Track R&D Data to put money in your pocket

Many companies leave tax credit dollars on the table through being concerned that the Scientific Research & Experimental Development (SR&ED) program is more trouble than it is worth – either because of the time frame for processing the claim or because of the data that needs to be compiled.

There can be a daunting amount of data to compile, which can be difficult particularly for a small, growing company with few established procedures.  Given the longevity of the SR&ED program, many technological solutions have developed to help companies meet these difficulties.

Many software systems are now available that have been adapted to securely capture, manage and share relevant development work and generate the necessary reports, for SR&ED purposes. Now easier to use and collaborate, employees are more likely to take the time to keep their time records and R&D information up to date.

In some cases, mobile technology can help – accessing and creating relevant information via smartphones and tablets, synchronizing mobile and desktop.  This means less data “leakage” – small units of time might get lost if paper-based records are kept instead of electronic time logs. And, small units of time add up.

Mobile devices, combined with efficiently designed software, help to meet the CRA’s requirement for ‘contemporaneous’ reports, in which the information is gathered at the same time the work is performed. Being able to demonstrate the company’s ability to capture the data accurately and timely gives government authorities more confidence in the reports.

This also helps avoid a frustrating, time-consuming search for information when the 18-month filing deadline looms closer – the information has already been compiled, it just has to be collected into the appropriate form.

Companies, with the help of Pinnacle Consultants, utilizing appropriate systems will find an increasing data efficiency year over year, with significantly improved filing success, ultimately putting money back into their pockets.