Many traditional R&D credit providers still rely on spreadsheets as the foundation of their analysis. That reliance increases cost, introduces risk, and weakens the defensibility of the credit.

Spreadsheets are fragile. Studies consistently show that most contain errors, yet they are still used to ingest data, perform calculations, and manage multi-layer reviews.

This creates four systemic problems.

Problem 1: Inefficient Data Ingestion

Spreadsheet-based studies require taxpayers to reformat data into rigid templates rather than pulling information directly from source systems. This shifts work onto your team, inflates billable hours, and introduces errors before analysis even begins.

Problem 2: Manual Work Disguised as Analysis

Cutting, pasting, reformatting, and building pivot tables consumes significant time but does not deepen the R&D assessment. These manual steps increase cost while compounding the risk of calculation errors.

Problem 3: Elevated Security and Review Risk

Spreadsheets are routinely emailed across review chains. Each handoff creates version control issues, exposes sensitive data, and increases the likelihood of unintended errors without improving the quality of the credit.

Problem 4: Late-Stage Errors and Rework

Because spreadsheets lack built-in controls, errors often surface only after delivery. Missing data, misclassified costs, and calculation issues are discovered late, when corrections are slow, expensive, and difficult to defend.

Spreadsheet software dates back to 1979. R&D credit studies should reflect today’s standards for accuracy, security, and substantiation.

If your provider cannot operate beyond spreadsheets, they are not equipped to protect the value or defensibility of your credit.

Questions about what a modern R&D credit study should look like?
Talk to a SPRX tax expert.