How Jahnel Group Unlocked Over $1 Million in Tax Savings with Hiline
Finding a proactive accounting partner can make a huge difference in any business.
Unlike our previous CPA, our Hiline team acts like a partner in the business—finding and acting on opportunities that are helpful to our goals. We’ve benefitted from this approach time and time again, all because we switched to Hiline.
Jahnel Group
Organization Mission
Jahnel Group’s mission is to provide the absolute best environment for software creators to pursue their passion by connecting them with great clients while doing meaningful work.
- Working with an old-school CPA using paper-based accounting methods and in person meetings to manage accounting completely off the cloud.
- Missing out on major tax breaks and incentives their CPA was either not aware of or did not actively pursue.
- Business growing in size and complexity, with their CPA likely unable to provide scalable support.
- $1 million in R&D tax credits and other tax breaks received over several years thanks to Hiline.
- Significant improvements to cash flow through accounting practice updates driven by insightful understanding and deep knowledge of the company’s core business.
- Hundreds of hours saved with Hiline’s tech-powered accounting approach. Financial operations are now cloud-based, automated, and fully managed by a Hiline team.
- Peace of mind knowing that Hiline has the scalable resources and expertise Jahnel Group needs to acquire new businesses and grow.
About Jahnel Group
With 125 employees across the U.S., Jahnel Group helps companies like Google, Godaddy, Bethesda, and Disney build amazing software with product design, development, and remote-team supplementation.
Brothers and co-founders Jason and Darrin Jahnel have grown the business portfolio to include a multi-use business property and vacation rental, with plans to continue expansion in the near future. The Albany-based agency has been one of Inc. 5000’s Fastest Growing Companies for 7 years in a row, and consistently ranks amongst the best places to work in the region.
The Challenge
When Jason Jahnel came to Hiline, Jahnel Group’s finances were being handled by an old-school CPA.
“Our former CPA just wasn’t forward thinking when it came to technology. We barely used email and a lot of the time I’d have to drive 45 minutes to meet with him in person to get anything done. And when it was time to file our taxes, I’d print out our paperwork, show up with a box of receipts, and sit with him for 8 hours while he crunched the numbers.”
As outdated as paper-based accounting sounds, the system worked well enough when Jahnel Group was a small company. But as the business grew in size, revenue, and complexity, their CPA couldn’t keep up.
Jahnel Group needed an accounting partner who could:
- Provide year-round tax planning and strategic financial guidance
- Transition the company to cloud-based accounting operations
- Scale as the business continued to grow
The Solution
Identifying more than $1million in tax credits, tax moves, and other savings
First, Hiline worked quickly to identify tax breaks, credits, and programs available to the business. This analysis resulted in over $1 million in tax credits over several years and a $1 million reduction in taxable income during year one with Hiline.
- R&D Tax Credit: $1.1 million over a four-year period — with more on the horizon.
- Tax Incentives: Enrolling Jahnel Group in the NYS Excelsior Jobs Program and Domestic Production Activities Deduction created additional savings for the business.
- Accrual Accounting to Cash Basis Accounting: Converting Jahnel Group’s accounting method resulted in the deferral of $1 million in taxable income, freeing up significant cash flow which was needed to help the company keep growing at a fast pace
Our old accountant never even presented us with the option to pursue the R&D tax credit. Although Hiline has helped us with a range of beneficial tax moves, the R&D credit is by far the greatest victory that anyone's ever given us. Hiline’s expertise has resulted in multiple hundreds of thousands of dollars that have been essential in helping us grow and expand. Simply put, Jahnel Group would not be where we are today without Hiline.
Saving time with cloud-based accounting and automated workflows
To modernize Jahnel Group’s financial processes and improve organizational efficiency for the company, Hiline identified and set up the software that Jahnel Group needed to manage their financial operations.
Transitioning Jahnel Group to Quickbooks Online and introducing software for receipt tracking, reporting, document filing, e-signatures, and more saved Jason’s team from countless hours of back-office tasks every month.
There’s a great sense of professionalism with Hiline. They’re constantly looking to evolve and make things easier for us. And our Hiline team is very forward thinking in terms of the technologies that they adopt. They set us up with accounting software, document portals, receipt tracking software, even automated checklists. Everything’s e-filed. Everything’s e-signature. It’s so seamless that I can do most of my taxes without even meeting my Hiline team.
Strategic partnership and scalable, year-round support
Hiline’s subscription-based model gives Jahnel Group year-round accounting services and ongoing access to a team of financial experts.
With a dedicated team of bookkeepers, accountants, and CFOs working on the company’s finances every month, tax season is easy; filing is quick and there are no unexpected surprises.
Jason can connect with Hiline to get the answers he and the team need to make informed business decisions that support Jahnel Group’s growth.
And Jason and Darrin have expanded their portfolio to include additional businesses—a mixed-use business property, a vacation rental, and more on the horizon—Hiline has scaled its support to manage each business’s accounting needs in addition to handling Jason and Darrin’s personal tax filings.
Unlike our previous CPA, Hiline actively maximizes benefits for us. Rather than just preparing our returns, Hiline acts like a partner in the business—identifying and acting on opportunities like tax credits and other tax moves that are helpful to our goals. We’ve benefitted from this approach time and time again, all because we made the switch to a proactive accounting partner like Hiline.
The Results
- Major Financial Wins. Through the R&D tax credit and other strategic tax planning initiatives, the Jahnel Group benefited from enormous tax savings and improved cash flow.
- Strategic Financial Guidance. Jahnel Group is free to expand as soon as it needs . Hiline has the expertise and resources available to help Jason and Darrin grow the business.
- Scalable Accounting Support. With Jahnel Group continuing to expand into a multi-business operation, Hiline has continued to deliver the resources and know-how that Jason and Darrin require at each stage of their entrepreneurial journey.
- Operational Efficiency. Shifting to cloud-based financial operations allowed Jason to redirect his focus to strategic growth initiatives, rather than being bogged down by the complexities of tax prep, tax filing, and day-to-day financial management.
- Trusted Partnership. Jahnel Group’s founders have a greater peace of mind knowing that Hiline will always proactively seek to maximize the benefits for the business. Hiline’s ability to align and scale with the company’s growth, and Hiline’s expertise in handling the complexities of the expanding business model, meant that financial management was no longer a constraint but a catalyst for growth.
See what Hiline can do as your accounting partner
Jahnel Group’s journey is a testament to what can be achieved when businesses are supported by a proactive, tech-enabled accounting partner.
At Hiline, we’re not just about numbers; we’re about nurturing growth, fostering partnerships, and envisioning a future where every client’s financial potential is fully realized. We’re pros at graduating companies from reactive accounting and to year-round strategic tax planning and full-service financial support.
If you’re ready for a dedicated team to deliver the financial services your business needs to thrive—accounting, bookkeeping, CFO advisory, and more—get in touch.
Connect with a Hiline advisor and learn how we can support your business today.
My advice to other business owners looking for a better accounting solution: find a firm that matches your values and operating style. Make sure they are positioned to serve your future goals, not just current needs. It's ideal to have a firm invested in your success and aligned on vision. For us, that’s Hiline.
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