Fast-growing R&D tax consultancy BourkeHood falls into voluntary administration

Fast-growing research and development tax advisory BourkeHood has entered voluntary administration, with its high-profile founder highlighting cashflow challenges at the firm.

On Thursday, KordaMentha announced Kate Conneely and Rahul Goyal were appointed as voluntary administrators for BourkeHood Pty Ltd, trading as BourkeHood.

In a statement shared by KordaMentha, BourkeHood founder and CEO Jason Hood said the business was beset by cash flow concerns.

“While this was not an easy decision, [voluntary administration] was necessary to address the cash flow challenges we faced in our Australian operations and acknowledge the impact this may have on our clients and employees,” he said.

“And I want to assure them of my commitment to working with the Administrators and exploring the best path forward for everyone.”

In his own statement, Goyal said the administrators will strive to keep BourkeHood clients, and the Australian Taxation Office (ATO), updated on their operations.

“We are working cooperatively with Jason and management to understand the business, understand the issues, and then resolve those issues in due course,” Goyal said.

“We know the uncertainty this creates for clients of BourkeHood and other stakeholders including the ATO, and we will report to all stakeholders as a matter of urgency. We appreciate your patience.”

The voluntary administration only affects BourkeHood’s Australian arm, Goyal added.

Details posted by the Australian Securities and Investments Commission state the first meeting of creditors will take place on August 14.

Launched in 2020 by Hood, the company quickly built a name for itself as an advisor to businesses hoping to make the most of R&D tax incentives offered by the federal government.

Offering assistance to first-time entrepreneurs and seasoned operators alike, the firm pledged to help founders navigate the often complex applications for R&D tax incentive reimbursements.

By working with clients in fields as diverse as dentistry to the fintech field, BourkeHood claimed revenue of $5.1 million in FY22, landing the company on the Australian Financial Review’s Fast 100 list.

International expansion came relatively soon after launch, with BourkeHood launching in New Zealand, the US, and the UK.

In March last year, the company said it had assisted more than 180 international clients as they claimed $30 million in R&D funding

The BourkeHood website says the business has now helped businesses secure in excess of $50 million in R&D benefits, with the single biggest benefit clocking in at $1.7 million.

Its rapid success saw Hood become a finalist in CEO Magazine‘s 2022 Executive of the Year awards in the Managing Director of the Year category.

Hood also built a name as a commentator on R&D tax issues, including for SmartCompany Plus.

SmartCompany has contacted KordaMentha and BourkeHood for comment.