In order to succeed in business, you need to have the right knowledge on the financial basics. They are essential in ensuring that your business is operated in the most efficient manner.
Financial records come in handy in the process of claiming the benefits of the SR&ED program. In Canada, the Canada Revenue Authority is the body that is responsible for the rolling out and implementation of the SR&ED program. One of the key requirements is that a company should have accounting records that are credible and explainable. In a majority of case laws in the tax courts of Canada, many firms have been denied the SR&ED tax credit due to lack of proper accounting records.
Accounting staff that a firm may need include an:
Accounting Adviser: This is a specialist who has the mandate of offering financial and accounting advice to the firm. He/she is supposed to advise the company on the activities and the expenditures that will likely increase the SR&ED tax credits if the company involves in them.
Budget Analyst: This is the person to plan on all the company’s expenditures. They make sure that all activities that are entitled to tax credits are done within the company’s parameters.
Auditor: Responsible for making follow ups on the records and making sure that bodies such as the IRS and CRA have the right documents, so as to facilitate the processing of the SR&ED tax credits.
SR&ED Department: Often companies have a department that helps them in filing and claiming SR&ED tax credits. A point to note is that if you opt to have an internal system, make sure that you have qualified personnel who will ensure that you receive all of the tax credits you are entitled to. There have been cases of companies missing out on accrued tax benefits as a result of poor accounting. However, this can be avoided by using an SR&ED tax expert like Swanson Reed, who will ensure that you are eligible and receive your maximum claim.
