Running a business is probably one of the riskiest responsibilities and worse for companies dealing with scientific research and experiments. The Canadian government saw the need to support such businesses through the SR&ED program, which offers them an incentive and tax credits to eliminate financial constraints for such businesses.
SR&ED has remained significant in Canada for years for several reasons. There are many reasons you should apply for SR&ED funding as a business. The program has benefited many businesses, so don’t worry about putting your trust in it. Most importantly, stay cautious about the agencies, mentors, and consultants you intend to work with due to the intensified cases of shady deals and organizations. Claim for those SR&ED benefits; they are your rights.
As a business, you may be eligible to apply for the SRED program. Let’s learn why businesses should apply for SR&ED:
Benefits of Applying for SR&ED
Scientific Research and Experimental Development-oriented businesses require huge capital and incur substantial costs through the operations. With the Canadian program, these businesses are saved from the risks of shutting down due to financial constraints.
In addition, the SR&ED program exposes businesses to significant profits and popularity in the market by assisting them in developing new opportunities and products. With sustainable revenue, the SR&ED-oriented business can face its competitors confidently.
Similarly, the SR&ED program offers businesses a way to save for their future by pooling various benefits for later use. Therefore, businesses don’t have to acquire or request all incentives and credits at once but rather accumulate them altogether.
Also, small Scientific Research & Experimental Development-oriented businesses no longer have to rely on debt finance institutions to run their operations. Debts expose such businesses to the risk of closure in case of bankruptcy and other related financial constraints. The SR&ED program finances nearly all the expenses incurred by the business eliminating the chances of loan acquisition and other forms of debt.
The other benefits of applying for SR&ED include:
With the SR&ED program, the related businesses are in a safer condition compared to others in the current uncertain nature of the economy.
To enhance creativity and innovation- After benefiting from several incentives and tax credits, SR&ED-oriented businesses focus on generating new ideas and creating new opportunities, products, and methods while improving existing ones. The newly generated ideas replace the older ones, which probably have already gained multi-national popularity and importance.
Small Scientific and Development businesses still fresh in the industry may need a mentor and a perfect example to look up to. That’s why the existing related businesses should apply for the Scientific Research & Experimental Development funding to lay a foundation for the upcoming youngsters.
Tips for Successful Benefits from the SR&ED Program
The SR&ED funding benefits are a right of every business under the category and have met the crucial requirements of the Canada Revenue Agency. As a business, it’s your responsibility to go for the benefits through application and a series of rules and regulations from the CRA.
Working with a mentor has never gone wrong, especially in the Scientific Research & Experimental Development field, which is quite complex for beginners. Get a mentor or two who can adequately guide you through the process, highlight the tricks and techniques you barely knew, and ensure you successfully benefit from the SR&ED. Essentially, request testimonials from potential mentors to evaluate their past performances before hiring them.
You can never go wrong with record keeping and proper documentation, no matter what field you’re focused on. The two, which go in line, provide safe storage for your essential documents and easier retrieval whenever the Canada Revenue Agency requires them or while applying for SR&ED incentives and tax credits. Even the pettiest receipts need to be filed for future reference.
In addition, you can follow various tips for a smooth application process:
- Use time-tracking tools throughout the application process and after for the most effective results possible. The tools also help to reduce monotony which could arise from repeating the same procedure. Some of these tools include Toggl, Harvest, and TimeCamp.
- Use communication tracking tools to pass sensitive data and information related to the Scientific Research & Experimental Development program. The tools are quite safer compared to the common communication platforms as they provide greater security to the information. Some of the tools include Slack, HipChat, and Producteev.
- You can also seek consultancy services for more effective results. Consultants guide you through the process with a deeper scope and purpose than mentors. They also make the SR&ED claim process quicker and more peaceful than it would have been working single-handedly.