SR&ED stands for Scientific Research and Experimental Development. It is a tax incentive program that supports and encourages businesses to invest in and develop technological advancements, scientific knowledge, and related research.
To qualify for these governmental grants, the work must advance the understanding of scientific relations or technologies and address uncertainties in the scientific community. It is a complicated program, with many business owners turning to consulting firms to guide them through the process.
Even with professional assistance, however, many business owners still find the program to be challenging. Who you pick can make a difference in your experience with the program.
Innotek Consulting LTD is a Vancouver based company committed to helping Canadian companies through the process of identifying SR&ED eligible activities, writing and filing SR&ED claims, and obtaining provincial and federal refunds and/or tax credits. Here is some useful information on the SR&ED and how consultants can help you.
What You Need to Know About SR&ED Consultants
Experienced SR&ED consultants should have background knowledge and experiences in technology, accounting, and/or law. This is highly important in their understanding of scientific research and its experimental development. The consultant should be able to apply this towards SR&ED policies and qualifications and clearly document and communicate the work performed to the CRA.
A good background in technology is also necessary for the consultant to understand the logic behind scientific and experimental innovation. They should not only evaluate necessary details about standard versus non-standard industry practices from clients but also determine which projects are eligible.
The advantage of hiring an SR&ED consultant is for their in-depth understanding of innovative industries, and their ability to help claimants understand the program, and communicate to claimants how their work does or does not meet these requirements.
How to Decide if a Consultant is Right For You?
There are many factors that can determine whether or not you should rely on an SR&ED consultant. Since the SR&ED process not only involves filing forms and spreadsheets, you need to find out if the consulting firm has a scientific methodology behind their process. It is considered a red flag if this is not provided to you as part of the service.
You will need knowledgeable people in the scientific field to help you with SR&ED and that includes the people writing your reports and calculating your claims. Make sure they understand the strength of your technology. Otherwise, your approach will lead to many inconsistencies.
Lastly, you should find out if the consultant will work to defend your claim, provide evidence or documentation, and a strategic review to tie things together. They should know your case from scratch and should be the selected person to defend your claim if it is audited.
A good SR&ED consultant should also help keep all your documents and evidence organized to prepare if an audit does happen. They should be able to advise you on any special adjustments and have constructive conservations with your accountant come tax season.
How to Learn More
Whatever your decision will be, an SR&ED consultant will work with you to get the most out of the tax incentive. It’s always best to have someone with experience and knowledge to help guide you through this difficult process.
To learn more about the program and how Innotek’s services will benefit you, visit our website or send us an email.
