materials to innovative technologies that increase energy efficiency or reduce carbon emissions, and much more in between.
Who We Help
- CleanTech Consumer Products
- Advanced Materials
- Agriculture and Food
- Wind Energy
- Energy Efficiency and Storage
- Solar Energy
- Recycling & Waste
- Biofuels and Biochemicals
Tech Bytes: CleanTech
CleanTech Challenges and Trends
Risk management is crucial for CleanTech companies as they operate in a rapidly changing and evolving environment. A comprehensive risk management plan should be developed, which includes identifying and prioritizing risks, implementing measures to mitigate them, and regularly reviewing and updating the plan.
In today’s digital age, cybersecurity and data protection are imperative for all companies, especially tech companies. With cyber threats at an all-time high, businesses must implement robust security measures and protocols to protect sensitive data from cyber threats and ensure compliance with relevant laws and regulations.
CleanTech companies must adhere to regulatory and compliance rules and standards to ensure they are operating within legal and ethical boundaries, such as data privacy regulations, cybersecurity standards, and intellectual property laws. Let our professionals help your company navigate these regulations and maintain compliance.
Environmental, Social and Governance (ESG) is becoming increasingly important to investors, customers, and other stakeholders when evaluating a company’s overall success and sustainability, making it a critical component of a tech company’s business. At Withum, we can help your organization implement meaningful ESG and Corporate Social Responsibility (CSR) best practices.
Navigating tax laws can be complex and requires a deep understanding of the various tax regulations and their implications. It is essential to have a robust tax strategy in place, including identifying tax risks and opportunities, ensuring compliance with relevant tax laws, and optimizing tax structures to minimize tax liabilities. Our comprehensive understanding of tax regulations allow us to help you develop economical tax strategies and ensure your company is compliant.
CleanTech companies must follow the revenue recognition standards outlined in ASC 606, which requires companies to recognize revenue when goods or services are transferred to customers at an amount that reflects the consideration the company expects to receive. Non-compliance with revenue recognition standards can result in financial reporting inaccuracies and regulatory scrutiny. Withum can help ensure your company is properly recognizing revenue and maintaining investor confidence.
CleanTech industries require intensive research and development (R&D) to produce innovations and technologies that will reverse climate change or increase sustainability. This necessary research and development can lead to R&D Credits which, if eligible, can allow companies to offset a portion of their R&D expenses against their tax liabilities.
CleanTech Accounting, Advisory and Tax Services
Accounting and Attestation
- Audited Financial Statements
- Tax provision preparation support
- ASC 606 implementation consultations
- Inventory management consultation
- Navigating the cap table (i.e. Carta) and stock-based compensation reporting (ASC 718)
- Complex debt and equity accounting (warrants, SAFE notes, Secondaries, etc.)
ClimateTech, one of CleanTech’s largest sub-sectors, is at the forefront of the climate change crisis, using technology to mitigate greenhouse gas emissions as well as reverse and adapt the effects of this rapid shift in the climate. It plays a critical role in combating climate change, supporting the transition to a low-carbon economy, and creating a sustainable future for generations to come. At Withum, we focus on a host of ClimateTech categories including:
- Carbon Technology
- Food and Agriculture
- Transportation and Mobility
CleanTech Industry Involvement
For more information or to discuss your business needs, contact Withum’s CleanTech Services Team.
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