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SR&ED Program can be Vital for Competitiveness

The Need for SR&ED

How do you remain competitive? We are continually working to cut costs, raise profit, become more efficient in our businesses, and to develop the "Next Big Thing" in order to get a step ahead of our competition. In times like these, it's often necessary to look at various sources of funding to help us get ahead. The Scientific Research and Experimental Development (SR&ED) program is one of the most lucrative programs for companies working on technological development and product or process improvements, and helps companies receive up to 72.7% on eligible labour costs.

The SR&ED Program

There are three criteria that define the eligibility of an SR&ED project:

Technical Advancement
The final progress made needs to have resolved the uncertainty and advance the previous understanding of the technology.
Technical Obstacles
The existence of an obstacle implies that there is no text-book solution (i.e. known methods or procedures) to solve a problem in an existing field of science. The work that is claimable must go above and beyond the existing knowledge base (i.e. base line).
Technical Content
The work claimed for must be evident of scientific process. It must involve a systematic investigation, experimentation, or analysis by qualified personnel

Common activities that meet these guidelines can include:

  • Developing new products or improving existing ones
  • Developing new processes or improving existing ones
  • Testing and data collection
  • Reducing waste products
  • Creating prototypes
  • Designing or developing software
  • And more

Not Receiving What You Should?

A recent survey held by the Canada Revenue Agency (CRA) showed that only 50% of eligible Ontario manufacturers have filed SR&ED claims. A survey conducted by NorthBridge Consulting Services revealed that many companies have a tendency to significantly under-report their SR&ED eligible activities.

Oftentimes, if you are not receiving what you should, it is usually because of one of these reasons:

  • A misunderstanding of the SR&ED program guidelines
  • Difficulty interpreting and applying SR&ED guidelines to any "grey areas"
  • Lack of time or knowledgeable people to maximize your claim

The Value of Knowledge & Experience

When it comes to filing for SR&ED, it is very critical to have a thorough knowledge of the program. You are focused on your business, and so you don't always have the time to learn everything you can about what is eligible for the SR&ED program, or to keep up to date with all of the program changes. Because of this, you could be missing out on thousands of dollars of potential funding. Working with a NorthBridge consultant takes the pressure of knowing the intricacies of the SR&ED program off your shoulders. We hold your hand through the process, making sure that you capture all possible costs and help you receive the largest return that you are eligible for.