Applying for SR&ED (Scientific Research and Experimental Development) funding can be quite nervewracking; Was my work successful enough? Does my business have to be large? How can I communicate everything I worked on within the limits?
There are so many questions to ask yourself so we are writing to help ease the stress and confusion a little. We are specialized SRED tax accountants in Vancouver, dedicated to helping you finetune your SRED application so that you improve your chances of getting approved for amazing tax credits.
As qualified SR&ED consultants in BC, Innotek knows the process like clockwork and can help you mitigate weak spots in your application and prepare it systematically so that you won’t have to worry about appealing a denied claim.
Do I Qualify For SR&ED Tax Credits?
To start off, since this is Canadian funding the first qualification is that your business must operate in Canada and carry out your R&D (research and development) within Canada. Luckily things like business size or type, private corps, partnerships, trusts, proprietorships are also accepted for SR&ED, do not factor in as much. Actually, about 75% of claimants are small businesses.
The most important qualification is, of course, your involvement within R&D but this is where most companies start to doubt themselves. The range of accepted involvement is large, from direct involvement to being a supporting factor towards progress. Work such as programming, engineering, data collection, and psychology research are valid enough to make your business a potential candidate.
Even with this many people think their work is too mundane or not successful enough to warrant trying to apply, this is a poor mistake. SR&ED doesn’t factor in how successful the work was, but instead the attempt towards progress. After all, a mistake is a learning experience as well and science isn’t much without its mistakes that lead up to success.
Potential Obstacles to Preparing a Watertight SR&ED Application
Another thing holding many people back is how daunting the application process can just feel. Summarizing your work and arguing for your qualifications in just under 1400 words sounds impossible to many people. How do you decide what to include? Put in the successes? The failures? The days just spent doing bookkeeping and data entry? Or just describe the financials? Narrowing down a year’s work can be very harrowing especially if you don’t know which angle to approach it at.
How to Get Your Application “Approval-Worthy”
All those worries are where an SR&ED consultant comes into play. Specialized in understanding the formating of SH&ED applications with experience within the industry, letting them make your application the most concise without undermining or overlooking any important process and work you have done throughout the year.
While it is money related, SR&ED funding actually focuses more on what you did, what happened, and what you learned as opposed to what you spent. So with this compared to a regular accountant SR&ED agents can really give you a competitive edge. Focusing on the technical aspect rather than the financial to make sure all the important information is in your application.
Why Wait? Claim Your SR&ED Tax Credits Today!
If you are still unsure about how to make your application the best it can be, Innotek can help you!
Innotek is happy to offer our experienced team of engineers and technology experts to guide you into having the most polished application you can. SR&ED provides millions of dollars to businesses just like yours to help you grow and do the best work you can!
