One of our Business Development Managers has had an article in the June edition of Exchange Magazine about how the SR&ED program can be used to help improve your business’s bottom line.

You can read this article here.

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.”

Hello Readers,

On Thursday, January 29th, 2009 Northbridge Consultants will be holding our very first free breakfast seminar, to provide a meaningful information session on the SR&ED program. There will be a free, fully catered breakfast  buffet, and the seminar is of no cost to attend.

The primary focus will be to provide a complete, thorough understanding of the SR&ED process, and how companies can use this to take advantage of Investment Tax Credits for work performed within Canada.

The seminar on January 29th will be held at the Cambridge Hotel & Conference Center, in the Dorset Room. The address is 700 Hespeler Road in Cambridge, ON.

Breakfast will be served at from 7:30am, and the seminar will run from 8:00am to 9:30am (with an intermission at the 45 minute mark to allow for a break). The Northbridge team will be staying after the seminar for you to approach us with questions.

The speakers at this event will include:
Sol Algranti, President & CEO of Northbridge Consultants
Ajay Sinha, VP of Operations of Northbridge Consultants
Gerry Fung, Account Manager with Northbridge Consultants
Ashley Demers, Sales & Marketing Specialist with Northbridge Consultants

also in attendance will be our special guest speakers:
Ken Lancaster, Tax Principal at MacGillivray Chartered Accountants & Business Advisors
Larry Vokes, Community Development Advisor with EMC Canada

To register, or for more information, contact:
Ashley Demers at (519) 623-2486 x 231 or ashley@northbridgeconsultants.com

You may also feel free to pass this information on to anyone you feel may be interested in attending.

Register soon, as seating is limited.

We hope to see you there!