Archive for the ‘recession’ Category

The current economic recession has proven to hit even harder than many economists anticipated. An estimated 129,000 Canadians lost their jobs in January alone, of which Statistics Canada reports that Ontario workers lost a staggering 71,000. Alberta, once a thriving, profitable province, is even feeling the blow, having recently announced another 15,000 jobs lost. Forecasters predict a loss of yet another 250,000 manufacturing jobs over the next five years if the Canadian manufacturing sector follows similar trends occurring within the developed industrialized nations.

For several industries, there is little to no chance of a significant sales increase in the near future. With businesses grasping at straws to stay afloat in this downturn, it is more critical than ever to find a way to increase revenue.

Canada is internationally heralded as a leader in R&D funding for domestic-owned small to medium sized enterprises. The SR&ED program (Scientific Research & Experimental Development) is one avenue that businesses, especially manufacturers, can pursue to improve their bottom line. The goal of the federal SR&ED program is to encourage experimentation and technological advancements within Canadian companies, and this is of particular benefit in the recovery of our economy.

“Companies need to sit back and assess their individual circumstances. It’s time for a second look at the SR&ED process, whether you’ve claimed previously or not.” says Ajay Sinha, VP Operations with Northbridge Consultants. “That old adage is true – knowledge is power. In regards to capitalizing on the benefits of SR&ED, it is worthwhile to seek assistance from a reputable SR&ED consultant.” Sinha is reminding clients that the CRA has hired more auditing staff and made many revisions to the T661 and filing process. He emphasizes that navigating the maze of technicalities correctly is imperative to maximize the size of your claim, and increase the rate of approval to enlarge the dollar amount of returns or tax credits. “It’s a sink or swim situation.”

Sinha mentions that “For those who have had a negative experience or have been disappointed with the results, it is often due to qualifying activities that have been overlooked, and thus not claimed for, resulting in a much smaller return, or in some cases, rejection of the claim.”

Many companies use their SR&ED returns of offset incurred development costs. Alternatively, funds can be invested in new equipment and materials, new hires, or even facility expansion. Sinha adds “We also teach our clients how to track their future eligible activities to make documentation for claims easier and more substantial. This promotes repeated success with the program in the future. The extra resources to put towards the advancement of technology also give Canadians that edge above competitors internationally.”

On Friday, March 6th 2009, Northbridge Consultants will be holding another free breakfast seminar, to provide a useful information sessoin on the SR&ED program.  The seminar will be held at the Waterloo Inn Conference Hotel.  Details can be found at http://www.northbridgeconsultants.com/sr&ed-news-events.php

For more information, email info@northbridgeconsultants.com or call us at (519) 623-2486.

Stores opened even before the crack of dawn, but many Boxing Day shoppers were lining up as early as the night before, some admittedly even forsaking Christmas dinners to be first in line and take advantage of the savings. As the day wore on, the dangerously icy roads and miserable rain still didn’t stop shoppers from flocking in droves.

While many retailers were hopeful that this Boxing Day would provide a much needed boost to year-end sales, and for some it did, many have already been offering low post-Christmas prices since as early as late November in an effort to draw crowds.

The decline in our dollar was predicted to lessen the competition with American online competitors for our retailers this Christmas season. Nevertheless, in spite of the weakened loonie and overall economic recession, online shopping held strong. Amazon is reporting that the 2008 holiday season has been the online retailer’s best yet. On its peak day, December 15th, 2008, Amazon received over 6.3 million orders. E-commerce giant PayPal is also reporting better sales for 2008. An Ipsos-Reid survey to over 1,000 consumers commissioned by PayPal Canada concluded a 40% increase in online shoppers from two years ago.

However your shopping was done, whether you chose to stay inside and spend time with family or brave the crowds and shop til you drop, we at Northbridge hope your holiday season has been safe and happy. All the best in 2009.