SR&ED or the Scientific Research and Experimental Development program is a tax incentive program primarily funded from the federal government to assist Canadian businesses of all sizes and divisions to conduct research and development in Canada. The SR&ED program is run by the CRA (Canadian Revenue Agency) and has been around for 20+ years. The federal and provincial government hopes to encourage new, improved, or technologically advanced products and processes. In turn, making Canada a leader in innovation.
The SR&ED program is the single largest source of federal funding available for research and development. Companies can claim and qualify for expenditures such as wages, materials, equipment, and overhead. Approximately 18 500+ companies apply every year totaling over 4 billion dollars in income tax credits. Average size of companies claiming SR&ED have approximately 6-7 employees.
SR&ED tax claims are not always subject to review. But those that are, can rest assured that Precision SR&ED’s software will reinforce your T661. This innovative tax software offers a wide range of ways to back up your work performed throughout the tax year.
Time stamped labour is an essential tool in sr&ed software. Essentially time stamping is the time an event occurs recorded by a computer, and not the event or user itself. Typically, time stamping is used for event logs from a verified time source. Claimants will no longer be faced with the question of when particular events took place, or when data was recorded for the research and development project. When faced with an SR&ED audit, nothing backs up a claim like objective evidence. SR&ED software can manage all evidence, from receipts, project documents or images, wages and everything else between stored efficiently and securely for review. All labour involved in research and development projects is precisely recorded, removing the need for any guesswork. With this SR&ED software, your T661 has never been so credible.
With the second fiscal quarter coming to an end for most businesses, there’s never been a better time to try out SR&ED software. Rather than wait for the new fiscal year, start creating new habits that will benefit everyone in the grand scheme now, then next year it will be easy sailing.
Precision SR&ED tax software creates a more disciplined environment for everyone involved in the research and development program. Whether it’s from a consultant’s, a business, or an employee’s standpoint, this software makes tracking research and development projects much more accurate. While it may seem like a good idea to wait until the new fiscal year to implement new software, think of the possibilities. Not only are clients creating a more disciplined structure, but they can also backtrack their data, add expenses, add labour, and optimize their future SR&ED claim for this year. Come the next fiscal year, everyone involved will be well prepared and educated for their future claims.
For more information, join our free webinars or check us out at www.precisionsred.com.
With consultants managing multiple clients at any given time, Precision SR&ED’s software not only makes multitasking much easier, but will generate additional revenue by maximizing claims and creating additional time efficiency. Not only is this software fast and powerful, but it is very simple for you and your clients.
Precision SR&ED’s software manages all your data in one easily accessible web portal. On average, consultants see up to a 45% savings on their information management collection alone. Your research and development clients will receive daily reminders to log essential labour hours, project expenses, and supporting evidence. You the consultant now have the ability to monitor all SR&ED project information throughout the claim, eliminating the need to recreate supporting documentation at year end.
Precision SR&ED has also developed an innovative BlackBerry application so clients can input data from anywhere. By doing so, you give them the flexibility to enter data on the job while the work is being performed, eliminating the need to hassle them or worry about missed data. You can also maximize on your SR&ED tax credits by being up to 30% more accurate with Precision’s software. Finally, cut back on your technical writing time by up to 25% by having claim information available at your fingertips. Allowing for an increased client base, addition in profit margin, and faster larger claims with less effort, if that isn’t best friend material I don’t know what is.
For more information, sign up for our free webinar Wednesdays at 1pm or contact us at 1-877-889-0628.
My clients have started using the Precision SR&ED software, and simply put, they just love it. It makes it so much easier for them to get into the routine of logging and tracking their SR&ED projects. But that’s only the half of it. When I have detailed information about their projects upfront, I spend a lot less time with them, digging for and trying to understand their projects. The software saves me time. First and most obvious is the time saved determining project financials. Clients prepare a clear record of the time and resources consumed be each project, as they work on the projects. Second, it saves me time in writing the narratives. The software documents what happened during the year– when the obstacles occurred, what they did to overcome them, and the results of their SR&ED efforts. And finally, it saves me time identifying and gathering supporting documents; the clients have identified all relevant documentation as the projects progressed. When I save time, the client saves time, and that’s the hidden benefit of the software.
Effective July 1st 2010 the RTA’s (Research and Technology Advisors) of the CRA (Canada Revenue Agency) will begin using the Claim Review Manual when conducting research and technical audits. When a applicant’s claim is reviewed, it will be subjected to the Guide to Conducting a Scientific Research and Experimental Development Review Part 1: The Technical Review. While the new Claim Review Manual is fairly consistent with the procedures of the previous manual for RTA’s, it is more detailed in certain aspects.
With the new auditing procedures you can be expected to work more closely with the RTA prior to and throughout the review process. The new manual also promotes greater co-ordination with the financial reviewers. Clearer timelines and clearer expectations of the claimant can also be expected. Financial and technical reviewers will communicate simultaneously so that the final results are far more concise than ever before. These new policies will be much more detailed than before. SR&ED claims will in turn need to be more detailed and concise and further supporting documentation will be required.
Precision SR&ED recently met up with SR&ED consultant Ken Phillips who talked about the benefits of using the Precision SR&ED software platform for his SR&ED clients.
Here is a clip from our meeting with Ken…
Do you currently use software to manage your SR&ED claims? Comment below to share your thoughts.
Recent reports indicate big changes for the SR&ED program. In this new, tighter economy, the CRA is taking more precautions to ensure that government programs, such as SR&ED, are operating within updated regulations and compliance. Some of these new guidelines suggest that SR&ED data will need to be collected and documented using more precise methods. Having the proper SR&ED software to collect this data will be key for future SR&ED claims.
A recent post made by the CATA Alliance suggests that this 25+ year old program is due for a major overhaul. With the release of a new T661 Form and guide, the following changes are already being implemented:
Promote a model for how Experimental Development is to be conducted and documented that is more appropriate to University Research than to engineering developments
Create the base for transactional, compliance-oriented audits rather than for reviews
Move the program’s focus to very much a Research orientation
For more information on upcoming changes to the SR&ED program, visit our post, CRA to revise guide on conducting a SR&ED review, which includes a list of links to the CRA information on this program.
How do you manage your SR&ED data? New initiatives from the Canada Revenue Agency (CRA) regarding the process of conducting a SR&ED review make it more important than ever to keep a precise record of your SR&ED information. Precision SR&ED can help organize, track and collect the objective evidence required by the CRA to submit a SR&ED claim.
For more information on the recent news from the CRA, please refer to the links below:
For more information on Precision SR&ED or how your next claim can benefit, please contact us at 1 (877) 370-4436 or fill out a form on our contact page.
The Precision SR&ED software has made it easier than ever to manage the objective evidence required for your SR&ED claim. We have put together a list of the Top 5 reasons the Precision SR&ED software is a must-have for your next claim.
Reason #5: Using Precision SR&ED Takes Less than 30 Seconds!
If it takes too long to log information, you (or your employees) won’t want to do it. Once familiar with the system, it takes 30 seconds (on average) to report data.
Reason #4: BlackBerry App for on-the-go Reporting
No matter where you are, managing your SR&ED data is easy. With our integrated BlackBerry App, users can update their information from the road.
Reason #3: Easy SR&ED Information Exporting to Excel and PDF
With all your information in one place, it’s easy to export monthly, yearly, or time-spanned reports of your SR&ED data. Don’t waste hours gathering and organizing data to make your reports!
Reason #2: Manage all your SR&ED Data in one place!
With the Precision SR&ED tool, you and your employees can manage all the information for your claim in one place. With our web-based software and BlackBerry App, it’s easy and convenient to enter data.
Reason #1: Get the most out of your SR&ED claim!
Using the Precision SR&ED software conditions employee behaviors resulting in forced disciplines for organizations to track, record and report on a daily basis. These disciplines can generate a 75% reduction in reporting time and allow a company to maximize its labour allocation to its full potential.