If you want to create and submit a successful SR&ED grant application, you’ll need the right team of consultants to guide you through the process and make sure you’re on the right track. Part of this process is evaluating their integrity and the quality of work they deliver for your business. With more research and development credits created to support innovation in Canada’s science and technology sector, there’s no better time to work with a consulting team to secure valuable SR&ED incentives.
At Innotek Consulting, we have worked with several businesses across Canada to ensure they receive industrial grants and federal tax credit refunds to operate. We provide professional consulting and research/development services to Canadian companies involved in progressive scientific research and experimental development. We’ll help you find and outside the right assistance for your business’s next big project.
To ensure you’re working with the right team, we’ll go over three questions you can ask to make sure your priorities are met and your application is successful!
What Is Your Claim Approach?
To get started, ask the consultant what their claim approach is to apply for SR&ED credits. This can help determine how much time and effort they’ll put towards comprehending the technical aspect of your business and details in your application. We often recommend that every SR&ED claim should begin with the technical foundation of the project before breaking down the financial aspects.
Afterwards, you can discuss what happens in terms of a tax audit and how they’ll help you manage that. It’s important that they guarantee they’ll be there for support in case that happens. If they tell you that you’re on your own, you should also make sure they provide the resources you need to handle an audit.
You should also take into account the experience of the SR&ED consultant. Some can be specialists trained in this type of work to get it done while others work as accountants familiar with Canadian tax laws. Nonetheless, you should have some knowledge yourself of how to file SR&ED tax credits to gauge how much your consultant knows. You want someone with years of experience and who is willing to work with you in case of an audit.
It’s also important to consider who’ll be preparing your SR&ED claim. For some consulting firms, they have in-house staff members to assist. For firms like Innotek, we outsource the work to a third party. Additionally, senior consultants aren’t always submitting your claim as it may be handed down to a junior employee with less experience. Ensure proper quality assurance steps are taken and the senior consultant checks everything before submitting the claim.
SR&ED consulting firms also have their own fees attached to the service they provide. Let’s go over how they charge for their services.
How Are Your Fees Structured?
With any service comes compensation. One of the more difficult aspects of a consultation is determining a fee structure that is mutually agreed upon and benefits both parties. In regards to SR&ED grants, the tax incentive itself can sometimes be the single source of cash flow for a firm if the application is accepted.
Businesses are often discerning when it comes to this type of payment because if consulting fees are too high, the tax credit becomes less effective for their projects. Larger, established companies may relent and invest in the consultation if it means a higher chance of success, but this can’t be said for burgeoning tech startups. They’re already operating on strict budget funding and personal savings that are allocated to worker salaries. As such, it can be difficult to accommodate an SR&ED consultant if their fees are too expensive.
Any good SR&ED consultant will understand the circumstances of a growing tech company and should seek to establish a long-term relationship with them. As a result, some consultants will offer services on a contingency basis, meaning they’ll only get paid once the claim has been processed. It may take a few months, but it gives the company more financial flexibility and motivates consultants to secure successful claims.
On the other hand, some consultants will request payment upfront. While it may be a fair exchange, you’re paying someone with no guarantee your claim will be successful. Ultimately, it’s up to you to decide which type of consultation fee works best for your business. That includes evaluating the experience of the consulting firm you’re considering.
How Many SR&ED Claims Have You Processed?
An SR&ED consultant’s track record can speak volumes to how they conduct their work. You would more preferably work with the one who has more successful claims under their belt than the one with the most rejections. In addition to checking their approach to SR&ED claims, you should ask them how many reviews and audits they’ve worked through and have successfully defended when asked by government officials.
Everyone wants to work with an experienced consultant who is knowledgeable and trained to create SR&ED applications. At Innotek, we’ll connect you with the right people to assist you in your SR&ED grant application.
We offer free consultations to answer any first-time questions and help you get started on your next claim. Contact the Innotek consulting team today!
